OPEC blames Oil Prices on Speculators again
Posted on June 24, 2008 – 2:58 pm | by vchris
Record oil prices are due to speculative investors, the sub prime crisis and geopolitics and not the result of a supply shortage according to OPEC President, Chakib Khelil.He was quoted as saying ‘The concern over future oil supply is not a new phenomenon’ in Jeddah where more than 35 countries, twenty five oil companies are schedued to take part in a summit today to be chaired by Saudi’s King Abdullah.
>>Saudi Arabia may increase its oil production beyond 200,000 barrel a day increase in July if it is required according to Saudi oil minister Ali al Naimi in Jeddah.
There is more bad news on the oil price increases as The International energy agency estimates that world oil use will climb to 800,000 a day as demand increases in emerging economies. Low production from Russia and the North Sea combined with the strife in the Niger Delta in Nigeria are all contributing factors to continued price hikes.
Other factors are Speculation, market fundamentals,Political tension in the Middle east, Increase demand from China and India,OPEC indecision,Increased consumption in US,Middle East, Attacks on oil installations in Nigeria,Govt. Regulations and enviromental considerations. Which one factor can be the most responsible for the crissis. What is the long term global implications?
>>Chevron Union Shuts Down Offices Nationwide
Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan) and Nigerian Union of Petroleum and Natural Gas Association (NUPENG) union members of local Chevron unit yesterday began strike at the Chevron’s administrative offices throughout the country .
The action has led to the closure of all Chevron offices in Nigeria but production has not been shut down and this is pending further meetings with the federal government.
Speaking with THISDAY, the branch chairman of Chevron PENGASSAN union, Comrade John Nwanosike, said; “A limited form of protest has started but we have not yet gone deep. We have not shut down the oilfields, but administrative functions are affected,” and that until the safely conditions are addressed, the workers would not go back to work.
According to Nwanosike,”the Nigerian government is not implementing their laws in the oil and gas industry, as they are allowing the International Oil Companies (IOC) to walk away with a lot of broken laws.
“Till now, the expatriate occupy 77 percent of the top management position, leaving Nigerians with only 23 percent and the union has put their feet down to demand for equal right and privileges, as Nigerians are put in the fore front to take all kinds of risk and yet they are not being given the same opportunity.
“The Managing Director is taking the Nigerian staff for granted, as there is a heavy influx of expatriates into the company, denying Nigerian staff the opportunity to grow.
“Ignoring the performance of the Nigerian staff, so as to enable the expatriates to come in to do jobs meant for Nigerians.”
He also revealed to THISDAY that for more than 15 years now, many Nigerians are still being treated as casual staff and the company has failed to permanently staff them, leaving them open to uncertainties.
He went to say that until these issues are cleared and the expatriate managing director is transferred, the offices would remain shut and activities would not be allowed to go on.
General Manager , Government Policy and Public Affairs of the company, Femi Odumabo, who confirmed that there is a work stoppage however disclosed that the management was working hard to resume dialogue, as there was some bit of progress in the earlier meeting.
“We hope to continue with this dialogue to ensure that things get back to normal, for now, production is not affected but it is speculative that there would be further implications of this exercise,” he said.
Meanwhile, last week, the union deputy Secretary General, Lumumba Okugbawa, told the press that the situation would be evaluated and necessary action would be taken . He said this after the union met with the management. The union had said it was seeking to avoid strike action at the local unit of Chevron
In April, a strike by an oil workers union at ExxonMobil’s unit in Nigeria shut down nearly all the company’s 800,000 barrels per day production in the country.
Source: www.thisdayonline.com
By Fidelia Okwuonu
You must be logged in to post a comment.