Environmental policies and strategies in nigeria oil and gas. Since the first oil price shock in 1974, oil has annually produced over 90 percent of nigerias export income. The long, intrepid quest would take more than 10 years before the company made its first international discovery in june 1932. The price of oil shown is adjusted for inflation using the headline cpi and is shown by default on a logarithmic scale. National participation in the nigeria oil and gas industry. Nigeria energy data, statistics and analysis oil, gas. The changing role of natural gas in nigeria econstor. Royal dutch shell pioneered nigeria s oil and gas industry and remains a major investor in the west african country. The estimate for nigeria s petroleum consumption in 2015 was revised.
The most controversial spills come from pipeline blasts. History of oil and gas in nigeria free download as pdf file. Document in the authors possession, 20 september 2012. Analyzing the oil and gas sector nigeria is one of africas largest oil and gas producers, with over two million barrels per day in 20166. Nigeria may finally be able to make its oil wealth a blessing instead of a curse.
Shell has a history of over 50 years in nigeria and the largest footprint of all the international oil and gas companies operating in the country. Environment, policies, strategies, nigeria, oil and gas industry 1. The contributions of oil and gas sector to economic growth was explored in this study which includes. Interactive charts of west texas intermediate wti or nymex crude oil prices per barrel back to 1946. Each country, and even regions within countries, has its own distinct path of discovery. Spdc was the first oil and gas company in nigeria to publish data on all spills in its areas of operation online.
May 03, 2015 gabrich global is pleased to bring to you the history of the nigerian petroleum industry this week. Corporate social responsibility of multinational corporations and the development of the niger delta region of nigeria enefiok e. Nigeria s primary energy consumption was about 108 mtoe in 2011. The history of oil exploration in nigeria dates back to 1903 when nigerian bitumen. It is costly to separate commercially viable associated gas from oil, hence gas is flared to increase crude production. The paper gave a composition of the nigeria oil and gas sector. This is the region that is responsible for more than 95% of the oil and gas assets. Any agreement signed with any association of employees must contain provisions consistent with the nigerian content plan art. In 1970, the end of the biafran war coincided with the rise in the world oil price, and nigeria was able to reap instant riches from its oil production. On july 6, 1988, an explosion and subsequent fires killed 167 workers, according to. Baker iii institute for public policy, rice university.
Findings in spite of the large profits made by oil companies operating in the niger delta, the. To understand how the oil and gas industry works, it is also important to understand how it has changed over time. Transport ships will collect the oil from the fpso every. These pioneering efforts ended abruptly with the outbreak of the first world war in 1914. It also addresses the issue of environmental risks in the industry and possible accidents that may arise from its activities. However, none of these products would exist without the.
Throughout the 1970s, the government progressively increased its participation in the equity of all oil international oil companies operations in nigeria until it reached 60 per cent in 1978. Major dates in mid history of nigerian oil and gas industry. This chapter aims to present the main environmental impacts of the oil and gas industry throughout the stages of exploration and discovery of new deposits, hydrocarbon production and oil refining. Oil is used to power our vehicles, to create medicines that keep us healthy, and to make the plastics, cosmetics, and other personal products that enhance our daily lives. Crude oil prices 70 year historical chart macrotrends. The oil and gas sector accounts for about 10 per cent of gross domestic product, and petroleum exports revenue represents around 86 per cent of total exports revenue. The capitalintensive oil sector provides 20 per cent of gross domestic product, 95 per cent of foreign exchange earnings, and about 65. The discovery was made by shellbp, at the time the sole concessionaire. A case for reform in nigeria executive summary nigeria s national oil company, the nigerian national petroleum corporation nnpc, sells around one million barrels of oil a day, or almost half of the countrys total production. John england opec may be running out of cards natural gas the fuel of the future the rise of natural gas demand continued during 2017, but it was overshadowed by continued lowcost supply growth from a number of regions, such as the united states, causing global pricing to remain relatively low. Almost three years after the passage of the landmark nigerian oil and gas industry content development act the nigerian content act or nogicd act in 2010, significant progress has been made.
Most of the energy comes from traditional biomass and waste, which account for 83% of total primary production. Chapter 338 laws of the federation of nigeria 1990. Petroleum geology is the study of the origin, occurrence, movement, accumulation and exploration of hydrocarbon fuels. The history of nigeria can be traced to prehistoric settlers nigerians living in the area as early as 1100 bc. Development of nigeria s oil industry the advent of the oil industry can be traced back to 1908, when a german entity, the nigerian bitumen corporation, commenced exploration activities in the araromi area, west of nigeria. Apart from petroleum, nigerias other natural resources include natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc and arable land. Use the lexology getting the deal through tool to compare the answers in this article with those from other jurisdictions regulatory. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Get the knowledge you need in order to pass your classes and more. Nigeria s oil production is hampered by instability and supply disruptions, while its natural gas sector is restricted by the lack of infrastructure to. Why does prosperity from oil all too often fail to provide a sustainable base for economic development and poverty reduction.
This is reflected through the nigerian government initiative of increasing local content and ensuring that indigenous companies have a greater part in developing oil and gas. Ever since oil was discovered in the country in 1956. Overview nigeria, with an estimated population of 140 million, ranks among the top 10 nations in proved oil and natural gas reserves. Pdf origin and occurrence of crude oil in the niger delta. Nigeria is the 12th largest producer of petroleum in the world and also possesses the largest natural gas reserves in the continent. Over 40 percent of the countrys oil production 980,000 bbld of crude oil, and slightly over 1 million bbld of total oil and products is exported to the united states making nigeria the 4th largest foreign oil supplier to the united states in 2010. This paper attempts to highlight the areas of impact of oil on economic policy formulation in nigeria, as well as the implications and indications of the possible way forward. Introduction it is very important to note that each time environmental issues are mentioned in nigeria, the oil and gas industry readily comes to mind. An act to make provision for licences to be granted for the establishment and maintenance of pipelines incidental and supplementary to oilfields and oil mining and for purposes ancillary to such pipelines. Nigeria has oil reserves of about 35 billion barrels 5. The history of the oil industry is one of radical shifts in control and dominance. Framework paperi oil and gas resources in the federal. A paradox of plenty and resource curse have become two most commonly used phrases to describe the impact of oil wealth on the economies of producing countries.
The history of petroleum exploration around the world is colorful and fascinating. Numerous ancient african civilizations settled in the region that is today nigeria, such as the kingdom of nri, the benin empire, and the oyo empire. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of. A structured guide to oil and gas regulation in nigeria. This study examines the history, current strategies and future prospects of the nigerian. Public regulation of the oil and gas industry in nigeria ggu law. The impact of oil on nigerias economic policy formulation by biodun adedipe, ph.
Nigeria is currently the largest oil producer in africa and was the worlds fourthlargest exporter of lng in 2015. The paradox of the black gold 341 because of the con. Piper alpha piper alpha is considered one of the worst offshore oil disasters in history. A littleknown fact, even amongst nigerians, is that oil production started in nigeria over 100 years ago, in september 1909 to be precise. Oil companies, the nigerian civil war, and the origins. Ghana is an emerging oil and gas producer with enormous potential with over 5 years of commercial production healthy investment climate and stable economy to. While nigeria s oil industry welcomes chinas interest. Oil and gas exploration and production waste management. History of oil and gas in nigeria royal dutch shell oil. The role of oil and gas in nigerias economy and governance it would be difficult to exaggerate the role of oil in the nigerian economy.
Use the lexology getting the deal through tool to compare the answers in this. Overview of the nigerian oil and gas industry natural gas. It is estimated that the country has realized about 600 billion us dollars since 1956. Findings in spite of the large profits made by oil companies operating in the niger delta.
Adedipe associates limited, victoria island, lagos, nigeria. Overview of the nigerian oil and gas industry free download as powerpoint presentation. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Companies operating in nigeria harvest natural gas for commercial purposes, however most prefer to extract it gas from deposits where it is found in isolation as nonassociated gas. Foster measurement and implementation of local content.
The reason for this is that the oil and gas industry in nigeria accounts for about 90%. Major events in the history of the nigerian oil and gas. The reason for this is that the oil and gas industry in nigeria. Nigeria s head of state and commanderinchief of the armed forces is he muhammadu buhari. Read more on shell nigeria briefing notes see more from our media center find out about our sustainability performance.
An overview of the nigerian oil and gas industry local. Jul, 2011 since oil operations began, 546 million gallons of oil have spilled into nigeria s niger delta. The country also has the largest oil and gas reserves in subsaharan africa, with an estimated 37 billion barrels of oil and 188 trillion cubic feet of gas. Nigerian oil and gas industry and make it more relevant to the sustainable development of the nigerian state report by akin akinsipe 08023173582 the nigerian economy and the relevance of the petroleum industry nigeria. But over the decades it has come under fire over spills in the delta region and. Nigeria is the largest economy in subsaharan africa, but limitations in the power sector constrain growth. Read this essay on history of oil and gas in nigeria. Public regulation of the oil and gas industry in nigeria. Abstract this research is proposed to put into verification, the obvious dominant role of the oil and gas sector in the nigeria economy. A schedule to the act sets the minimum level of nigerian content to be achieved in any oil and gas. History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Status of the nigerian oil and gas industry the pib controversy. Oil 101 history of oil a timeline of the modern oil.
Obviously, in order to stay in the ground, the fluids oil and associated gas must be trapped, so that they cannot flow to the surface of the earth. A great majority of the founders of the company are from the niger delta region of the country. Hyprops nigeria limited corporatepresentation march2018. In section two, we explore the history of nigerias.
Thats the equivalent of an exxon valdez disaster happening every year for nearly 50 years. Historical and sectoral overview of the nigerian oil industry. This is an urge to know the extend to which this sector affects the economic life of the people. The nigerian national petroleum corporation and the development of the nigerian oil and gas industry. An oil trap is a nonporous rock formation that holds the oil pool in place. Jun 01, 2012 despite massive influxes of oil revenues, these nations experience stagnating economies, declining standards of living, and increasingly authoritarian and corrupt forms of government. In 1901 one of the largest and most significant oil strikes in history occurred near beaumont, texas, on a mound called spindletop. Other wastes generated, such as waste generated from pigging pipes. The west african offshore oil and gas industry has a history of exploration of more than 50 years, with international majors and smaller firms having held, and relinquished, licences all along the. Environmental policies and strategies in nigeria oil and. Eghosa osa ekhator abstract nigeria operates a command and control regulatory framework in the oil and gas sector. Nigeria has about 36 billion barrels of crude oil reserve and 19. Come browse our large digital warehouse of free sample essays.
From the time humans realized naturally occurring petroleum had myriad uses, they organized means and methods to try and collect it and utilize it to its fullest potential. When it first discovered oil in commercial quantity in oloibiri,present day bayelsa state, from oil and gas atakpu, 2007. Though predominantly on oil and gas law, this is nonetheless a veritable reference book on the oil and gas industry in nigeria. Since oil operations began, 546 million gallons of oil have spilled into nigeria s niger delta. The nigerian oil and gas industry has developed, focusing on increasing indigenous participation in the industry. A policy outlook for energy security and sustainable development.
In 2007, nigeria adopted the national oil and gas policy, which was the result of the work of the oil and gas implementation committee instituted in 2000 and based on a longterm projection of 4 million barrels of oil production per day and 40 billion barrels. Nigeria s oil and gas outlook and nigerian content sector profile pack for the iqpc webinar this presentation has been designed to provide a. In section 4, implications of oil and gas sector reform for economic development are presented. The key factor in the industry development is who controls the key asset, the oil and gas reserves. License discovered over 100m about 312ft net column of high grade oil 23 deepwater oil and gas discoveries made between 20082014 over 80% exploration success rate first significant or commercial deepwater discovery deepwater drilling in keta basins established thick reservoir presence no oil and gas discoveries made in the keta. Jan 07, 2019 a structured guide to oil and gas regulation in nigeria. Documents in econstor may be saved and copied for your. The current month is updated on an hourly basis with todays latest value. The rest is from fossil fuels 16% and hydropower 1%. Oil revenues account for about 95% of nigerias foreign exchange earnings. Nigeria is an important oil supplier to the united states. History, process and products nearly every aspect of our modern lifestyle is impacted by oil.
Over the past two decades, at least a dozen pipeline disasters have killed thousands in nigeria. However, evidence from leaked us state department documents have proven that. Most of these byproducts will be pumped back through the injection wells. What we do shell is an integrated energy company that aims to meet the worlds growing demand for energy in ways that are economically, environmentally and socially responsible. Islam reached nigeria through the borno empire between 1068 ad and hausa states. Section 5 concludes the paper with recommendations. Nigerias oil and gas revenues natural resource governance. Our founders and directors enjoy an unrivalled influence in the region, and we possess. Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts mw of electric power from existing plants, but most days is only able to generate around 4,000 mw, which is. Oil and gas resources in the federal republic of nigeria wumi iledare1 and rotimi suberu2 1. Nigeria oil reserves 36 billion barrels daily production 3m bblsd gas reserves 5 trillion cubic metres nigeria is amongst highest ranking oil producers but not a high ranking oil and gas country.