Consultant faults U.S move to outlaw OPEC
THE move by United States (U.S) Congress to outlaw Organisation of Petroleum Exporting Countries (OPEC), and criminalise its membership should be regarded as a huge joke that cannot go anywhere, Dr Taiwo Idemudia, a former head of OPEC Economic Section, has said.
Idemudia, in an interview with the News Agency of Nigeria (NAN) in Lagos, at the weekened, said that the U.S law against monopoly could not be binding on other countries as "it is not compulsory that OPEC member countries should do business with U.S."
He explained that U.S lacked the jurisdiction to criminalise membership of OPEC since it also belongs to International Energy Association (IEA) which is saddled with the responsibility of ensuring that oil and gas trade was tailored favourably among member countries.
Idemudia, who was cited at a roundtable organised by the Centre for Petroleum Iinformation (CPI) in Lagos, said that if the U.S congress failed to drop the debate, OPEC could decide to trade the oil and gas in Euro and no longer in dollar.
Earlier in his paper, Idemudia said that the increase in oil and gas demand was basically due to world economic growth in China and India, among others.
Idemudia noted that the hydrocarbon prices in global market have failed to stimulate supply and expansion of the hydrocarbon production sector, adding that the OPEC supplies fell by 6000,000 bpd between fourth quarter of 2006 and first quarter of 2007.
He said that in spite of the favourable increase in crude oil supply at the international market, Nigeria's human development, environment, petroleum industry and linkages to the economy were poor.
Idemudia explained that Nigeria was producing three million bpd, a net oil exporter for 50 years and earned over $300 billion in the sector.
He suggested that for Nigeria to maximise the benefits of the sector and address the Niger Delta crises, governmnet should institute a Niger Delta marshall plan.
Idemudia also urged the government to establish Niger Delta Enterprise Commission, revamp the decaying hydrocarbon infrastructure and construct three mega refineries to be operated in same model like the Nigerian Liquified Natural Gas (NLNG).
