The current insufficient supply of petroleum products across the world could continue or even worsen in the coming months, as the European Union proposes a fresh wave of sanctions on Russia’s oil supplies for its war on Ukraine. Despite being a bloc whose import of oil from Russia is around 3.5 million barrels daily, the EU is considering placing an embargo on all crude oil imports from Russia in six months and refined petroleum products by the end of the year. It follows that were this proposal to go through, the EU will require oil producers that can step into the gap. For some time now, African oil and gas producers have been suggested as the alternative. However, that hasn’t panned out as imagined. The Organization of Petroleum Exporting Countries which could provide some solutions appear to be incapacitated in guaranteeing the output of its member states. Some members have been struggling to deliver the required quotas. While Iraq has seen a significant increase in the volume of its export, others like Libya, Nigeria and Saudi Arabia have seen their production decline. On Thursday’s edition of Business Edge, Tolulope Adeleru-Balogun takes a look at the persistent stagnation of the global oil supply. She’s joined by Desmond Agboifo, energy expert and Director of Desyton Energy.
Even prior to the outbreak of war, Russia and Ukraine have been the leaders in the export of wheat, fertilizers as well as oil and gas. The almost instant backlash witnessed and impact on African countries whilst expected, is also unprecedented. This is according to Agboifo who believes that the recent investment in fertilizer plants and oil and gas refineries is a pointer to the fact that there is a gap needed to be filled. He also points out three key areas where the pressure is being felt the most in Africa: fertilizers in places like Egypt and Kenya, oil and gas across the continent as well as in education, where the majority of the foreign students in Ukraine are from African countries.
Watch the full show above.