HISTORICAL DEVELOPMENT OF PETROLEUM INDUSTRY IN NIGERIA

HISTORICAL DEVELOPMENT OF PETROLEUM INDUSTRY IN NIGERIA

The development of the petroleum industry in Nigeria started several years ago. The first attempt made towards oil expoloration was in 1908 by a German company called Butman Corporation. This was closely followed in 1937 by Shell D ‘Aery, an Anglo-Dutch company.

By 1956, Shell B.P. embarked on a more economic production of petroleum in the Niger Delta region of Nigeria.

 It was in this year 1956 that Shell B.P. discovered its first commercial crude oil in the country at Oloibiri in the present Rivers State. In 1958, full scale production took off.

  1. budgeting
  2. factors affecting the expansion of industries
  3. mineral resources and the mining industries
  4. demand and supply
  5. types of demand curve and used
  6. advertising industry
  7. factors of production
  8. entrepreneur
  9. joint stock company
  10. public enterprises
  11. private enterprises
  12. limited liability companies
  13. migration
  14. population
  15. market concept
  16. money market
  17. shares
  18. how companies raises funds for expansion
  19.  

Later, many other companies such as Agip Oil and Gulf (now Chevron), joined in the exploration of crude oil. By 1960, when Nigsria became independent, the volume of output of crude oil was just about six milliom barrels. By 1965, crude petroleum production had reached about 100 million barrels. The civil war between 1967 and 1970 slowed down production. Ai the end of the civil war, crude oil production was about 197 million barrels.

Since 1976 till date, petroleum has remained the major source of government revenue.

POSITIVE CONTRIBUTIONS OF PETROLEUM TO NIGERIAN ECONOMY

  •  Source of government revenue: Petroleum has contributed greatly to the major source of revenue available to the government.
  • Generation of employment: The petroleum industry has also aided i generation of employment opportunity to various categories of people, e x petroleum engineers, geologists chemical engineers.
  • Infrastructural development: Me generated from petroleum industry hi helped develop infrastructures in country, e.g. roads, airports, se electricity and telecommunications
  •  Source of foreign exchange Petroleum plays a major role as: of foreign exchange for the nation.
  •  Establishment of oil-related industries: Other oil-related i have been established with the crude oil, e.g. petrochemical ii

  •  Improvement of balance payment: The exportation of payment to foreign countries has contributed greatly to the improvement of balance of payment.
  • Improvement of standard of living: Petroleum industry, through the provision of employment, increase in per capital income and development of basic infrastructure, has helped to improve the
    standard of living of the people
  • Positive foreign policy: Petroleum has played a vital role in shaping Nigeria’s foreign policy since her independence.
  • Major source of energy: Petroleum remains the major source of energy in
    the country, e.g. petrol, tiles and kerosene.
  • Provision of wide range of products: Petroleum has contributed to the provision of a

wide range of products such as fuel, paints, insecticides, tiles and fertilizers

.

NEGATIVE CONTRIBUTIONS OF PETROLEUM TO NIGERIANECONOMY

(1)     Environmental pollution: Oil exploration has led to serious environmental pollution of the land, air and water, especially in the Niger-Delta region of the country.

  •  Increased social vices: The discovery of oil in the country has led to increased social vices like corruption, armed and pen robbery.
  • Development of mono economy: As a result of the discovery of oil, Nigeria is now a mono economic country, i.e., it now relies solely on crude oil as her major source of revenue.

  • Neglect of agriculture and other sectors: Agriculture, which used to be a major source of revenue to the nation, has been neglected, other sectors no longer have relevance in the economy of Nigeria.
  • Rural-urban migration: it has also led to the movement of able-bodied men and women from the rural to urban centres in search of non-existent jobs.

  • High rated inflation: The money derived from petroleum is so much that there is excess money pursuing few goods and services.
  • Political instability: The discovery of crude oil has led to political instability in the country as people in the Niger-Delta are always at war with other groups, causing social insecurity.
  • Economic instability: Oil glut, which had once spelt doom for this nation, always reminds us not to over-rely on crude oil as the high prices of the crude being experienced now can collapse any time.

  • Deprivation of means of livelihood: As a result of the exploration of crude oil, many people, like fishermen and farmers have been deprived of their means of livelihood due to heavy pollution.

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