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Discussion Starter · #1 · (Edited)
With all the challenges that we face as a nation Energy is number one. With Energy we can start to unleash God's given gifts. To positively do this I have started a movement " Nigerians for 50,000 MegaWatts" at http://nigeriansforsuperenergy.com/
Below is our ideas!!!



We believe that Nigeria is a great country with potential and needs an electrical catalyst to unleash the African Tiger.

Why 50000MW?
Energy, electricity being part of it, is the Alpha and Omega of civilization. Given our population, the goals (15,000MW, 20,000MW, and 30,000MW) currently proposed in different political and business circles does not take care of latent electrical demand. In 1999 we estimated a goal of 4,000mw and 5,600mw, we have reached those goals but still not able to survive disruptions to system. South Africa with a population of 47M generates 36,000MW, Brazil population 188M generates 90,000MW and South Korea population 49M generates 43,833MW. Nigeria population 140M would need to generate 67,021MW to be at par with Brazil the lowest per capita among the three countries.

What is the campaign plan?
1. Launching a web site and forum to share our ideas.
2. Ask for contributions to advertise our ideas.
3. Advertise our ideas. Newspaper, billboard. On-line ads
4. Have supporters wear ribbon, put ribbon on cars, house and bushiness.

What is the plan?
We believe that electricity is the foundation of a modern society and therefore we need an emergency plan or Marshall plan with a special administrator like Donald Duke “the Dreamer” a man with the audacity to dream and accomplish those dreams. Based on the current estimates of 10,000mw in current or in progress, we will need 40, 000mw to complete our goal. This translates in 1,100mw per state and Abuja. Yes we know some states may not be able to generate this amount due to logistic or cost can join with other states to meet their goal. Some states like Lagos will need double or triple that amount. Using current estimates we believe that we need $29 billion for completion of the goal. If we need to pull monies from other project to complete this goal we should because all most all of these project need electricity to work efficiently. We also need to save our selves from air and noise pollution due to generators.

1. The plan would call for all excess revenue funds to be invested in power generation.
2. The Federal government will invest $15 billion.
3. All sates, Abuja and Local governments must contribute a percentage of their net worth to the projects.
4. All banks must invest a percentage of their net worth.
5. Corporations and individual investors will be encouraged to invest in the projects.
6. Last but not least there will be a strong push for public stock participation.
7. Land for projects will be provided my state and local governments.
8. Web site to monitor all projects, Hopefully the FOI bill (Free of Information act) will be approved to ease public monitoring of projects.
9. All companies must provide free electricity and cooking gas to local communities.
10. Coal power station in Enugu with similar capacity of Tutuka, South Africa 6x609 MW.
11. Gas and oil pipeline should have backup points. For example we could have shipped Gas directly to the plants in Lagos. Same goes for oil go have been shipped on to pipelines stations any were along the line. Our pipe line should be like a Hydra (multi-head monster) that is hard to defeat.

God Bless Nigeria!!!!
 

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Discussion Starter · #2 ·
Fuel Plan

They say imitation is a form of flattery. If so, Nigeria needs to look to Venezuela to reform its fuel sector. The Venezuelan oil company, PDVSA, had decided that it was not the the crude oil export business but in the global petroleum and chemical business. So they invested in refining and retail business in Venezuela and almost all their export markets. These market include Europe, Caribbean, South America, Caribbean, Canada and United States. "PDVSA is among the leading corporations in the refining business, with a petroleum processing capacity of 3,285,000 barrels a day (1,285,000 barrels a day in Venezuela and 2 million barrels a day outside the country) through 24 refineries: six complexes in Venezuela, one in the Caribbean, eight in the United States and nine in Europe.
I would advice the New President to seek counsel of the architects of PDVSA and also look to what Mr. Putin in Russia is doing to the oil industry."

I would recommend three strategic steps to revolutionize our oil sector.
1. NNPC should be come a government/public firm with part of it shares allocated for Nigerians. This will provide the company with a new direction and ownership need for the global challenges.
2.NNPC should go on a buying spree with the aid of government funds to buy (outright or major) shares in refineries in Africa, China and United States. This will provide us with immediate source of refined products, opportunities to train our people and hard currency. Best of all this does not need the 18 to 24 months to build a refinery. This will also provide us a stop gag measure until we build more refineries. It is all about add value and we need to start doing that.
3.Start building 4 refineries and retail outlets to take care of the local demand as estimated for 2010. This will help put to rest the fuel challenges that we face as a Nation.
We have been bless with natural and human resources and it is time to use them.
God Bless Nigeria!!!!!!!!!

Here is a Profile of Venezuelan Oil Company (Source Citgo a USA subsidiary)

PDVSA Profile
Petróleos de Venezuela S.A.(PDVSA) is a world energy corporation, owned by the Venezuelan State. Its operations cover the exploration, production, refining, transport and marketing of hydrocarbons, as well as the Orimulsión®, chemical, petrochemical and coal businesses.

Resource Base
Venezuela has the largest hydrocarbon reserves in the Western Hemisphere, representing approximately half the region's reserves, which positions the country as fifth in the world in proven reserves. With the Orinoco Belt reserves, the country possesses the largest accumulation of liquid fuel on the planet.

Production
PDVSA has a production capacity, including the strategic associations and operating agreements, of 4 million barrels a day, while production exceeds 3 million barrels a day.

Refining
PDVSA is among the leading corporations in the refining business, with a petroleum processing capacity of 3,285,000 barrels a day (1,285,000 barrels a day in Venezuela and 2 million barrels a day outside the country) through 24 refineries: six complexes in Venezuela, one in the Caribbean, eight in the United States and nine in Europe.

Marketing
Venezuela generally exports 93 percent of its total hydrocarbon production. Approximately 54 percent of these hydrocarbon exports go to the United States and Canada.

Orinoco Belt
The production and upgrading of the huge extra-heavy crude reserves in the Orinoco Belt is being carried out by four strategic associations headed by PDVSA (Ameriven, Cerro Negro, Petrozuata and Sincor). Private-sector participation includes the U.S. companies: ExxonMobil, ConocoPhillips and ChevronTexaco; and the Europeans; Statoil and TotalFinaElf. Total production from these projects is planned to reach 600,000 barrels a day by 2008, following a $13-billion investment.

Socioeconomic development
PDVSA is genuinely committed to Venezuela's social and economic development, and is especially active in projects focused on health, education, environment, and local economy.

The State oil company has also begun a review aimed at integrating Social Investment into the framework of a vision of Corporate Social Responsibility that works directly with communities, and emphasizes the development of local small and medium-sized enterprises in oil-related and other sectors, especially cooperatives and microenterprises.

PDVSA in figures
Proven Reserves
Crude: 78 billion barrels
Gas: 148 trillion cubic feet

Production Capacity
Crude: 4 million barrels/day
Gas: 8.81 billion standard cubic feet/day

Refining Capacity
Domestic: 1.3 million barrels/day
Overseas: 2.0 million barrels/day

Current Production
Crude: 3.0 million barrels/day
Gas: 8.48 billion standard cubic feet/day

Orimulsion Production 6.2 million tons/year
Petrochemical Production 8.8 million tons/year
Coal Production 7.6 million tons/year
Sales 46.3 billion dollars
Exports to US: 1.5 million barrels/day
 

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Discussion Starter · #4 · (Edited)
Strike is over!!!!

Strike is over!!!!

And the only way to stop and even reverse fuel prices is to change strategy. Talking about
price will not change the situation on the ground. Labour needs to take a proactive
stands on energy strategy... I will like to see a demonstration for building refineries
than waiting for the government to increase prices and having strikes....this is getting
old!!!!


For most of the people who are "privatization supporters", the believe that private
companies only will solve our oil needs at point in time is being unrealistic. After 8
years, 240% increase in price (N11 to N65), 17 licenses granted, zero refineries working
and total dependent import. We must say that the Energy policy has been a failure. In
most places the people responsible for this failures and continuing to push this failed
approach would have been fired at year 2.:bash: :bash:



This could be a headline!!! if Nigerians as a whole, the President and labour help change
the strategy....


"President Yar 'adua Reduces Fuel To N7 Per litre, Nigeria's Economy Grows by 12%?


How did he do it? He listened to a different approach because the approach of the last 8
years was a failure!!!
They say imitation is a form of flattery. If so, Nigeria needs to look to Venezuela to
reform its fuel sector. Due to the policies of Venezuelan oil company PDVSA, the
Venezuela are able to enjoy $0.19 per gallon or N6.12. Venezuela also gives fuel to poor
people in USA and other Latin American countries. The Venezuelan oil company, PDVSA,
had decided that it was not the the crude oil export business but in the global petroleum
and chemical business. So they invested in refining and retail business in Venezuela and
almost all their export markets. These market include Europe, Caribbean, South America,
Caribbean, Canada and United States. "PDVSA is among the leading corporations in the
refining business, with a petroleum processing capacity of 3,285,000 barrels a day
(1,285,000 barrels a day in Venezuela and 2 million barrels a day outside the country)
through 24 refineries: six complexes in Venezuela, one in the Caribbean, eight in the
United States and nine in Europe.
I would advice the New President to seek counsel of the architects of PDVSA and also look
to what Mr. Putin in Russia is doing to the oil industry."

I would recommend three strategic steps to revolutionize our oil sector.
1.NNPC should be come a government/public firm with part of it shares allocated for
Nigerians. This will provide the company with a new direction and ownership need for the
global challenges. By the way we have the money in form of excess funds.

2.NNPC should go on a buying spree with the aid of government funds to buy (outright or
major) shares in refineries in Africa, China and United States. This will provide us with
immediate source of refined products, opportunities to train our people and hard
currency. Best of all this does not need the 18 to 24 months to build a refinery. This
will also provide us a stop gag measure until we build more refineries. It is all about
add value and we need to start doing that.

3.Start building 4 refineries and retail outlets to take care of the local demand as
estimated for 2010. This will help put to rest the fuel challenges that we face as a
Nation.

Background and answers
For most of the people who are "privatization supporters", the believe that private
companies only will solve our oil needs at point in time is being unrealistic. After 8
years, 240% increase in price (N11 to N65), 17 licenses granted, zero refineries working
and total dependent import. We must say that the Energy policy has been a failure. In
most places the people responsible for this failures and continuing to push this failed
approach would have been fired at year 2.
Why did they fail? I will give you some reasons.

1.Lack of a Nigerian centric approach. Simply put lack of vision.

2.Corruption and not state owned inefficiencies are responsible for our ills. Most of the
companies that are interested in Nigerian assets are government owned companies. Which
means that state own or controlled companies are profitable and efficient. PDSVA in
Venezuela is an example that currently owns 24 refineries worldwide and sells petrol at
N7 per litre.

3.It takes lots of money to play and tonnes to compete in a global oil and gas industry.
To illustrate this point the market value of Exxon Mobil is $474.12 billion, while the
Chairman, NSP Refineries and Energy Services, Prof. Anya .O. Anya one of the companies
granted license was not able to put together a mere $200million financing for a refinery.

.
And for those who want to charge western prices for petrol they should be willing to pay
western market salaries. So we can afford to buy the petrol.
The argument of paying for subsides is a non starter, because the multiplier effect on
the economy when cost of energy is low is tremendous. Energy is like no other commodity.
It accounts for a large part of cost of goods and therefore gives local companies the
ability to compete with global companies. This will lead to a reduction in imports of
different products while increasing exports for our products. This double ?barrel effect?
will more than compensate for the so called ?opportunity cost?. And we should remember
when we establish refineries at home and aboard we will not only eliminate need for hard
currency but will gain more foreign currency. For all those who keep on hoping on
?opportunity cost? they should stop listening to some foreign interest that are not
interested in our well being. If they were these same countries and institutions will
first stop stronger nations subsidies before attacking the poorer nations subsides. They
keep calling for us to stop subsidizes continue subsidize their own people. Lots of
countries provide subsides on several products. USA for example spent $20 billion in farm
subsides in 2006 making it difficult for us to sell farm products to them. USA spent $6
billion on oil and gas subsides.
Also we must remember that most of these countries subsides are actually go to affecting
the cost of goods like wheat because the cost of wheat is high. Unlike petrol where the
cost of extraction and refinery has not change a lot since crude oil was $17.48 per
barrel therefore the real subside would have not change if the government had fix and
built more refineries in Nigeria in the last 8 years. The so called subsiding is not the
same. We are not subsiding cost of product but the high price of crude(and mismanagement
of our energy policies zero refineries compared to Venezuela's 24) which today is around
$59.25 or 238% from 1999. Last but not the least, the oil that we consume local are also
not part of our OPEC quotas so we do not have any "opportunity cost".
I believe that there is need for the government to step into this issue because this is a
matter of national security. A country that cannot provide fuel for its society, with the
abundant supply of crude oil, will never improve We need to wake up and take take of
ourselves.

We have been bless with natural and human resources and it is time to use them.

God Bless Nigeria!!!!!!!!!
Joseph Inyang
[email protected]
http://nigeriansforsuperenergy.com/
 

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jbisub, i agree with you, NNPC should aim to increase its refining capacity both in Nigeria and abroad so as to become a major player in both the upstream and downstream segments of the market. As you correctly suggested, its easier to buy into existing refineries both in Nigeria and abroad. That said, Nigerian refining capacity should be doubled to over 1,000,000 bpd to start with from the current 445,000 bpd. This is the only way to ensure adequate supply and price stability in Nigeria which really should not be experiencing energy problems like these with its high oil reserves.

The New President really needs to stand up and break the back of the corrupt clique that is holding Nigeria random over its own oil. This clique is made of international oil companies operating in Nigeria as well as a few corrupt Nigerians who seem to be benefiting from some arrangement.
 
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