FG’s earnings from crude oil to diminish soon — Experts

Some experts in the nation’s oil and gas sector say the Federal Government’s earnings from crude oil will diminish in the next couple of years.

They made the assertion in their presentations at the ongoing Society of Petroleum Engineers Conference and Exhibitions in Lagos which began on Wednesday.

Their projections were based on limited demands for crude oil amid subsisting free-fall in the international price of crude oil.

The theme of the conference is “Natural Gas Development and Exploitation in an Emerging Economy, Strategies, Infrastructure and Policy Framework”.

Prof. Omowumi Iledare of the Department of Petroleum Economics, Louisiana State University, U.S., said the price behaviour was related to the supply and demand in the world oil market.

He urged Nigerians to think of higher domestic consumption and show fiscal responsibility.

Iledare said the country needed petroleum assets domestication that would assist local investors to diversify and grow the economy.

On the subsidy issue, he said that one could not regulate an economic product unless it was a regular monopoly.

He also urged the government to create a conductive atmosphere for new investments in establishment of modern refineries across the nation.

“If government is interested in giving employment to the younger generation, it can invest by creating a royalty subvention.

“They may have a tax holiday for investors who are interested in building refineries for a justified cause.

“At this juncture, there is nothing any investor can do without government participation in the sector, that is why it is important for the legislature to pass the Petroleum Industry Bill,” he said.