Nigeria’s Rig Count shows Marginal Increase, as OPEC Records Plus 4

-By Fred Ojiegbe

Nigeria posted a marginal rig count increase of one in November, having recorded eight, as against seven recorded in October, latest data from the Organisation of Petroleum Exporting Countries, OPEC showed.

This is happening at a time OPEC posted plus four, as its rig count in November showed 329 as against 325 posted in October. However, world rig count showed a higher increase of 58, as its November figure showed 1,193, as against 1,135 posted the previous month.

Among the 13 – member OPEC, North African country of Algeria led with an increase of five, as it recorded 29 in November, as against 24 recorded in October. It was closely followed by Libya, which had an increase of 4, having posted a figure of 12 in November as against eight posted the previous month. Kuwait followed with an increase of two, as its rig count in November showed 31, as against 29 posted the previous month. Angola and United Arab Emirates (UAE), had plus one each. While Angola had three in November, as against two in October, UAE had 41, as against 40 recorded within the period under review.

Saudi Arabia, the biggest producer among OPEC members recorded a dismal minus 10, in its rig count, having recorded 60 in November, as against 70 recorded in October. It remained the only OPEC member with a minus in its rig count within the period under review. Six other OPEC members, Congo, Equatorial Guinea, Gabon, Iran, Iraq and Venezuela had their rig count unchanged as they recorded 0, 1, 0, 117, 27 and 0, respectively.  

The United States of America had an impressive increase of 31, having recorded a rig count of 311 in November, as against 280 recorded the previous month. Canada also had a good output of plus 14, as it recorded 96 in November, as against 81 recorded the previous month. The Organisation for Economic Co-operation and Development, OECD, also had an impressive increase of 47, having posted a figure of 564 as against 517 posted within the period under review.

World Oil Demand

For 2021, global oil demand as projected by OPEC is estimated to increase by 5.90 million barrels daily, mb/d, a downward revision of 0.35 mb/d, reflecting the uncertainty surrounding the impact of COVID-19 on transportation fuels in OECD economies in 1H21. Additionally, albeit to a lesser extent, a number of weather forecasts anticipate a milder than normal winter in the northern hemisphere pressuring the middle distillates demand outlook. It also explained that generally, the 2021 oil demand outlook assumes an increase of 4.4 percent in global economic activities supporting demand for industrial fuels, most significantly in OECD Americas and China. This includes increases in infrastructure spending, as well as improving construction and industrial activities. Uncertainties around the structural impact of COVID-19 on the transportation sector, in addition to labour market developments in advanced economies, are estimated to cap the transportation fuels recovery to 2019 levels. Petrochemical feedstocks are expected to gain momentum on the back of recent capacity additions in China and the US. All products are estimated to grow year – on – year, y-o-y following the steep impairment in 2020. On the flip side, fuel efficiency gains, the continuation of oil displacement programs and subsidy removals will limit oil demand growth. Total oil demand is now estimated to reach 95.89 mb/d in 2021, OPEC added.