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OPEC member countries lose $1trn oil revenue in two years

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Chinazor Megbolu

The Secretary-General, Organisation of the Petroleum Exporting Countries (OPEC), Dr. Sanusi Barkindo has said that Nigeria and other member countries lost about $1 trillion in revenue in two years.

He disclosed this at the 2021 Nigeria International Petroleum Summit, which held in Abuja, saying the loss was caused by the plunge in oil prices between 2015 and 2016.
Barkindo added the fall in oil revenue also affected government spendings and investments during the period.
He explained further that exploration and production spending fell by 25 per cent, which amounted to above $300 billion, in both 2015 and 2016.
According to him; “in terms of foregone revenues to OPEC member countries during this oil cycle, collectively about $1 trillion was lost as a consequence of the plunge in prices in 2015 and 2016.
“No member country of OPEC was insulated from such a contraction in oil revenues during this cycle. This had a severe impact on the resources available to the government to pursue its development programmes”.
Barkindo further noted that the situation was also made difficult by the Covid-19 pandemic, which impacted global oil demand, adding that developing economies were most affected as several jobs opportunities were lost during the period.
“Similarly, the 2020-21 recession was also caused by extraneous factors far beyond Nigeria’s borders.
The devastating spread of Covid-19 severely impacted global oil demand and, again, developing economies were exposed.
“There were significant job losses across the industry, as well as increasing financial and operational stresses for many companies, ” he said

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