An Analysis of Shale Oil Development and its Implications for OPEC Exporting Nations : Evidence from Nigeria

The paper analyzed shale oil development in the United States and its implications for the Nigerian economy. The analyses show that recent shifts in global energy market are characterized firstly by advancement in technology (horizontal drilling and hydraulic fracking) as a result of rising global crude oil price making shale production cheaper to explore and second, increase demand from Asia. The analysis reveals an increase in global oil production, decline in U.S. oil import from the world with increased reference to Nigeria. Further, the Nigerian macroeconomy has largely been affected by the recent global shift in energy market. Oil revenue has declined alongside exchange rate and external reserves with external debt rising. The study recommends therefore that greater weight should be assigned to engineering diversification of the economy from over dependence on oil revenue to reduce macroeconomic instability