Page 7 - AfrOil Week 40 2022

AfrOil COMMENTARY AfrOil

US President Joe Biden has lobbied OPEC+ members to raise oil output (File Photo)

Nasser has long been critical of the lack of However, the SPR has reached its lowest
balance with which developed nations have level since the mid-1980s and will continue
approached the energy transition while doing to fall until the end of the year, and may drop
little to reduce reliance on imports, all while crit- below 400mn barrels with more than half of this
icising the regimes of exporting nations. Amid already accounted for under Congress-man-
the shortfall on physical markets as sanctions dated sales. This significantly limits the options
and supply chain issues persist, the tail is firmly available to the US in terms of further SPR
wagging the dog. releases.
In their joint statement, Sullivan and Deese It was perhaps with this in mind that the
reiterated the US Department of Energy’s White House statement added: “In light of
intent to “deliver another 10mn barrels from today’s action, the Biden Administration will
the Strategic Petroleum Reserve to the market also consult with Congress on additional tools
next month, continuing the historic releases the and authorities to reduce OPEC’s control over
President ordered in March.” This has delivered energy prices.” This may have been alluding to
around 850,000 bpd since June. efforts to push forward the NOPEC bill, which
They added: “The President will continue is aimed at targeting the group’s ability to steer
to direct SPR releases as appropriate to protect the market.
American consumers and promote energy secu- Such a move would need to pass through
rity, and he is directing the Secretary of Energy Congress and should it be implemented, it
to explore any additional responsible actions to would surely be the final nail in the coffin in rela-
continue increasing domestic production in the tions between Biden and Washington’s key Mid-
immediate term.” dle Eastern allies Saudi Arabia and the UAE. ™

PIPELINES & TRANSPORT
Afreximbank has pledged $200mn loan for

EACOP, Ugandan president’s office says

UGANDA THE office of Ugandan President Yoweri prepared to help back the pipeline project.
Museveni announced on October 3 that the Oramah also said Afreximbank was “willing”
African Export-Import Bank (Afreximbank) to support plans for building an oil refinery in
had agreed to provide $200mn worth of financ- Uganda as part of the LADP and was “consider-
ing for the East Africa Crude Oil Pipeline ing financing” that endeavour, the office stated.
(EACOP), a component of the Lake Albert As of press time, the statements made by
Development Project (LADP). Museveni’s office could not be confirmed.
According to the president’s office, Afrex- Afreximbank has been mentioned as a possible
imbank has already approved plans for the loan, source of funding for EACOP, and the mul-
and its CEO Benedict Oramah told Museveni ti-lateral lender does provide financing for mid-
during a recent meeting that the lender was stream oil and gas projects.

Week 40 06•October•2022 www. NEWSBASE .com P7