Stories tagged with "niger delta"

Nigeria: Energy Infrastructure Firestorm

This story was originally posted 3/11/2007, here is a link to the original if you would like to see the old comment thread.

When a fire becomes sufficiently intense, its heat creates a rising column of air so strong that surrounding air is drawn into the void, creating a draft that sustains and intensifies the fire. It becomes a self-sustaining, self-intensifying organism: a firestorm. The violence in Nigeria’s delta region has become a firestorm, and the consequences of this transformation will fundamentally impact that nation’s ability to export oil. Recent events in the delta region have transitioned the violence there from a negative-feedback loop where there was a disincentive to militants to shut in too high a portion of Nigeria’s oil exports to a positive-feedback loop where militants will compete to completely destroy Nigeria’s capacity to export oil.


Figure 1: Nigerian Militants in a Speedboat

Nigeria: Energy Infrastructure Firestorm

When a fire becomes sufficiently intense, its heat creates a rising column of air so strong that surrounding air is drawn into the void, creating a draft that sustains and intensifies the fire. It becomes a self-sustaining, self-intensifying organism: a firestorm. The violence in Nigeria’s delta region has become a firestorm, and the consequences of this transformation will fundamentally impact that nation’s ability to export oil. Recent events in the delta region have transitioned the violence there from a negative-feedback loop where there was a disincentive to militants to shut in too high a portion of Nigeria’s oil exports to a positive-feedback loop where militants will compete to completely destroy Nigeria’s capacity to export oil.


Figure 1: Nigerian Militants in a Speedboat

Nigeria is a Mess and Getting Worse

Let's take an in-depth view of the the ever-worsening potential oil shock in Nigeria and its implications for US imports and world oil prices.

First, for some background. Almost of all of Nigeria's cuurent production of about 2.6/mbpd comes from the onshore Niger Delta region shown here.

 
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