The Organisation of Petroleum Exporting Countries (Opec) lost $1 trillion to dwindling oil prices between 2014 and 2016, official said.
Opec Secretary-General Mohammed Barkindo said the member countries could not earn about $1 trillion of oil revenue.
Dr Barkindo, said on a visit to Nigeria the industry further lost $1 trillion in terms of deferred projects and outright cancellation of projects across its entire value chain.
“We need consistent investments in order to maintain current production and take care of reserves and secure future supplies,” he said.
A joint supply
The Opec chief said it was agreed that non-members be invited to build a platform of 24 producing countries to agree on a joint supply, seeking to adjust about 1.8 million barrels a day.
“For the first time in history, we were able to build a platform of 24 producing countries within six months in order to address the stock overhang which has been the variable to the supply equation that had sent this market off balance since 2014.
“We are on the course to pulling this industry out of the worst recession. We have entered to restore stability to the market on a sustainable basis that will allow investments to come back on a continuous basis,” he said.
Remains a miracle
Dr Barkindo commended the Nigerian government for staying afloat during the price-crash, calling the period “the worst energy circle in recent memory’’.
“How you survived as a government and as institutions under this great industry remains a miracle.
“I visited all other countries and I have seen how they struggle but you have weathered the storm, I think the worst is behind us.’’
He said the agreements reached by the cartel and non-Opec members in Algiers and Vienna during their meetings in November and December 2016 were lifesaving measures as they had overcome market challenges.
Dr Barkindo said he had to insist on reducing his entourage to Nigeria, because everyone was willing to come and see first-hand “giant strides’’.
He commended Nigeria’s Petroleum minister, Mr Ibe Kachikwu, for building the confidence of Opec members and earning their respect saying, “the minister was able to convince Opec member countries to drop their candidates for his candidate.
“That shows the level of respect they have for him, for him to have persuaded sovereign nations and say I have a better candidate.