OPEC Oil Supply Shortfall: Nigeria, Angola Account for Half
A report has said that Nigeria and Angola accounted for almost half of the Organisation of Petroleum Exporting Countries (OPEC) and its allies’ shortfall in planned oil supply.
In the report, Reuters said this was a reflection of a number of factors that collectively affected crude production on the continent alongside moves by Western oil majors away from African projects.
The OPEC+ figures showed that the organization and its allies only pumped 1.45 million barrels per day (bpd), which is equivalent to 1.5 percent of world supply. This was below its target in March.
Analysis of the figures showed that Angola contributed almost 300,000 bpd of the OPEC+ supply shortfall while Nigeria pumped almost 400,000 bpd below target.
The Russian-Ukraine war has also affected Russia’s oil production and distribution as its output was about 300,000 bpd short of its March supply target.
The OPEC+ shortfall is one of the reasons global oil prices hit a 14-year high in March above $139 a barrel and it has prompted calls by the United States and other consumers for producers to pump more.
However, OPEC has severally pushed off the calls by the UN because some of its members do not have oil available to pump.
According to OPEC, investment cuts after oil prices collapsed in 2015-2016, due to oversupply, along with a growing focus by investors on economic, social and governance (ESG) issues, have led to a shortfall in the spending needed to meet demand.
The OPEC secretary general, Mohammad Barkindo, told Reuters that “There was massive underinvestment in the industry over the years, further complicated by the effect of environmental, social and governance (ESG).”