Here is why this discovery of huge oil deposit by Shell may not be a good news for Nigeria
Shell Offshore Inc, a subsidiary of Royal Dutch Shell, announced a “significant” discovery at the Leopard prospect in the deepwater U.S. Gulf of Mexico.
The Leopard well encountered more than 600 feet of net oil pay at multiple levels, according to Shell, which said evaluation was ongoing to further define development options.
An oil discovery in the U.S. takes the major oil consuming nation far away from crude exporters like Nigeria.
The U.S. has, at some points, imported about one million barrels of crude per day from the West Africa nation.
It has deep-cut the consumption level from the Africa’s biggest crude oil exporter to below 20 per cent and this latest discovery is expected to boost self reliance and may spell trouble for Nigeria and other suppliers.
Meanwhile, the U.S. Energy Information Administration (EIA) updated its Brent spot price averages for 2021 and 2022 in its latest short term energy outlook.
The organization warned, however, that its latest report is subject to heightened levels of uncertainty because responses to Covid-19 continue to evolve.