Fragile Peace In Nigeria Leads To Stable Oil Production
Nigerian President Yar’ Adua feels pretty o.k. about the success of his amnesty offer to rebel forces that have been ravaging the contry's oil industry. (image: nation.co.ke)
The Daily Nation reported Thursday on the recent positive turn of events in Nigeria. Following threats last week from the Movement for the Emancipation of the Niger Delta (MEND) to take up arms again, President Umaru Yar’ Adua got good news as militants surrendered their weapons by the thousands.
Some 9,000 ex-militants have embraced the amnesty offered by President Yar’ Adua, and 6,000 more are expected to come forward. Thousands of guns, ammunition rounds, and other weapons have been surrendered to the government as the country saw a possible return to stability in their oil fields.
As HeatingOil.com reported in late September, tensions between rebel groups and the government that have disrupted Nigerian oil production for three years, started to thaw with the offer of amnesty. Though production had dipped to just 1.2 million barrels per day during the conflict, the positive events this week have helped output easily rebound to 1.7 million barrels per day.*
As for last week’s jump in oil prices, Channel News Asia reported that warnings from the Nigerian rebels rattled the market. MEND allegedly threatened to break the 90-day ceasefire, “warning the oil industry and military to brace for new and widened attacks.” And while the group has not yet “officially” embraced the peace process, it seems the threats were largely empty, as no new attacks have taken place. It does leave Nigeria feeling all at once elated, hopeful, and apprehensive about the possible resumption of armed conflict.
The consequences of a returning peace are increased oil output and increased stability from the region. As with most OPEC and oil-producing nations, more stable supplies out of the country will help to keep crude oil prices down. While turmoil in the region has kept Nigeria from the 3 million barrels per day it’s capable of, there is hope for a more stable future. For heating oil consumers all across the world, long-term peace in Nigeria could mean lower prices for home heating oil in the future.
*Please note: In the Daily Nation’s article cites Nigeria’s output as “1.7 billion barrels per day.” However, based on various other sources including OPEC’s website, I believe this is a typographical error that was meant to read 1.7 million.
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olaniyi says: says:
thanks for this…we dont have a good leader in this country…a leader stiling the money a countryand also asin as a leader….
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