chairman's speech

SPE NIGERIA COUNCIL CHAIRMAN's ADDRESS

 
The Honourable Minister of State for Petroleum Resources & Key note speaker, Dr. Emmanuel Ibe Kachikwu, The GMD NNPC, Dr. Maikanti K. Baru, Honourable members of the National Assembly present, our distinguished moderator and former Minister of Power, Prof. Bart Nnaji, our partner, perennial sponsor and host par excellence, Dr. Bello Gusau, ES PTDF, COO G&P NNPC, Mr. Saidu Mohammed, COO Upstream NNPC, Mr. Bello Rabiu, Lead presenter, Dr. Rabiu Suleiman, STA to the HMSPR, distinguished panelists, former GEDs NNPC, COOs and Heads of parastatals in the MPR, CEOs of energy operating and service companies present, Captains of industry, our event sponsors, SPE ARD, BoT and NC officers, gentlemen of the press, distinguished ladies & gentlemen, the SPE NC welcomes you to the 18th Oloibiri Lecture and Energy Forum (OLEF), themed 'The Nigerian Oil Industry In A World of Changing Energy Supply: Are We Ready?'
The SPE OLEF is an annual lecture series focused on contributing to oil and gas policy development in Nigeria in commemoration of the first oil well drilled in Nigeria by Shell Darcy at Oloibiri, in Ogbia, Bayelsa State in 1956. It has become a forum where the SPE NC brings together the key industry players from policy / legislature, regulatory / federal executive, investors, operators, service companies etc. to discuss on topical issues in the energy industry, with a view to influencing the right policy direction to enable the growth of the industry and the Nigerian economy, thereby impacting positively on all Nigerians.
This is the 18th edition of the SPE OLEF series, and from the first edition the expansion into Deep Water, marginal fields policy, local content policy, the Gas Master Plan, Fiscal policy, cost effectiveness challenges in the Nigerian business environment, gas flaring policy, Regulations and transparency, energizing the full gas value chain (from producers to end users), amongst other critical topical issues, have helped to shape current and emerging policy directions in Nigeria.
 
The Ministry of Petroleum Resources' consolidation of a lot of these issues into the '7 Big Wins' policy document, that is being driven with such energy and passion by the Honorable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, with the support of the GMD NNPC, Dr. Kachalla Maikanti Baru and the heads of parastatals within the Ministry of Petroleum Resources, is laudable and has the full support of the SPE NC.
 
The major challenge is the stability and sustainability of these policies beyond the term of office of the key drivers, and this is where SPE and similar professional organizations like NAPE, NMGS, NSE, NAE, PETAN, OGTAN etc. can play a major role.
The SPE is a non-profit and apolitical professional organization, regulated by international best practices through the SPE International (established in 1957). We are therefore in a unique position to provide unbiased advice to the authorities for the better good of Nigeria, without the accusation of working in our own, or anyone else's, personal interest. In addition, we provide an international perspective, through both our relationship with SPEI, but especially through a lot of our members who have many decades of experience working internationally. Of recent, as noted, many policy directives the Nigerian Government has taken, are supported either indirectly by SPE NC or directly through our members who consult for both the National Assembly and the Federal Executive.
This international perspective is perfectly balanced with our local knowledge and provides a powerful tool to influence and support Government policy. In line with this, the very successful Nigeria International Petroleum Submit (NIPS) championed by the Honorable Minister of State for Petroleum Resources, and held from 18 – 22 February in the ICC Abuja, had SPE NC Resource persons supporting this event.
In line with our well-established tradition, this year's SPE OLEF is themed along a critical and topical issue ''The Nigerian Oil Industry in a World of Changing Energy Supply: Are we prepared?'
It has become clear that, with anticipated growth in energy demand, the world is rapidly moving towards an age of cleaner sources of energy. For fossil fuels, this will mean a greater reliance on gas and less reliance on oil and, especially, coal. In addition, hydroelectric and gas powered cars will replace diesel engines and, with time, gasoline engines. Add to this the growing investments in renewable sources of energy such as Solar and wind, and it becomes evident that Nigeria must rethink (or rejig)b its energy policy to solidify on the gains in the oil & gas industry (the 7 Big Wins), and leverage on these learnings to prepare for an energy mix that will become less reliant on the more polluting fossil fuels.
 
There are many opinions on how long reliance on fossil fuels will last- many of these opinions are predicated on the huge remaining resources of oil and gas. However, one must note the oft quoted statement that 'the stone age did not end because mankind ran out of stones, and the oil age will end long before we run out of oil'. The pressure from the next generation of leaders will drive technological advances that will result in less reliance on environmentally damaging energy, and we (Nigeria) must be ready now.
 
The opportunities facing us are endless, as we are still scratching the surface - For Gas, whether in the upstream, midstream or downstream sectors, there are abundant opportunities for investments. The enabling environment through ensuring security and stability of investments will attract the needed investments to unlock these opportunities. The problems with creating the enabling environment are known and are being addressed. If the passion we have seen in putting together the enabling policies (of which the critical elements of the PIB – The Governance, Host Communities, Fiscal Reforms and Downstream bills) is sustained in passing the bills and implementing all the provisions, then we will succeed in attracting the needed investments. You may say we have heard all this before, but what is different now is that we are at a stage where it would be disastrous not to deliver – the '7 Big Wins' are essentially '7 Must Wins'!!
By consolidating the gains from the 7 Big Wins, and carrying out periodic critical reviews of our progress, we ensure we can prepare an easier path forward for the growth of renewable energy in the overall energy mix for Nigeria.
 
Fate has dealt us a great hand in ensuring that we can win over and over again – an estimated 190Tcf of gas (and prospective resources that could be as high as 600Tcf) and, as if this was not enough, abundant energy from the sun and wind in many Northern parts of the country. Our country's landscape is therefore energy rich, dotted with just about any source of energy than can be thought of - we must not allow what God has provided us go to waste due to whatever circumstance holds us back from realising our full energy potential.
 
Finally, the SPE NC will continue to play a strong role in shaping policy direction and execution through ensuring that the outcome of these engagements are well documented and presented to the authorities, encouraging its members to provide the expertise in their field/s to Government either through consultancy or service, and provide/ support fora for bringing the world to Nigeria and presenting Nigeria to the world.
 
Once again, we welcome you to the 18th SPE OLEF, and wish you most fruitful deliberations, and actionable outcomes.
 
SPE NC Chairman.