The nigeria oil industry essay

Oil exploration in Nigeria Oil exploration in Nigeria For about 50 years are the big multinationals and the Nigerian government exploiting the Niger delta. Companies like Shell earn lots of money with this. The country earned billions with it, but the majority of the civilization are suffering from the exploitation of the Niger delta. Their social and economic rights are ignored and many people live in the bad conditions.

The nigeria oil industry essay

Oil exploration in Nigeria Oil exploration in Nigeria For about 50 years are the big multinationals and the Nigerian government exploiting the Niger delta. Companies like Shell earn lots of money with this. The country earned billions with it, but the majority of the civilization are suffering from the exploitation of the Niger delta.

Their social and economic rights are ignored and many people live in the bad conditions. History of oil exploration The history of oil exploration in Nigeria dates back to when Nigerian Bitumen Corporation conducted exploratory work in the country; however, the firm left the country at the onset of World War I.

However, neither company found oil of commercial value and they returned their licenses in The company began exploratory work in The consortium was granted license to explore oil all over the territory of Nigeria but in and then between andthe acreage allotted to the company in the original license was reduced.

Drilling activities started in and the first test well was drilled in Owerri area. Oil was discovered in non-commercial quantities at Akata, near Eket in Prior to the Akata find, the company had spent around 6 million pounds in exploratory activities in the country. Shell-BP in the pursuit of commercially available petroleum found oil in Oloibiri, Nigeria in Other important oil wells discovered during the period were Afam and Bomu in Ogoni territory.

Production of crude oil began in and ina total oftons of crude oil was exported. Towards the end of the s, non-British firms were granted license to explore for oil: Prior to the discovery of oil, Nigeria like many other African countries strongly relied on agricultural exports to other countries to supply their economy.

Many Nigerians thought the developers were looking for palm oil. But after nearly 50 years searching for oil in the country, Shell-BP discovered the oil at Oloibiri in the Niger Delta. The first oil field began production in After that, the economy of Nigeria should have seemingly have experienced a strong increase.

However, competition for the profits from oil created a great level of terror and conflict for those living in the region. Additionally, Nigerian government officials have remained majority shareholders in the profits created by the production of Nigerian oil, leading to government capturing of nearly all oil production, and citizens are not seeing socioeconomic benefits, and insist that oil companies should compensate people.

Subsequently, crude oil production for refineries was reduced further to as little as 75, barrels 11, m3 per day during the regime of Sanni Abacha.

There are four major oil refineries: It is estimated that demand and consumption of petroleum in Nigeria grows at a rate of However, petroleum products are unavailable to most Nigerians and are quite costly, because almost all of the oil extracted by the multinational oil companies is refined overseas, while only a limited quantity is supplied to Nigerians themselves.

The problem The Niger delta in Nigeria is one of the biggest Niger deltas and also one of the most crowded places in Africa. In the oil-industry began to produce it commercially after Shell had found raw oil two years early.

SPDC, a daughter company, is responsible for the drilling. The arrival of these big companies have brought more bad than good for the locals. Leaking oil pipes have an devastating effect on the nature of Nigeria and they undermine the social economic rights of the Nigerians.

Industry History

De inhabitants of an certain area have the right to have clean drink water and healthcare, because of diseases caused by the oil. The Nigerians cannot fish anymore, because the water is contaminated and therefore all the fishes die.Shell D' Arcy granted Exploration license to prospect for oil throughout Nigeria.

Mobil Oil Corporation started operations in Nigeria. First successful well drilled at Oloibiri by Shell D'Arcy Changed name to Shell-BP Petroleum Development Company of Nigeria Limited. First shipment of oil from Nigeria. Shell's Bonny Terminal was commissioned.

Texaco Overseas started operations in Nigeria. Nigeria is the largest oil and gas producer in Africa. Crude oil from the delta basin comes in two types: light, and comparatively heavy – the lighter around 36 gravity and the heavier, 20–25 gravity.

Both types are paraffinic and low in sulfur. Description: Nigeria Oil and Gas Exploration and Production Industry Investment Opportunities, Analysis and Forecasts of All Active and Planned Exploration Blocks and Oil and Gas Fields to Summary This profile is the essential source for top-level industry data and information relating to the Exploration and Production industry in Nigeria.

Oil in Nigeria- a cure or curse? Africa is a region abundant in natural resources and rich in vast oil reserves. In recent years a number of African economies have seen an accelerated GDP growth rate.

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In many cases the petroleum industry has played a pivotal role in this growth. Some would see the. Analysis Of The Oil Industry In Nigeria. Print Reference this.

Published: 23rd March, Last Edited: 16th May, Disclaimer: This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. You can view samples of our professional work here. The oil and gas industry is a key part of the economic growth in Nigeria, the industry is very competitive and a bit risky, and the room for new entrant to the market is very tough and exploiting as the industry is a bit corrupt obtaining a license is very hard as well as being a major player in the industry is very tough, because NNPC is the.

The nigeria oil industry essay
Oil in Nigeria: a cure or curse?