By Olamide Peters
The oil market is in a death spiral. This has been recognized by our Acting President, Mr. Yemi Osinbajo but still we send people to a senseless death to prospect for new sources of oil in the Chad basin.
The recent slaughter of oil prospectors from the University of Maiduguri in the Cage basin by Boko Haram and its affiliates is shameful and a sign of how cheap life is in Nigeria.
The oil market is in a long term terminal decline. This is well known. Why is there a need to find new sources when we are unable to extract and sell what we already have access to?
There are so many things that do not make sense about the Federal Government’s decision to send people to prospect in this notoriously dangerous area.
Firstly, if there were profitable oil to extract, don’t we think that the large international Oil companies would have done so when the area was peaceful and oil prices was high? There may well be oil there, but the logistics of extraction and transportation will be horrendous.
Secondly, in a period where oil prices are low and the demand for oil globally is in long term decline, why does the government consider it a valuable use of human life to prospect for more of the dying commodity? We already have more oil at our disposal than we can sell.
The only coherent reason for this prospecting is to try and find a source of oil away from the Niger Delta region in order to reduce disruption by Delta militants.
However, to think that this can be done in an area where despite many millions of dollars being spent on the military, the insurgents still roam freely is beyond stupid. Truly out of the frying pan and into the fire.
Finally, all analysts are predicting that low oil prices are the new normal.
The low price alone means that the extraction logistics for this area do not make profitable sense. Which company would pay for a license to extract there?
It was with huge sadness that Naira Insider notes that the usually sensible Ag President yesterday said that prospecting would continue.
If there are any more deaths, then those driving this senseless and dogmatic approach will have the blood of innocent citizens on their hands.