- Home
- Washington File
- U.S Puts Pressure on Nigeria to Diversify Economic Base
U.S Puts Pressure on Nigeria to Diversify Economic Base
- By Williams Ekanem
- Published April 4th, 2011
- Washington File
- Unrated
Nigeria’s quest to diversify the nation’s economic base from crude oil export in order to stabilize the economy must go beyond lip service if indications given by the United States to cut oil imports is anything to go by.
Nigeria sells 40 percent of its huge oil supply to the United States. It exports 281,291,000 barrels per year (771,000 barrels per day) to the United States, according to the EIA, making it one of the top exporters of crude oil to the United States.
President Barack Obama told Americans at Georgetown University last week that his administration “would boost domestic oil production, increase the use of biofuels and natural gas, and make vehicles more energy efficient.” Obama spoke against the backdrop of rising gas prices after unrest in the oil-rich Middle East, gas prices in the U.S. have shot up 50 cents a gallon this year, reaching a national average of $3.58 a gallon last week. In his address, Obama said, “We have to discover and produce cleaner, renewable sources of energy, and we have to do it quickly.” In this direction, he said his administration will construct four new advanced biofuel plants within the next two years. Obama also ordered government agencies to ensure that by 2015, all new vehicles, including hybrid and electric.
President Goodluck Jonathan at the weekend lamented Nigeria’s over-dependence on crude oil despite the abundance of other natural resources including solid minerals, vowing that his administration would insulate it from the vicissitudes of the petroleum market.
Analysts in the United States say unless the unending promises to diversify the nation’s economic base becomes a reality, America’s plan to cut its import would impinge on the nation’s oil gains. Nigeria dropped slightly from its traditional third largest exporter of crude oil to the United States to number four in October 2010 exporting 812 barrels per day, down from 1107 in the previous month. The figure made public recently shows that Canada continues to lead crude oil exports to its neighbor selling 1840 barrels per day, although it recorded a slight drop from 1936 barrels previously. Analysis of the monthly data on the origins of crude oil imports in October 2010 shows that three countries exported more than 1,000 thousand barrels per day to the United States.
The data made available by the U.S Energy Information Administration indicated that top five exporting countries accounted for 69 percent of United States crude oil imports in October while the top ten sources accounted for approximately 85 percent of all U.S. crude oil imports.
Nigeria sells 40 percent of its huge oil supply to the United States. It exports 281,291,000 barrels per year (771,000 barrels per day) to the United States, according to the EIA, making it one of the top exporters of crude oil to the United States.
President Barack Obama told Americans at Georgetown University last week that his administration “would boost domestic oil production, increase the use of biofuels and natural gas, and make vehicles more energy efficient.” Obama spoke against the backdrop of rising gas prices after unrest in the oil-rich Middle East, gas prices in the U.S. have shot up 50 cents a gallon this year, reaching a national average of $3.58 a gallon last week. In his address, Obama said, “We have to discover and produce cleaner, renewable sources of energy, and we have to do it quickly.” In this direction, he said his administration will construct four new advanced biofuel plants within the next two years. Obama also ordered government agencies to ensure that by 2015, all new vehicles, including hybrid and electric.
President Goodluck Jonathan at the weekend lamented Nigeria’s over-dependence on crude oil despite the abundance of other natural resources including solid minerals, vowing that his administration would insulate it from the vicissitudes of the petroleum market.
Analysts in the United States say unless the unending promises to diversify the nation’s economic base becomes a reality, America’s plan to cut its import would impinge on the nation’s oil gains. Nigeria dropped slightly from its traditional third largest exporter of crude oil to the United States to number four in October 2010 exporting 812 barrels per day, down from 1107 in the previous month. The figure made public recently shows that Canada continues to lead crude oil exports to its neighbor selling 1840 barrels per day, although it recorded a slight drop from 1936 barrels previously. Analysis of the monthly data on the origins of crude oil imports in October 2010 shows that three countries exported more than 1,000 thousand barrels per day to the United States.
The data made available by the U.S Energy Information Administration indicated that top five exporting countries accounted for 69 percent of United States crude oil imports in October while the top ten sources accounted for approximately 85 percent of all U.S. crude oil imports.
