IOCs disagree with Kachikwu on freezing oil supply to spur price rebound

International Oil Companies (IOCs) and energy experts, yesterday, stated that freezing the supply of crude oil alone as suggested by the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, would not likely lead to a rebound in the price of the commodity, stating that other factors needed to be considered also, Vanguard reports.

Speaking at the ongoing Sixth African Petroleum Congress and Exhibition (CAPE VI) in Abuja, the IOCs and the energy experts disclosed that due to inefficiencies in terms of energy use, the demand curve at the moment was not what obtained in the past and would hamper a rebound in oil prices to levels seen in the past.

Specifically, Mr. Clay Neff, Chairman, Oil Producer Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) and Chairman/Managing Director, Chevron Nigeria Limited stated that effective collaboration between producing and consuming countries, IOCs and all stakeholders in the oil and gas industry was critical in overcoming the current challenges facing the petroleum industry.

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