Nigeria was already under pressure from lower US oil imports due to the US shale boom but the closure of Shell‘s pipeline due to leakage and theft has worsened conditions for the economy
Published: November 25, 2014 at 3:23 pm EST
By: Micheal Kaufman
Nigeria is amongst those members of the Organization of Petroleum Exporting Countries (OPEC) which have suffered the most due to the US shale boom. The oil boom has allowed the US to reduce its dependability on the OPEC for oil imports. Higher oil production coupled with lower demand has led to a fall in the oil price. Since June, crude price has plummeted over 32%.
The quality of Nigerian crude oil is quite similar to the shale oil that is now produced in the US region of North Dakota, and consequently has helped to lower US’ demand for oil imports from Nigeria. This has become a major source of concern for Nigeria as the nation is currently not exporting any oil to the US, compared to exports of 1.3 million barrels per day (bpd) since February 2006.
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