The changes in the global energy landscape have made it imperative for the oil and gas industry to adapt accordingly to maintain relevance, remain competitive and thrive.
Mr Auwalu Sarki, the Director, Department of Petroleum Resources (DPR), spoke on Tuesday at the virtual opening ceremony of the Energy Industry Transformation Summit (NEITS).
It was organised by the Society of Petroleum Engineers (SPE), Nigeria Council.
Sarki said the theme of the summit “Changing Global Energy Landscape: Strategies for Industry Sustainability’’, was not only relevant and germane, but timely and apt as well.
“The scene of the world is changing rapidly, and the industry must respond and adapt accordingly to survive, maintain relevance, remain competitive and thrive,” he said.
According to him, the oil and gas industry has been affected by a combination of factors including, changing demography with a resultant shift in energy supply and demand equilibrium.
He added that globalisation and geopolitics, climate change and drive for alternative energies, as well as technology and innovation, had also affected the industry.
“More recently, the effect of the ‘Triple force’ of COVID-19 pandemic, Oil Price Crash and OPEC+ production cuts have demonstrated the compelling need for new thinking and approach for strategic repositioning and business optimisation in the industry,” Sarki said.
The DPR chief said the agency had adopted several approaches and streamlined its processes to deepen its influencing role as an opportunity house and business enabler for the industry.
He said the approaches included cost control and management, strategic partnership, vertical integration and diversification and portfolio rationalisation and operational resilience.
Sarki noted that DPR was proud to be associated with the SPE, which had the ideals and vision of enabling the industry to meet the world’s energy demand in a safe, environmentally responsible and sustainable manner.
In his remarks, Mr Joe Nwakwue, Chairman, SPE Council Nigeria, said the world was gradually shifting to cleaner sources of energy due to environmental impacts of oil and gas activities.
Nwakwue said: “Awareness and policy geared toward renewable energy use and energy efficiency are spreading. These places a potential cap to oil and gas demand in the future.
“The impact of this transition toward a low carbon economy on energy-deficient and energy-hungry countries like Nigeria (where enhanced energy access and availability is crucial to human wellbeing and country’s economic growth and development), is a subject of great concern for sustainability.
“Consequently, there is a tendency of having rapid evolution and adoption of renewable energy technology (solar and wind), thereby reducing energy costs, changing lifestyles and habits by our large youth population.
“All these are expected to impact the economic futures of the affected countries and the future of Energy.” (NAN)