The United States isn't the only country experiencing extreme fluctuations in oil demand due to harsh weather conditions. Nigeria is suffering massive flooding and, as a result, energy consumption levels have drastically changed.
Bismark Rewane, chief executive officer of Financial Derivatives Company (FDC) Limited, told the online publication All Africa that because of the flooding, many citizens have had no need to consume energy. And while this has affected supply, Nigerian producers have experienced even greater threats to their production numbers, which may not be resolved for quite some time.
"Production is currently about 2.16 mbpd and it's not likely to increase if the problems of oil theft and pipeline leakages are not addressed," Rewane said. "Besides, revenue would be adversely affected if weakness in the global economy causes disruption in output levels. In that case, the deficit gap is expected to be larger and domestic borrowing would increase."
However, this is not a sentiment shared by everyone. There are some analysts that believe production could rise above 2.5 mbpd by 2013. A report in Equities.com suggests that by the end of this year, Nigerian oil demand will be at its highest point in six months. Much of the analysis depends on how strongly people feel about Nigeria's ability to resolve its current issues and get people affected by the flood back to a regular lifestyle.
Regardless, this event illustrates the importance of producers being prepared with the proper oilfield equipment for any major shift in demand. As the flooding subsides in Nigeria, it will be up to the oil companies to supply the people who went an extended period without needing oil and now all of a sudden have a tremendous need for energy.