Market News

By Mohammed Shosanya

LAGOS  – Energy experts have advocated the need for increased sustainable practices in the global oil and gas industry. 

They said, reducing emissions does not necessitate abandoning oil and gas but rather requires the adoption of cleaner technologies and sustainable practices. 

They disclosed this at webinar titled,“Transitioning Away from Emissions, not Oil and Gas,” organized by the Nigerian Institution of Petroleum Engineers (NiPeTE) and the Lagos Chamber of Commerce and Industry Professional Practice Group (LCCI PPG), through online discussions. 

They discussed the role of oil and gas in global emissions and also profers solutions it can be addressed. 

Speaking, Dr Nuhu Habib, former Executive Commissioner for Development and Production at the Nigerian Upstream Petroleum Regulatory Commission,(NUPRC),noted that while oil and gas production contributes to emissions, it is not the largest source of global greenhouse gases. 

According to him,oil and gas will remain key drivers of the global economy for at least the next fifty years. 

He said oil and gas account for only about 15% of industrial emissions, emphasizing that the real challenge lies in addressing the broader industrial activities that contribute to greenhouse gases. 

He advocated the need for a focus on reducing emissions overall rather than solely targeting oil and gas production, which could negatively impact the global economy. 

He also criticised the incomplete financial commitments under the Paris Agreement to support African nations in climate change mitigation, stressing the importance of genuine international collaboration and commitment. 

Mr Gabriel Idahosa, President and Chairman of the Council at LCCI, highlighted the significant emissions from gas flaring and other petroleum activities in Nigeria, which exacerbate climate change and affect public health. 

He called for innovative approaches to decarbonize the economy while maintaining the growth and stability provided by oil and gas resources. 

He noted that the oil and gas sector is vital to Nigeria’s economy, accounting for about 90% of export revenues and approximately 60% of government revenue. 

According to him,Nigeria’s CO2 emissions reached around 120 million tons in 2023, underscoring the environmental impact of its energy sector. 

He stressed the need for a robust policy and regulatory environment to support this transition. 

Recognising the Petroleum Industry Act as a positive step, Idahosa advocated for additional measures such as carbon pricing, tax incentives, and stricter environmental regulations to promote clean technologies and sustainable practices. 

Engr. Prisca Kanebi, the National Chairman of NiPeTE, emphasized the importance of balancing global greenhouse gas reduction goals with Nigeria’s development needs. 

Dr Mohammed Malami, Planning and Commercial Research Officer at Gas and Power Investment Service, NNPC Ltd., called for the strategic integration of low-carbon technologies and improved operational efficiency to reduce emissions without eliminating oil and gas entirely