Shefa Engineering Provides Solution for Energy Security

Bennett Oghifo

As the world transitions to renewable energy, new technologies are being used to manage the production and distribution of gas and other fossil fuels.

According to Shefa Engineering, “Energy security has gained increasing prominence in global discussions, given the evolving geopolitical situation across the globe. Ongoing events in certain regions have highlighted the potential risks associated with heavy reliance on external sources for energy. Such vulnerabilities underscore the importance of nations safeguarding their economic futures.

“With the continuing evolution of the global oil and gas industry along with the industry’s embrace of technological advancements, it is important to ensure the effective applications of these innovations to reduce the cost of production and ensure energy security. 

“As the oil and gas industry goes through its boom-and-bust cycles, Shefa Engineering, focusing on the upstream sector in Nigeria, is making notable contributions by leveraging innovative technologies and expertise from around the world to enhance exploration techniques, drilling technologies, and production methods, with a goal to reducing the cost of production to its customers.”

From a global point of view, recent geopolitical developments have led to shifts in global oil supply dynamics, particularly in Europe.

In 2020, Europe consumed about 512 billion cubic metres (bcm) of natural gas, with 36% of that figure supplied by Russia. In the first two quarters of 2022, Russia supplied about 45% of Europe’s natural gas, as the Canadian Broadcasting Corporation reported. That figure was later slashed to 7.5% in October 2022. Another report in August of the same year on the International Monetary Fund (IMF) blog reported a 14-fold hike in gas prices across the continent, translating to inflation in the prices of basic goods.

In the context of Nigeria, an oil-rich nation with its own unique set of challenges, energy security is a multifaceted issue. The country’s abundant fossil fuel resources are accompanied by supply chain disruptions, crude oil price volatility, and the need for sustainable energy practices. Striking a balance between energy security, affordability, and sustainability is a long-term objective. Given the country’s growing population and increasing energy demands, there is a particular focus on natural gas as a major contributor to energy security.

As of 2022, Nigeria slowed down in oil production to become the fourth largest producer on the continent.  The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed that production had slowed to 937,766 barrels per day (bpd) in September. Nigeria used to produce close to 2,000,000 bpd.

The upstream sector of the oil and gas industry plays a critical role in the overall supply chain, and its significant role in kick-starting the entire value chain through resource exploration that comprises extensive geological surveys, seismic studies, and exploration drilling cannot be over-emphasised.