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Nigeria and Angola responsible for almost half of OPEC+ oil supply gap – Analysis

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3 years ago

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LONDON/LAGOS (Reuters) – Almost half the shortfall in planned oil supply by OPEC and its allies is down to Nigeria and Angola, data seen by Reuters shows, reflecting a number of factors including moves by Western oil majors away from African projects.

OPEC and its allies, known as OPEC+, pumped 1.45 million barrels per day (bpd) – equal to 1.5% of world supply – below its target in March, the OPEC+ figures seen by Reuters show.

According to the figures, Angola was responsible for almost 300,000 bpd of the OPEC+ supply shortfall while Nigeria was pumping almost 400,000 bpd below target. The war in Ukraine has also hit Russia’s oil trading and its output was about 300,000 bpd short of its March supply target.

The OPEC+ shortfall is one of the reasons global oil prices hit a 14-year high in March above $139 a barrel and it has prompted calls by the United States and other consumers for producers to pump more.

The Organization of the Petroleum Exporting Countries, however, has repeatedly rebuffed the calls – and one contributing factor is simply that some of its members don’t have oil available to pump.

In OPEC’s view, investment cuts after oil prices collapsed in 2015-2016 due to oversupply, along with a growing focus by investors on economic, social and governance (ESG) issues, have led to a shortfall in the spending needed to meet demand.

“There was massive underinvestment in the industry over the years, further complicated by the effect of ESG,” OPEC Secretary General Mohammad Barkindo told Reuters.

“There was a contraction of 25% in 2015 and 2016 – unprecedented. There was no significant recovery before 2020, when we registered a 30% contraction in investments in the industry,” he said.

Figures from the International Energy Agency (IEA) show there was no significant increase in investment in global oil and gas exploration and production during 2017-2019 – followed by a 32% plunge in 2020.

International oil companies are gradually pulling out of Nigeria’s onshore oil production, although they continue to invest in its vast offshore oil and gas resources, where costs remain competitive.

Shell, which helped transform Nigeria into a leading producer since the 1930s, did not immediately respond to a request for comment about investment and the reasons for the decline in Nigerian output.

GULF PRODUCERS BOOST INVESTMENT

OPEC’s Gulf producers led by Saudi Arabia are largely meeting their OPEC+ targets, and OPEC sources say their relative lack of dependence on outside investors has helped.

“The investment shortfall affected more the countries where reliance on foreign investment is more prominent,” an OPEC+ source from a Gulf producer said.

IEA figures show that in 2019, final investment decisions (FIDs) affecting over eight times more crude reserves in the Middle East were taken than those affecting African reserves.

Middle East approvals were also consistently higher from 2011 through 2018.

“Saudi Arabia, the United Arab Emirates and Kuwait are increasing investment and that to some extent can help offset declines elsewhere,” said Audun Martinsen, analyst at Rystad Energy.

“It also highlights why OPEC is not intervening more because it is quite hard for OPEC to increase production overnight,” Martinsen said.

Angolan state oil company Sonangol and Nigeria’s state oil firm NNPC did not immediately respond to Reuters requests for comment on their production decline or the reasons for it.

According to a 2021 report from the Arab Petroleum Investments Corporation or APICORP, Middle East and North African producers were still expected to boost energy investment to $805 billion in 2021-2025 – up $13 billion on the previous year’s five-year outlook, despite the impact of the pandemic.

In February, Saudi Arabia-based APICORP said it expected rising oil and gas prices to further support energy investment in the region.

TOO MUCH RISK

While Western majors are increasingly focusing on the energy transition and selling oil assets, they remain big producers in Africa. Big Western companies are responsible for 40% of output in Nigeria and 60% in Angola, according to Rystad.

Rystad sees some potential for new investment in Nigeria and Angola but projects remain “too expensive” for the majors.

“Since 2015 the majors have been focusing on cost and developing things in Africa has been too much of a risk with cost overruns,” Rystad’s Martinsen said. “It’s not really part of their key focus any longer.”

Angolan production has fallen 50% since 2015 and output is down by about 30% over the same period in Nigeria, he said. In Nigeria production is expected to grow slightly by 200,000 bpd in the coming years, but then decline again after 2024.

Shell said last month that oil spills arising from pipeline tapping in the Niger Delta doubled in 2021 to the highest since 2016.

Underlining the extent of the decline, exports of key Nigerian crude grade Bonny Light have fallen to just two or three cargoes a month from about eight or nine previously as a result of escalating oil theft.

(Reporting by Alex Lawler, Julia Payne, Ron Bousso, Ahmad Ghaddar and Maha El Dahan. Additional reporting by Noah Browning; Graphics by Alex Lawler and Ahmad Ghaddar; Editing by David Clarke)

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OMG: Amazon Is Removing Protective Policies For Black And LGBTQ+ Employees

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2 months ago

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January 15, 2025

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Culled from Black Enterprise

Just weeks after Amazon dialed back on DEI policies, the company quietly removed protections for both Black and LGBTQ+ employees, Advocate reports.

Policies, including “solidarity” pledges for Black employees and healthcare benefits for transgender workers, were removed from the company’s public website. As the company once stood in “solidarity” with its African American workers, the retail giant removed a section titled “Equity for Black people” that detailed support of “legislation to combat misconduct and racial bias in policing, efforts to protect and expand voting rights, and initiatives that provide better health and educational outcomes for Black people.”

Amazon also removed an outline of the gender-affirming care benefits provided to employees under its healthcare plan. The policy once said it was “based on the Standards of Care published by the World Professional Association for Transgender Health (WPATH),” along with a pledge stating the company was “working at the U.S. federal and state level on legislation” to assist with building anti-discrimination protections for transgender people.

Another page, once titled “Diversity, Equity, and Inclusion,” now reads “Inclusive Experiences and Technology.” Once promising to “advance DEI through technology,” Amazon replaced the verbiage with a vow to “advance the employee experience.”

The removal dismayed many employees who were concerned about what their healthcare would look like. While the company claims the benefits are still in place, employees are still worried. “I’m a bit worried … if that will impact insurance coverage in the future,” one employee said via text message. Another employee highlighted how Amazon’s changes were “a bit of a backward step” from previously stated supportive actions, according to the Washington Post. Spokesperson Kelly Nantel defended the company’s moves, claiming, “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”

The company feels employees shouldn’t be too taken aback by the changes, highlighting a memo from December 2024 where Vice President Candi Castleberry announced some DEI initiatives would be pushed back under the leadership of Founder Jeff Bezos.

Following the Supreme Court’s 2023 ruling to overturn affirmative action in college admissions, major corporations pushed back or eliminated their diversity, equity, and inclusion programs. Ford Motor Co., Harley-Davidson, Lowe’s, and Tractor Supply Co. succumbed to the conservative outcry, calling on them to pull back on support for misrepresented demographics, including Black and LGBTQ+ employees.

In early January 2025, McDonald’s, known for avidly supporting Black initiatives and HBCUs, scaled back on its diversity goals. This was followed by Facebook and Instagram’s parent company, Meta, which confirmed that its employee DEI programs were being dismantled.

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Global Cyber Security Expert, Professor Ojo Emmanuel Ademola bags Most Outstanding Personality of the Year Award

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9 months ago

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June 14, 2024

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Professor Ojo Emmanuel Ademola has been recognized as the Outstanding Personality of the Year in Technology at the prestigious 4th Edition of the South West Advancement Award and Investment Summit. Professor Ademola is a Nigerian Cyber Security and Information Technology Management Professor and a Chartered Fellow of the Royal Chartered Management Institute.

This incredible achievement was celebrated at an exquisite event held on Wednesday, June 12, 2024, at 5 pm at the esteemed Oriental Hotel in Lekki, Lagos, Nigeria. The event brought together esteemed technocrat political leaders and prominent personalities from diverse sectors, creating an exceptional gathering of influential figures.

 

The annual award ceremony is dedicated to acknowledging individuals for their remarkable contributions, with a special focus on those making significant impacts within the South West region of Nigeria. The esteemed recognition is a testament to Professor Ademola’s dedication and expertise in advancing technology, especially in Africa and Europe, particularly notable for his influential work in the United Kingdom.

Dr Smith Raymond, the Director General of The Institute for Enterprise Management and Analytics, commended Professor Ademola for this well-deserved award, acknowledging the professor’s unwavering commitment to technological progress. He emphasized the importance of Professor Ademola’s work. He encouraged him to continue his outstanding efforts, highlighting that this honor is a motivating call to action in further driving innovation.

 

In Professor Ademola’s absence at the event, his representation by S.A. on Media, Babatunde Adekanmbi, conveyed the professor’s heartfelt gratitude and appreciation for the nomination and award. It was seen as an inspiration for Professor Ademola to continue his impactful work in technology.

 

The event was graced by an array of distinguished personalities, including Dr. Reuben Abati, the Special Adviser on Media and Publicity to former President Goodluck Jonathan, Chief Dele Momodu, the Chairman of Ovation Media Group, and His Imperial Majesty Oba Ogunwusi, the revered Ooni of Ife, alongside various other notable dignitaries. The gathering highlighted the significance of Professor Ademola’s contributions and celebrated the collective achievements in advancing technology and innovation within the region

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Could South Africa be the first-ever country to provide a no-strings-attached universal basic income?

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10 months ago

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June 9, 2024

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South Africa suffers from severe income inequality — one of the worst anywhere in the world. Its unemployment rate, meanwhile, is over 30%.

But its government thinks it has a solution: a universal basic income .

The idea has broad political support and the country’s largest political party, the African National Congress, said recently it is committed to implementing a universal basic income within two years.

Once the figment of ideological dreamers, a universal basic income — regular direct cash payments to a population with no strings attached — has grown in legitimacy, especially after the success of COVID-era stimulus checks. Tech visionaries racing to develop ever-more advanced artificial intelligence have also suggested implementing a universal basic income. They say it would help mitigate the job losses from AI .

Several other countries have experimented with versions of a universal basic income. Kenya, for instance, offers unconditional payments to about 20,000 people in 200 different towns.

In the United States, numerous cities and some states are experimenting on a small scale with guaranteed basic incomes , which offer no-strings-attached payments but only to select groups of people in need. While studies have shown these American programs to be successful, they have also run up against significant political opposition .

But in South Africa, most political parties are all for it. They just need to work out the details.

“The ANC is committed to finalizing a comprehensive policy on the basic income support grant within two years of the new ANC administration, ensuring broad consultation and expedited action,” South Africa’s ruling party said in a statement .

That statement came a week before hotly contested general elections on May 29, which saw the ANC lose its majority in parliament. The ANC is now working to form a unity government and a commitment to implementing a universal basic income will almost certainly come up in negotiations.

According to the party, a study at the University of Johannesburg showed that a majority of South African citizens “fully support the introduction of a basic income support grant.”

While South Africa provides payments to certain groups living below the poverty line through its Social Relief Distress grant program, the ANC plan would open eligibility to all South African adults, the Guardian reported .

The ANC said it is “exploring” options, like new tax measures and a new social-security tax, to fund the program. The party also says its goal for the program is not to replace existing social-security programs, but to complement them.

If it follows through, the ANC plan would make South Africa the first country to provide a universal basic income.

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