With Nigeria as the ninth largest natural gas reserves holder in the world and the largest in Africa with estimated gas reserves of 182Tcf (trillion cubic feet) as at the January 2013, compared with the total crude oil reserves of 36.8 billion barrels, is more of a gas country than a crude oil country. The nation’s gas production was less than one billion cubic feet, while the gas utilization remained at only 6.6bcfd as International Oil Companies operating in the country have continued to flare 1.4 billion cubic feet of gas across oil fields every day.
The significance of a vibrant petrochemical industry to an economy cannot be over-emphasised. The petrochemicals industry, a sub-sector of the petroleum industry, occupies a key place in the world economy. It produces the crucial raw materials and inputs of petroleum, kerosene, liquefied natural gas (LPG), diesel, ethane, plastic, rubber, yarn and other intermediary goods consumed by the packaging, electronics, automotive, construction, textile and agriculture sectors. Interestingly, Nigeria, Africa’s top oil producer, is blessed with vast oil and gas resources necessary to drive its petrochemical industry, but the enormous potential of the vital industry is being stunted by factors ranging from weak infrastructure to legislation.
According to the United Nations, the global population of 6.7 billion is expected to reach 9.2 billion by 2050. fertilizer prices made headline news at the beginning of 2008. Fertilizer is a world market commodity subject to global supply and demand and market fluctuations. This past year saw unprecedented demand for fertilizer and record prices. World price for fertilizer remained relatively
constant from 2000 through 2006, but in 2007 prices started to escalate. Prices peaked in September and October of 2008 before declining in December. Fertilizer prices increased so
dramatically for a variety of reasons Such as Rising global demand and a shortage of supply was the major driving force in price increases. Other factors putting pressure on fertilizer prices included: increasing ethanol production, higher transportation costs, a falling US dollar, and some countries curbing fertilizer exports. China, India, other Asia, Latin America and North America — combine to account for nearly 70 percent of the world’s population and over 80 percent of total fertilizer consumption while Most of the growth in the fertilizer industry is occurring in these markets, with the exception of the more agriculturally-advanced North American market where sales are historically more stable. Consumption has more than doubled in China, India, other Asia and Latin America over the past 20 years, closely matching food production trends in that time.
The oil and gas industry is a major player and contributor to global economy as it is by nature large scale and employing thousands, generating millions of dollars in associated revenue and tax income. Natural gas production in the U.S alone added $385 billion to the country GDP in 2008 and shale gas industry more than $76 billion to the U.S GDP in 2013 and is expected to add $118 by 2015 and $231 billion in 2035 to the country’s economic performance. Gas exporting countries as diverse as the U.K, Netherlands, Russia, Qatar, Australia and Indonesia have benefited from the enormous economic benefit that is the combination of the following;
According to the centre for global development (CGD), the greater use of natural gas for electricity could help lift some countries out of poverty by providing greater access to affordable and reliable power. As environmental concerns have made the use of natural gas very attractive with the surging demand in electricity becoming one major drivers of increased consumption of natural gas, global energy use for electricity power generation is expected to increase in the next 10years. Even in the U.S “the most mature” energy market, the use of natural gas to generate energy is expected to increase by two and half times by 2020. However, the greatest boost to domestic and international gas marketing opportunities has been brought out by synergies between gas utilization and electricity generation. Such synergies include.
Simply put, natural gas is integral to the 21st century global economy. The global natural gas industry employs and ensures the livelihood of millions people worldwide, for example in the U.S roughly 622,000 Americans are directly involved in the exploration, production, transportation and distribution of natural gas. The industry as whole, indirectly sustains over 2.2million additional jobs in sectors that produce and supply goods and service to the natural gas industry as well as the industry employees. Natural gas also is the feedstock for a number of industries that are the foundation of economic growth in many countries, such as fertilizers, plastics, steel, and cement. These industries’s contribution to an economy’s GDP, tax and investments funds are unrivalled.
GLOBAL OVERVIEW OF THE GAS INDUSTRY
Asia’s fast growing economies, will be the main drivers of growth in global gas demand in the next decades, forecast from the U.S energy information Administration (EIA) suggest that demand in Asian countries that are not part of the OECD will grow 4.5% between 2010 and 2035. The countries which include China, Indian, and Indonesia would see demand rise from 350 billion cubic meters per year in 2012 to 970 billion cubic meter per year in 2030 accounting for more that a third of gas demand in that period. Australia, East Africa, the Middle East and Russia have some of the largest gas resources available for the supply after North America and could potentially supply almost 280billion cubic meters per year by 2030. Four factors that will we the major drivers of future market dynamics & prices in the global market include.