Business
Dollar rises on strong U.S. jobs data
NEW YORK – The dollar climbed to a two-week peak against the yen on Thursday after data showing the U.S. economy created far more jobs than expected last month, easing worries about its health entering the second half of the year.
The euro, in contrast, dipped to one-week troughs versus the dollar as European Central Bank President Mario Draghi affirmed the bank’s low interest rate policy, citing persistent downside risks to the euro zone economy.
Thursday’s events underscored the growing divergence in the outlook between the euro and dollar. The ECB is embarking on a round of stimulus measures, while the Federal Reserve is winding down its own. The U.S. non-farm payrolls report should keep the Fed on track with tapering its monthly bond purchases.
“U.S. payrolls shot the lights out and it’s substantially stronger than the trend in the last three months, which is encouraging for the dollar,” said Richard Franulovich, senior currency strategist, at Westpac Securities in New York.
“There is a sense of relief among U.S. economy bulls after a staggering contraction in the first quarter. This number suggests current conditions are much stronger.”
U.S. non-farm payrolls increased by 288,000 jobs, the Labor Department said on Thursday. April and May numbers were revised to show a total of 29,000 more jobs created than previously reported.
In afternoon trading, the dollar was up 0.4 percent against the yen at 102.20 yen JPY= after rising as high as 102.26, a two-week peak. The dollar posted its largest daily gain in a month.
The dollar index rose to a one-week high of 80.315 .DXY and was last at 80.215, up 0.3 percent, its best day in two months.
“Overall, we’re in an atmosphere of broad dollar strength,” said Lennon Sweeting, corporate dealer at U.S. Forex in San Francisco. “I think we’ll see the dollar rally against most of the majors. Specifically, we expect the euro to fall to $1.28 by December this year.”
The euro last traded 0.4 percent lower at $1.3607 EUR=, its largest daily loss in a month. Earlier, it hit a one-week low of $1.3597.
Draghi’s remarks on his outlook for the euro zone and the ECB’s view on currencies put a damper on the euro. Draghi said the risks facing the euro zone economy mean interest rates will stay low for an extended period.
“He stuck to the dovish script,” Westpac’s Franulovich said. “What was interesting was the reference to the asset purchases, which suggest that the ECB’s balance sheet is set to grow dramatically.”
Draghi also sent a warning signal about an extremely strong euro, saying the exchange rate is important for price stability and that the ECB is watching it closely.
– REUTERS
Business
Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd
Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.
The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.
Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.
According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.
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The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.
Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.
She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.
The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.
The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.
Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.
Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.
The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.
It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.
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Business
Local Firms Lead Revival of Idle Oil Wells – SPE
Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.
The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.
According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.
“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.
He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.
The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.
“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”
He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.
He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.
“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”
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Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.
According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.
He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.
“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”
Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.
“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”





