Oil and gas are only today’s resources, not tomorrow’s Osinbajo tells Africa oil producers

Vice President Professor Yemi Osinbajo has said that oil and gas are only guaranteed as today’s resources, and not necessarily tomorrow’s. Speaking at the extraordinary session of Council of Ministers of the African Petroleum Producers’ Organisation Osinbajo said “We must keep in mind, that oil and gas are only guaranteed as today’s resources, and not necessarily tomorrow’s. We cannot bet on the fact that even a few decades from now, these natural resources will be as central to the global economy as they are today”.

He said “it is important to acknowledge, that the relationship of our various countries with oil and gas, is an interesting and somewhat complicated mode. It is for many of us, the mainstay of our economies, delivering much needed government revenues and foreign exchange to our economies. But at the same time, there is the challenge of over dependence, evident from the troubles we all went through when the price of crude oil fell dramatically in the period 2014–2015.

“The lesson here is that, while oil and gas will continue to be critical to our revenue bases and our national economies, we must also redouble our efforts to achieve the following; one, diversify our economies away from the dangerous over dependence. Two, ensure that we invest as much as is possible of today’s current oil and gas revenues, in the infrastructure and human capital that will underpin future economic growth and development.

“We must keep in mind, that oil and gas are only guaranteed as today’s resources, and not necessarily tomorrow’s. We cannot bet on the fact that even a few decades from now, these natural resources will be as central to the global economy as they are today.  All serious economies around the world have realised this, and are making determined plans for a world beyond oil, or as they say, a zero-oil world. As African countries, we cannot afford to act differently.

“Your Excellences, ladies and gentlemen, I have no doubt, that this Extraordinary Session of the Council of Ministers of African Petroleum Producers Organisation (APPO), will facilitate increased cooperation among member Countries, for the development and implementation of robust policies, and solutions focused on maximising the value in, and benefits of our oil and gas resources”.