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.

the first company to start large scale production and exploration of oil in Nigeria

By 1956, Shell B.P. embarked on a more economic production of petroleum in the Niger Delta region of Nigeria which incidentally is my state of origin where historical development of petroleum industry in Nigeria started

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 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.  

list of companies that started the petroleum industry of Nigeria

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 millionn 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.

development of petroleum industry in Nigeria

POSITIVE CONTRIBUTIONS OF PETROLEUM PETROLEUM TO NIGERIAN ECONOMY

the petroleum industry and exploration in Nigeria has contributed a lot to the Nigerian economy. in all  Source of government revenue: Petroleum has contributed greatly to the major source of revenue available to the government and historical development of petroleum industry in Nigeria

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.of the gains we can also say that the discovery of oil in Nigeria has brought Nigeria back in so many aspect of development.

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

Arising from these developments, many programmes embarked upon during the oil boom period have remained uncompleted while those completed could not be adequately maintained. This paper is an attempt to present an accurate account of the situation in the Nigerian petroleum industry. It also aims to highlightthe constraints on the effective performance of the sub-sector and outline relevantpolicy options. The rest of the paper is structured into four parts. Section II presents a detailed discussion of the structure of the industry. An analysis of the sub-sector’s performance is reviewed in Section lll while Section IV undertakes the identification of major constraints to the optimal development of the petroleum
sub-sector. Section V summarizes and concludes the paper.

It is supervised by the Ministry of Petroleum Resources under a Minister who is assisted by a Minister of State.
The Ministry, re-created in 1985, and to which the Petroleum Inspectorate was transferred by Presidential fiat in March 1988, has full responsibility 1 for, among others,
(i) the overall supervision of the Nigerian oil industry including activities of the NNPC and its subsidiaries;
(ii) all policy matters relating to the disposition of crude oil and petroleum products;
(iii) development of the hydrocarbon industry, including natural gas, processing, refineries and petrochemicals

https://dc.cbn.gov.ng/cgi/viewcontent.cgi?article=1940&context=efr

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NEGATIVE CONTRIBUTIONS OF PETROLEUM TO NIGERIAN ECONOMY

(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. as development of petroleum industry in Nigeria

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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