How volatile oil prices impact climate change
Russia Ukraine impact on climate change, Stears

Oil and gas producers are making ridiculous amounts of money right now. 

 

 

The Russia-Ukraine crisis has caused a surge in crude oil and natural gas prices, and oil and gas producing countries and companies are skipping and smiling to the bank.

 

Key takeaways:

  • The Russia-Ukraine crisis has caused a surge in energy commodity prices. While producing countries are making money, consumers are negatively impacted by the higher inflation rates and other economic effects.

  • But, what does the crisis mean for climate change efforts? On the one hand, there’s the risk that investments in fossil fuels will increase. On the other, higher fossil fuel prices could make clean energy solutions more attractive.

  • However, the price surge enjoyed by fossil fuel producers must not distract us from the biggest existential issue of our time—climate change.

 

Iraq exported $11 billion worth of crude oil in March alone, the highest it’s done in 50 years, thanks to soaring crude oil prices. For context, from January to March 2022, NNPC has made about ₦1 trillion from oil and gas, approximately $2 billion, before subsidy deductions. And in 2021, we made over ₦4 trillion from oil and gas, roughly $8 billion. So, Nigeria isn’t benefiting from the crisis.

But, this isn’t a fair comparison given that Iraq produces a lot more crude oil than Nigeria, as it is the second-largest producer in OPEC after Saudi Arabia. Also, they don’t have the vandalism and theft issues we have. 

It’s not just Iraq, and it’s not just oil. Russia has doubled its revenues from oil, gas

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Noelle Okwedy

Noelle Okwedy

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