With regards to the low crude oil prices in the global market which damped domestic upstream activities, there are indications that oil exploration and production have dropped in Nigeria, as the rig count, a major indicator, dipped from 16 to eight, according to the June, 2020 report of the Organisation of Petroleum Exporting Countries, OPEC just released.
The report further showed that the basket rig count of the OPEC-member States also dropped to 473 from 561, during the period. OPEC, in the report indicated that not much funds were invested to drive activities in the industry.
This development was partly attributed to COVID-19 pandemic, which has culminated in low oil prices, thus reducing investment in the industry. OPEC report further stated that not minding the huge capacity maintenance costs that Member Countries are faced with, they continue to invest in new projects and reinforce their commitment to the oil and gas market as well as to the security of supply for all consumers.
