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OPEC predicts crude oil demand to increase 1m in 2011

OPEC released it’s monthly oil report yesterday which predicts and increase of 1m barrels per day for 2011, however OPEC also warns of weakening oil demand amid signs of a worldwide economic slowdown.

OPEC left its forecast for world oil demand broadly unchanged for 2010. In its monthly report, OPEC said that “global oil demand was higher than expected in the first half of 2010, supported by stimulus packages in key consuming countries. With these winding down, demand in the second half is expected to move lower,” it added.

In 2011, world oil demand growth is expected to continue at the current level of 1 million barrels a day, unchanged from the last assessment, OPEC said.

OPEC said crude oil demand in western Europe would fall by 260,000 barrels a day in the third quarter of 2010 compared with the same period in 2009 and by 150,000 barrels a day in the fourth quarter.

OPEC, whose member countries pump about 40% of the oil consumed every day worldwide, tend to have a more bearish view than the OECD’s energy watchdog, the IEA. The IEA’s report is due out later today.

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chris harrison

When it comes to economic opportunity oil rich Nigeria has some of the greatest potential in the world. They are sitting on an estimated 37 billion barrels of the black gold and rank 15th in the world in oil production. The International Monetary Fund and Paris Club relieved Nigeria of $18 billion in debt in 2008 due to the fact that politically the government has shown the will to implement market oriented reforms such as cleaning up the banking sector and resolving regional disputes over oil earnings. GDP in Nigeria has begun to rise. And as economic reform continues to take place Nigeria is poised to expand it’s global earnings potential. The oil Nigeria produces and exports is low sulfur oil with an API margin of between 29 and 47 API gravity.

If the Nigerian National Petroleum Corporation (NNPC) or any of the major oil companies that operate in Nigeria adopted new technologies for refining the heavy crude oil production and profits could be greatly expanded. For example, Viscoil Technology and Upgrading equipment could increase distillate yield by 10 to 30%. Sulfur content with Viscoil tech could be decreased by as much as 10%. Coke content by 8 to 15%. Viscosity by 25 to 50%! The overall fuel cost by 3 to 5% and this all means an expected increase in profits from oil products of between $6.00 to $11.00 per barrel a day. Potentially Nigeria has the opportunity to increase profits from oil by up to 60 billion dollars. In the Niger Delta alone profits would rise over $2 million dollars a day. That’s $740 million over 30 years. The beautiful thing about Viscoil Technology is that due to the hydroacoustic vibrations and the breakdown of the heavy crude in the modification chamber API yield is far greater than with normal heavy crude. Within months of using the new technology companies will see an immediate increase in profits.

This increase could be substantial for a country such as Nigeria where even with free government supported education secondary school attendance is less than 35%. A country where diseases such as AIDS, malaria, typhoid and yellow fever are rampant could bring more health related services to it’s people. Education and good health bring with it in turn more freedom and a better standard of living. A rising tide lifts all boats. That’s why Viscoil adaptation is pertinent to the future of Nigeria and the oil industry as a whole. If Nigeria was to adapt to a 30 year program with Viscoil Technology there would be 60 billion dollars in expanded profits. This in turn could be financed at 4% annually and ten times more could be made on it. 600 billion dollars is a lot for Nigeria and it equates to a lot of new jobs and a lot of motivated educated young people. More young people would have solid jobs instead of pursing lives of crime and drugs. There is also the potential for China to show more interest in Nigerian oil. Bringing with it many new job opportunities. Essentially Nigeria is on the upswing but it can only go higher with the adaptation of Viscoil Tech. Nigeria as Africa’s largest exporter of oil and one of the U.S.’s most favorable trading partners is sitting in the cat bird seat. All they have to do is act upon it.

I hope this peace of information would be taken by the Nigerian government

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