Nigeria along with other African oil and gas producing countries are under mounting pressures over a global energy transition that is at once in acceleration, says a new report from the global consulting firm, McKinsey and Company.
The report says most of the countries affected, including Nigeria, Angola, Equatorial Guinea, South Sudan, Ghana, Libya, and Algeria, among others, are exposed to the global energy transition as their economies are highly dependent on oil and gas revenues, against the background of a global momentum building for sustainability.
McKinsey said Nigeria and the other producers in the continent have reserves that cost more to produce and are, on average, more carbon-intensive than oil and gas from other regions.
The report titled, “The future of African oil and gas: Positioning for the energy transition”, noted that Africa is also pressured by the fact that its energy demand threatens to outstrip supply, projecting that while the energy transition will see Africa’s crude and condensate production fall from 6.5 million barrels per day (2021) to 2.5 million barrels per day in 2040, demand is expected to grow by 1.4 percent over the next two decades.