It is good that you shared the information with this network. Hopefully now those who do not understand the gross negative impacts of rapidly tumbling crude oil and gas prices and global economic realities for oil and gas revenues dependent national economies get the picture clearly. I had stated previously that Nigerians should rationalize their expectations with respect to the first two or more years of the Buhari administration. The Nigerian economy had not been diversified sufficiently over past decades and positioned to weather even minor changes in average crude oil prices that would drop them to less than $80 per barrel. Some of the crude oil prices have gone below $39 per barrel! I have not even added the insidious impacts of gross thefts of national resources, money, oil piracy and vandalism in my considerations that are well known and common aspects of oil business in Nigeria.
The fact that the Saudi Arabia Kingdom is making this move clearly emphasizes that countries like Nigeria have to apply realistic belt tightening measures such as scrapping the oil subsidy and other unnecessary, unprofitable national loopholes for financial drainage and thefts as soon as possible. It was reported in April/May 2015 that the Nigerian foreign reserve of about $37 billion had dwindled to about $29 billions within 6 months. In my keynote address at the 4th International Downstream Conference of August 2015 I had shared the information that Saudi Arabia was drawing down at the rate of $12 billion per month from its staggering foreign reserve of $750 billion due to plunging crude oil prices. . I must add though that the Kingdom is one of the most admired country for its management of its economy and sharing of its wealth with its citizenry. The Kingdom has had major petroleum and petrochemical projects and assets that will significantly pare its reliance on earning foreign reserves through oil and gas exports. Saudi Arabia is poised to own significant equities in over 8MMBPD (millions barrels pr day) in oil refining capacity within a decade!On Mon, Dec 28, 2015 at 6:26 PM, 'Ikhide' via USA Africa Dialogue Series <usaafricadialogue@googlegroups.com> wrote:
--"Saudi Arabia will raise domestic petrol prices by up to 40 per cent, AFP has reported, citing the kingdom's state press agency, SPA.Initial reports suggested the increase in petrol prices is imminent.The change comes amid a raft of measures to combat the kingdom's record budget deficit of $98 billion in 2015."- Ikhide
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