The Society of Petroleum Engineers (SPE) Nigeria, the organizers of the Nigeria Annual International Conference & Exhibition (NAICE) 2024, has stated that the country requires a robust energy mix to thrive.
Speaking to journalists at the media parley after the closing ceremony of the conference in Lagos, the Chairman of SPE Nigeria, Salahudeen Tahir, and the Incoming Chairman, Amina Danmadami, both engineers, emphasized that a combination of coal, oil, gas, nuclear, and solar energy, among others, is essential for energy security.
“We need a robust energy mix to survive. If you have a combination of coal, oil, gas, nuclear, and solar, it provides energy security. If one source is unavailable, you have others to rely on. However, if you depend on just one source, and it’s not abundant, it could be problematic,” they said.
They called on the Federal Government and operators in the oil and gas industry to strictly implement the recommendations from the conference.
The gathering identified gaps and proposed solutions for energy security in Nigeria, particularly concerning the midstream and downstream petroleum sectors.
Tahir urged all industry players to adopt innovations and technologies that would ensure cleaner, cheaper, and more efficient energy supply for Nigerians.
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The theme of the conference, “Petroleum Industry Value Chain Optimization: The Inevitability of Midstream and Downstream Development,” was chosen because of the sector’s importance to the Nigerian economy.
According to him, ensuring sustainability requires the optimization of the petroleum industry’s value chain, and the development of the midstream and downstream sectors plays a significant role in achieving this optimization.
“The midstream sector involves the transportation, storage, and wholesale marketing of crude oil and natural gas, while the downstream sector focuses on refining crude oil into various petroleum products and distributing them to end consumers,” he explained.
He argued that without an effective, efficient, and vibrant midstream and downstream sector, investments in the upstream sector become meaningless.
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Supporting the call for the creation of an African Energy Bank, the duo said it has become necessary as funding options are becoming more limited.
“Yes, funds are becoming tighter, which is why there is a push to create an African Energy Bank. In Europe, they are increasingly focused on green energy, environmental governance, and social responsibility, which limits funding for oil and gas projects. In fact, some financial institutions have withdrawn from funding fossil fuel projects.
“African countries are now coming together to address the future challenges. If this trend continues, we may find it difficult to secure funds. By creating a bank where all oil-producing countries in Africa can deposit funds, we can ensure investment in our energy sector. We have already seen success with Afrexim, which is based in Egypt and serves Africa. An energy bank focused on oil and gas development could achieve even more.
“We need that energy because it is what we have. If we do not produce and refine our energy to the extent that we can use it, the upstream sector will suffer. I can assure you that the future looks bright with indigenous companies like Seplat, Aradel, and ND Western making significant progress. Rest assured, it is a bright future for oil and gas,” the petroleum engineers said.
