Some countries, including Nigeria, China, Algeria, Russia, India, Mozambique, Venezuela, Colombia and Suriname may incur economic loss of about $400 billion should ongoing global energy transition move rapidly.
A report by Natural Resource Governance Institute (NRGI) indicated that the Nigerian National Petroleum Corporation (NNPC) is signing contracts for key capital projects in the oil and gas sector.
In the report also known as ‘Risky Bet’, the Natural Resource Governance Institute (NRGI) expressed deep concern that about half of NNPC’s investments in upcoming oil projects may turn into a loss if the global energy transition moves rapidly.
Other countries where investments should be reviewed, to avoid this loss include Algeria, China, Russia, India, Mozambique, Venezuela, Colombia and Suriname, the report noted.
NRGI revealed that National Oil Companies (NOCs) risk squandering $400 billion on expensive oil and gas projects over the next decade that may only break even if the world fails to meet the Paris climate goals.
The NRGI estimated that NOCs could invest $1.9trillion over the next 10 years, meaning one-fifth of those investments would be unviable unless the oil price stayed above $40 a barrel.
Major oil companies like BP, Total and Royal Dutch Shell have already progressively lowered their long term price estimates now in the $50-60 a barrel range, while some analysts see even lower levels depending on the energy transition scenario.
