Topic of this research is the strategies for managing petroleum products scarcity in Nigeria.
The purpose of this study is to evaluate the extent to which petroleum product scarcity are managed. In conducting research the researcher made use oral interview and questionnaire she also review other related literature necessary to provide the required data for the. There are three chapter (3) in this project chapter one deals with the introduction and the problems associated with the subject matter were discussed chapter two is the review of relate literature is examined which deals with the origin of petroleum in Nigeria
Chapter three is the examination of conclusion which deals in the data presentation
2.0 Literature review
3. CONCLUSION
The story and a look into the background of petroleum which is basically a mixture of crude oil and gas is fascinating. History has it that several light years ago plants and animals died and their remains become buried deep beneath earth under many thick layers of sedimentary rock such as limestone, shale’s etc through several physical and chemical changes these organic remains formed petroleum and it is found on land.
The search for petroleum is an expensive and a complex exercise which being with the survey involving geological mapping rock sampling and analysis the most prominent method used in this surveys is seismic in which explosives are discharge into the ground. The feedback is processed analyzed and recorded as a raw seismic data. The data is then processed and interred probable with the aid of computer to show area as of probable oil and gas accumulation such area as are then selected for further investigation through drilling
When oil is discovered in commercial quantities through drilling the oil is sent to stations where water and gas are separated and oil is piped to refines where it is refined and converted into products such as premium motor spirits (PMS) or (PMS) or popularly know as fuel, Automatic gas oil (AGO) also know as diesel or gas Dual purpose kerosene (DPK) and many other productions however this study is concerned with PMS, AGO and DPK. These are know (technically) as white product.
It is based on the above historical ground in 1937 shell D Arcy petroleum development company began their curious search for cruse oil in Nigeria (schatzl, 1969:16)
(schatzl 1969 p.9) said that after the interruption from 1941-1946 caused by the second world war they followed an intensifications of he undertaking. Through geological ground investigation then followed an appraised based on aerial geological photograph. Definite information as to whether crude oil is actually present in potentially productive geological and geophysical methods of investigation are obtained and also the evidence of oil accumulation can be obtained only through drilling operations.
In the period from 1951-1966, the beginning of drilling activity were carried on and wells are drilled the wells were concentrated only in a territory south of a line drawn through Benin City Owerri and Calabar all located in the tropical rain forest and the mangrove swamp vegetation zones sequel to this , a total of is wells were drilled (schatal 1969, p.14)
All drillings in the North and East parts of Eastern Nigeria which were dry or only discovered natural gas deposits while wells drilled in the southern part of eastern region especially in Oloibin and Afan found in the Miocene deposits very promising crude oil accumulations at a dept from 9,00 to 11,00 feet’s.
From 1957-1959, shed BP spurred on by the discovery of crude oil in Oloibin and Afan increased the number of its drillings. After that they was then a clear concentration of drilling activity in south eastern Nigeria. The increased drilling activity was as a result of discovery of lightly productive field in Bomu, Libubu, Imo, River, Olorokoro, drilling intensity was concentrated around port Harcourt and Ughelli and some of the off shore areas in 1964.
Mobil oil sank its first exploratory wells in 1959. mobile producing Nigeria unlimited. Jonnesscee in 1962 America overseas Gulf oil both in 1963 and SAFRAP and AGLP in 1964. especially note worthy among these is GULE OIL for whom 44 out of 57 wells showed oil deposit (Schatzle 1969; 22)
The figures according to schatzle (1969) stated that the proportion of crude oil resources in Nigeria was 0.85% of the total world reserve Nigeria has 13.3% of the Africa resources.
CRUSE OIL RESERVES OF NIGERIA 1958-65 IN MILLION TONS
|
YEAR |
CRUDE OIL RECSOURCE IN MILLION TONS |
IN MILLIONS |
IN YEAR |
|
1958 |
3 |
0.256 |
12 |
|
1959 |
11 |
0.533 |
20 |
|
1960 |
`21 |
0.837 |
25 |
|
1961 |
14 |
0.244 |
18 |
|
1962 |
55 |
3.274 |
17 |
|
1963 |
69 |
3.712 |
19 |
|
1964 |
137 |
5.858 |
23 |
|
1965 |
408 |
13.324 |
31 |
With a production of 20.5 million tons in 1966 Nigeria stands 13th place in an international ranking of crude oil production in Nigeria whose share of world production is 1.32% has only a small significance in the world wide economy.
On the other hand within African Nigeria after Libya and Algeria is the third most important producing country oxford university press (ranking of crude oil producers (this day 2000p13) Nigeria share of Africa crude oil production amounted to over 15 % of 1966.
Commercial crude oil production began in Nigeria in December 1957. then the production volume increased to 6.6million barrels in 1960.161. this relatively small use in production is due primarily to limited transport capacity. The availability of crude oil in port of Bonny in April 1961 as well as the expansion of he pipeline not caused an immediate and pronounced rise in crude oil production in 1961/62 to more than 28 million tons. Since then crude oil production in Nigeria by intensification of drilling activities and expansion of transport capacity has increased continually.
After the discovery of crude oil commercial quantities in Oloibin now River in 1956Nigeria psychological and social profile change by 1970. Oil accounted for more than 8.5 percent of total earnings. And between 1970-2001. Oil has now accounted for more than 94 percent of total income earning of Nigeria.
With such impressive earning Nigeria was involved in prestige projects (new watch October 24, 1994,p8) this was the period of oil boom in Nigeria oil and money was so surplus then a one time “that the problem Nigeria has was not money then how to spend it”
However, following the cessation of hostilities in the Nigeria civil was in 1970 activities (economic) and for petroleum products was as high that by 1974/75 Sogore shortage of products become the order of the day (Akpieye 1987p.3) Nigeria began to witness a bit of petroleum shortage.
The result of these shortages or scarcity became long queues and scrambling a service stations and the shortage passed obvious threat to the economic growth of the country
The art of instituting strategies for managing petroleum product scarcity in Nigeria does not just occur. There are circumstances fact environmental influence individual behavioural approach which are statistic to the subject matter.
For effective strategies to petroleum products scarcity in Nigeria two factor has to be considered first. One is to initiate the plan and the other is to carryout the initiated strategies as regards to managing petroleum products scarcity in our country. One time petroleum monster in the Banbangida administration in his interview with the statuary concord quoted that the menace of fuel scarcity in Nigeria does not arise as result of policies set out by his mining and her superior but as a result of carrying out to its fullest this polices and strategies in order to curtail fuel scarcity in Nigeria (Saturday concord 1998 p11)
It is pertinent to state that the problems that are linked with the strategies for managing petroleum products scarcity in Nigeria is necessary as a result of the lack luster attitude of the policies stipulated by the federal government and her subordinates. A pointer to the fact is the purported Turn around maintenance (IAM) of Nigeria oil refineries that was awarded by Obasanjo administration in his first tenure bit up till now the turn around maintenance has not being carried out by the construction firm handling the contract citing lack of find as the cause . but this is far from the truth as the federal government to release fund but is being diverted into personal account by some unscrupubus individual who prefer to enrich themselves than to carry out the work they are asked to do.
On the contary the federal government sometime initiates Kangaroo policies. That is initiating strategies that are meant to deceive the masses. They carry propaganda both on spirit and electronic medias that strategies measures have been put in place to work out strategies for managing petroleum products scarcity in the country but all the plans is only on the faces of newspapers. Iam David west after being released from Tirikiri prison in the book wrote the “ the military government effort to rib the lingering fuel scarcity in Nigeria in the bud is characterized by he more you look the less you see”
On the other hand the persistence of pipeline vandalization by hoodlums and those that are sabotaging the government is also not helping the matter. They have been many cases of 0i8l pipeline vandalization in our country’ which ahs also been a set back on the strategies for managing petroleum products scarcity in Nigeria. They have been many cases of oil pipeline vandalization in Delta State Imo Sate and so many other area in our country. To this effect the federal government has put in place stringent measure to put a stop this wholesome act, but it seems that it is in the increase daily despite the measure by the federal government.
Other problem associated with the strategies for managing petroleum product scarcity in Nigeria that it is as serious as the former is petroleum products diversification petroleum products diversification has been a hobby in our country today and it is not helping matter.
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