Business
Global stocks knocked down by Crimea crisis
NEW YORK – Yesterday, global equity markets fell due to the ongoing crisis in Ukraine and weak data from China.
Stocks in U.S. fell over concerns that the present crisis in Ukraine could escalate which gave investors a reason to drop some of the market’s biggest trading favourites. A selloff in biotechnology and technology shares sent the Nasdaq reeling for a fourth straight session.
The dollar firmed and the euro slipped after signs of slowing growth in Germany, the euro zone’s largest economy.
The Dow Jones industrial average .DJI ended down 26.08 points, or 0.16 percent, at 16,276.69. The Standard & Poor’s 500 Index .SPX was down 9.08 points, or 0.49 percent, at 1,857.44. The Nasdaq Composite Index .IXIC was down 50.40 points, or 1.18 percent, at 4,226.39.
The Nasdaq biotechnology index .NBI, which jumped 66 percent last year, fell 3 percent, to register a decline of 9 percent since the close of March 18. Alexion Pharmaceuticals Inc (ALXN.O) was one of the Nasdaq’s biggest losers, dropping 10 percent to $149.76.
“Biotech stocks have gone parabolic over the past few months, so this is a necessary correction to that,” said Mark D’Cruz, senior investment analyst at Key Private Bank in Cleveland. “A lot of that interest came from outside traditional biotech investors, who are now being scared off. … Biotechs really have to prove themselves this year, prove that their drugs can deliver.”
Tension between Ukraine and Russia continued to simmer after Ukraine announced the evacuation of its troops from Crimea, essentially yielding the region to Russian forces. Diplomats have raised concerns about a NATO-reported buildup of Russian troops at Ukraine’s border, and there are fears Russia also has designs on Moldova, another former Soviet republic.
Investors are concerned about the potential economic fallout, and shares of European companies with big exposure to Russia came under renewed pressure. President Barack Obama on Monday began talks with European allies on a response to the crisis as the potential for more sanctions looms.
“The issue remains contained for the time being, but Obama will try and garner support for more sanctions, which will ultimately shape our view of how things can end up looking,” said Art Hogan, chief market strategist at Wunderlich Securities in New York. “This remains at the forefront of what we’re paying attention to.”
A decline in China’s manufacturing growth in the first quarter added to worries about the global economy, although it also raised hopes for new stimulative measures from the world’s second-largest economy. Markets in China shrugged off the data, and the Hang Seng Index .HSI gained 1.9 percent.
The flash Markit/HSBC China Purchasing Manager index fell to an eight-month low of 48.1 in March. The index has been below 50, the dividing line between expansion and contraction, since January. Weakness in China is a worry for investors because of its demand for raw materials and technology.
German Bund futures extended losses after the flash composite purchasing managers’ index for France jumped to 51.6 in March from 47.9 last month.
The euro weakened after data showing growth in Germany slowed in March, raising the potential for more monetary easing from the European Central Bank. Data from the euro zone as a whole dipped compared with February.
“Germany is going to determine ECB policy,” said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management in New York.
The FTSEurofirst 300 index .FTEU3, which rose 1.8 percent last week, ended down 1 percent.
The dollar index .DXY, which measures the greenback against a basket of currencies, was at 79.93 after reaching a session peak of 80.29, not far from Thursday’s three-week high of 80.354.
The euro last stood at $1.3838, down slightly after hitting a high of $1.3875 earlier. The dollar rose a notch against the yen, to 102.23 yen.
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.
ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months
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.
Business
FHC Orders NUPRC to Comply with PIA
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.”
ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products
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.”





