There are indications that the United States and other nations will soon abandon Nigeria’s oil, which may negatively affect the nation’s revenue generation.
According to the Energy Information Administration (EIA), the US may drastically reduce its import of crude oil from Nigeria by 2022, going by its projection of becoming a net energy exporter in four years. Oil Pipe In the newly released Annual Energy Outlook for 2018, EIA stated that the transition from net energy importer to net energy exporter will not take place until 2050 in some sensitivity cases.
“The transition of the United States to a net energy exporter is fastest in the high oil price case, where higher crude oil prices lead to more oil and natural gas production and transition the United States into a net exporter by 2020. “In that case, higher crude oil prices also result in higher petroleum product prices and lower consumption of petroleum products, driving decreases in net petroleum imports. “In the High Oil and Gas Resource and Technology case, with more favourable assumptions for geology and technological developments, the United States becomes a net exporter in 2020, and net exports increase through the end of the projection period. “In cases with relatively low oil prices or less favourable assumptions for geology and technological developments, US net energy trade still decreases, but the United States remains a net energy importer through 2050.”
Meanwhile, India, Nigeria’s largest importer of crude, which reduced its demand in 2017, started importing from the US.