Crude oil in nigeria pdf

The light, sweet quality of nigerian crude makes it a preferred gasoline feedstock. Levels of most of the trace metals found in crude oil in nigeria are generally low except for nickel, iron, and vanadium. Nnpc sells this oil to the pipelines and product marketing company ppmc, one of its subsidiaries. Insights from new company disclosures analyzing nigerias oil and gas sector ptg reports provide citizens with unprecedented levels of relevant and timely projectlevel payment data that can be used to inform public debate on the management of nigerias natural resources. Economic advantage of incountry utilization of nigeria. Nigeria is the largest oil and gas producer in africa. With proven crude oil reserve estimates of about 37 billion barrels as at 2015. Since the discovery of the black gold crude oil in olobiri in 1956, oil became a determining factor in the economy and over took agriculture in foreign exchange earnings in the subsequent decades.

Refining in nigeria nigeria is the second largest producer of oil in africa, producing over 1. Origin and occurrence of crude oil in the niger delta, nigeria. Refining adds value through conversion of crude oil and other flows into dozens of corefined products. In 2010, nigeria exported over one million barrels per day bbld of crude oil and petroleum products to the united states 980,000 bbld of crude oil, representing 9% of u. Darke in 1859 to 1956 when crude oil was first discovered in commercial quantity at oloibiri in the present day bayelsa state in nigeria. Nigeria produces mostly light, sweet low sulfur crude oil. The global pursuit of financial inclusion as a vehicle for economic development had a positive effect in nigeria as the exclusion rate reduced from 53. The oils were fractionated by column chromatography on silica gel. Ppmc is supposed to send the oil to nigerias four stateowned refineries, sell the resulting petroleum products, and pay nnpc for the crude it received, and then nnpc is supposed to pay the government.

Currently, nigeria is the largest oil producer in africa and the production of petroleum in the country plays a dominant role in the economy with over 90% of gross earnings coming from crude oil. The paper traces the origin of oil exploration and exploitation from titusville in pennsylvania. The oil companies operating in nigeria should be made to enter into a written agreement with the government on what they will. Though nigeria crude oil reserves fluctuated substantially in recent months, it tended to increase through february 2019 january 2020 period ending at 1,995 thousand barrels per day in january 2020. This paper examines the question as to whether crude oil resource is a blessing or curse to nigeria. The current month is updated on an hourly basis with todays latest value. For the past three decades, crude oil has been a major source of revenue, energy and foreign exchange for the nigerian economy. 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. Impact of over dependence on oil revenue on economic growth. Crude oil also referred to as petroleum is a natural and sticky unrefined remain of ancient marine organisms. By the late sixties and early seventies, nigeria had attained a production level of over 2 million barrels of crude oil a day. A survey conducted in nigeria in 2008 by a development finance organization, the enhancing financial innovation and access revealed that about 53. Nigeria is probably the largest importer of refined petroleum products on the continent, creating a lucrative refinery market in europe and the united states. Impact of over dependence on oil revenue on economic.

Interestingly, this high valued and volume of crude oil is produced from just 7. Pdf origin and occurrence of crude oil in the niger. Nigerian nation, living in the sixth worldwide importer of crude oil could not be haracterized. It is reported by the bloomberg agency as it concerns the ministry of petroleum resources of the country. The price of oil shown is adjusted for inflation using the headline cpi and is shown by default on a logarithmic scale. The government and policy makers can adopt the following measures to solve the problem of oil spillage in nigeria. Following the discovery of crude oil by shell darcy petroleum, pioneer production began in 1958 from the companys oil field in oloibiri in the eastern niger delta. Department of petroleum resources crude oil terminal operations crude oil and gas terminals in nigeria western zone operations supervised by dpr warri zonal office sn terminal type platform product capacity bbls operator 1 ukpokiti offshore fpso crude oil 1,970,258 expresssheba 2 ea sea eagle offshore fpso crude oil 1,479,858 snepco. This study examined the impact of crude oil price changes on economic growth in nigeria. Download the full project from chapter one to five with reference and abstract. Darke in 1859 to 1956 when crude oil was first discovered in commercial quantity at. These oil producing states include abia, akwa ibom, bayelsa, delta, edo.

This was the first time crude oil was discovered in commercial quantity at oloibiri in the present day bayelsa state in nigeria tamuno, 2006. The story of indegenous banking in nigeria began with the establishment of the national bank of nigeria limited in february 1933. India is the largest purchaser of nigerias oil which fulfills 20% to 25% of indias domestic oil demand. History, process and products nearly every aspect of our modern lifestyle is impacted by oil.

Indian oil companies are also involved in oil drilling operations in. The oil spills affected at least 1500 communities in the eight crude oilproducing states in nigeria, and were mainly from the 5284 oil wells that were drilled as at 2006 and the 7000 km of crude oil pipeline that crisscrosses the niger delta region. Mar 11, 2020 nigeria is vulnerable to a prolonged period of low oil prices but it should take the opportunity to deregulate downstream and reform the excess crude account. Oil politics has become a critical issue in nigerias body politics. Origin and occurrence of crude oil in the niger delta, nigeria article pdf available in journal of petroleum science and engineering 612. This research focuses on the analysis of importation and exportation of crude oil products measured in.

Now lets take a look at the oil producing states in the country. This small part of the country that produces this is known. Nigerias oil theft epidemic join our community although crude oil theft has long been the subject of intense media attention in nigeria, the downstream theft. Pdf crude oil and the nigerian economic performance. Nigeria s petroleum industry is well grounded in successful exploration, beginning with the first commercially viable discovery at oloibiri in the niger delta in 1956, with a modest production rate of 5,100 barrels per day. However, none of these products would exist without the. The country takes the first place in africa and the eighth place in the world among crude oil exporters. Because it is responsible for 90% of the countrys export earnings, it is a powerful foundation for the nigerian economy. In february 2020, production of crude oil for nigeria was 1,742 thousand barrels per day. Top locations of crude oil in nigeria nigerian finder. Ten crude oil samples were collected at stratigraphic depths ranging from 4646 to 9877 ft in four producing fields of the onshore and offshore niger delta. Indeed, the business of bunkering illegal oil, or blood oil, involves players far beyond the shores of nigeria and will require an international effort to control it. Although production figures dropped in the eighties due to economic slump, 2004 saw a total rejuvenation of oil production to a record level of 2. This area could contain up to, or over, 14 billion barrels of oil citation needed.

European countries are the largest importer of nigerian crude oil, imported 41% of total in 2015, followed by asia 28%, americas 16%, and africa 15%. The assessed date range will typically stretch to the equivalent date of the following month. Shell also owns the forcados terminal, which is capable of storing million barrels 2,100,000 m3 of crude oil in conjunction with the nearby bonny terminal. The oil price fall and the impact on the nigerian economy. Though nigeria production of crude oil fluctuated substantially in recent months, it tended to decrease through march 2019 february 2020 period ending at 1,742 thousand barrels per day in february 2020. Crude oil contribute about 80% to nigeria government revenue. Pdf origin and occurrence of crude oil in the niger delta. Nigerias petroleum industry is well grounded in successful exploration, beginning with the first commercially viable discovery at oloibiri in the niger delta in 1956, with a modest production rate of 5,100 barrels per day. Nigeria is vulnerable to a prolonged period of low oil prices but it should take the opportunity to deregulate downstream and reform the excess crude account. Includes crude oil, shale oil, oil sands and ngls the liquid content of natural gas where this is. To achieve this however, diversification from the economic over dependence on crude oil is required. Shell owns two, while mobil, chevron, texaco, and agip own one each. Crude oil prices 70 year historical chart macrotrends. Chemical fingerprinting of two crude oil samples ebocha and kwali crudes from niger delta region of nigeria were carried out and hydrocarbon range of nc8h18 to nc40h82 were obtained.

Crude oil is indeed nigerias backbone, and the country remains one of the largest oilproducing countries in the world and indeed, the highest in africa. Nigeria has proven reserves of about 32 billion barrels of predominantly low sulphur light crude, which at current rate of exploitation could last another 38 years. The story of indegenous banking in nigeria began with the establishment of the. Although production figures dropped in the eighties due.

The importance of crude oil in nigeria can not be overestimated. Impact of over dependence on oil revenue on economic growth of nigeria. May 2020 north sea dated brent platts north sea crude oil assessments reflect the value of physical crude oil loading 10 days forward from the date of publication to one full month ahead. The human health implications of crude oil spills in the. United states of america where the first all well was drilled by edwin l. However, nigerias crude oil samples have a very low content of salt, which make them favorable targets for both local and international marketers cani et al. How coronavirus and the global oil price war can impact. Nigeria, the largest crude oil producer in africa, is a. The intention is to expand the reserves to 40 billion barrels and production capacity to 4 million barrels per day mbd. Nigeria, the largest crude oil producer in africa, is a major. Currently, there are six petroleum exportation terminals in the country. Nigerias oil industry began with the discovery of crude oil reserves by the shell group in 1956. Subsequently, crude oil production for refineries was reduced further to as little as 75,000 barrels 11,900 m 3 per day during the regime of sanni abacha.

Importance of crude oil in nigeria today last month, nigeria slightly increased average daily oil production, bringing it to 1. Nigeria become a net exporter of refined products and the refining hub of west africa by the start of the next decade. Some of the more common crude oil grades that have regular price assessments are. 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. Eias petroleum and other liquids supply estimates for nigeria include crude oil, condensate, natural gas plant liquids ethane, propane, butane. For the last nine years, the united states has imported between 911 percent of its crude oil from nigeria. Economic advantage of incountry utilization of nigeria crude oil. The trade doesnt just benefit the federal government, but also benefits every business savvy individual interested in the oil and gas industry, as the lucrative nature of crude oil marketing in nigeria has given rise to a vast number of crude oil brokers who strive daily to source genuine crude oil buyers searching for genuine crude oil. In january 2020, crude oil reserves for nigeria was 1,995 thousand barrels per day. In this study, the carbon preference index cpi and the degree of waxiness of the two crude oil samples were calculated. The production of petroleum in nigeria plays a very important as over 90% of the countrys gross earnings comes from crude oil. Nigeria is an oil producing country and crude oil is an important asset to its economy.

The oil spills affected at least 1500 communities in the eight crude oil producing states in nigeria, and were mainly from the 5284 oil wells that were drilled as at 2006 and the 7000 km of crude oil pipeline that crisscrosses the niger delta region. The origin of oil exploration and exploitation started in 1859, where the first oil well was drilled by edwin l. Oil fractionation and gas chromatographymass spectrometry analyses. Crude oil was first discovered in commercial quantities in nigeria in 1956, while actual production started in 1958. Nigerias oil theft epidemic join our community although crude oil theft has long been the subject of intense media attention in nigeria, the downstream theft of hydrocarbons has remained under. Looking beyond oil 9 crude oil production waiting on sector reforms the impact of the low oil price in terms of production has been relatively capped but remains high risk. Additionally, the broader issues of underdevelopment and overmilitarization of the niger delta, as well as the regions. Pdf for the past three decades, crude oil has been a major source of revenue, energy and foreign exchange for the nigerian economy. The physical and chemical components of nigerian crude oil. These oil producing states include abia, akwa ibom, bayelsa, delta, edo, lagos, imo and rivers. How coronavirus and the global oil price war can impact nigeria. Interactive charts of west texas intermediate wti or nymex crude oil prices per barrel back to 1946. Crude oil refining is a unique and important link in the supply chain of petroleum products from the wellhead to the end user.

Proved reserves of crude oil as of january 1 of the report year are the estimated quantities of all liquids. Acknowledging the difficult context of oil operations in nigeria does not, however, absolve the oil companies from a share of responsibility for the human rights abuses taking place in the niger. These grades are valued differently by refiners based on their crude qualities. Pdf being rich with crude oil and other numerous natural resource, nigeria is potentially among the richest countries in the world. The impact of over dependence on oil revenue on nigeria economic growth cannot be overemphasized this research work will explore all the negative implication of monoexport on nigeria economy. Nigerian oil is highly desired by refineries in developed nations as it is less corrosive for refinery. These grades are valued differently by refiners based on their crude qualities some of the more common crude oil grades that have regular price assessments are. Before oil was discovered, agriculture was the mainstay of the economy. The study sets out to examine the causal and both short and longrun relationship between crude oil price changes and economic growth in nigeria.