OPEC does not have capacity to boost production: Nigerian minister

ABUJA, Nigeria – The Organization of the Petroleum Exporting Countries (OPEC) is not in favor of high crude oil prices, but it does not have any extra capacity to boost production, according to Nigeria’s state minister for petroleum resources.

“It is not something that you can open a tap for at this point. You must have the additional capacity, the idle capacity to bring on, but it takes a lot of work and a lot of investment for it to have additional production,” Timipre Marlin Sylva said.

The oil production of most countries, including Nigeria which is also an OPEC member country, is already at a peak, he said, emphasizing that criticism aimed at OPEC was misplaced.

“If there is anything we can do to produce more, OPEC will be the first to produce more. But unfortunately, this capacity doesn’t exist in most OPEC countries,” he said.

OPEC takes no pleasure in seeing high oil prices and wants them at a level that would be optimal for both consumers and producers, Sylva asserted.

A lack of investment in the sector was one of the reasons for the capacity limit, he said, defending a slower energy transition in a bid to ease prices.

Sylva underlined that investments were pulled out from the global oil and gas sector quickly without putting an alternative in place.

“We are not against energy transition, but let it be a gradual process. Let us carry on a little bit slowly. We will get there, but let’s make sure we are able to take all factors into consideration before we move,” he said.