IMPLICATIONS OF CRUDE OIL PRODUCTION IN BONNY FROM THE YEAR OIL WAS DISCOVERED TO 2015

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPTER ONE

1.0   INTRODUCTION

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1        sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1    Introductions

4.2    Data analysis

CHAPTER FIVE

5.1    Introduction

5.2    Summary

5.3    Conclusion

5.4    Recommendation

Appendix

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Abstract

In 1956, Shell British Petroleum discovered crude oil in the Niger Delta within Nigeria and since then oil exploration and exploitation have been ongoing for several decades. The Niger Delta consists of highly diverse ecosystems supportive of numerous species of terrestrial and aquatic fauna and flora and is the largest wetland in Africa. The oil spillages ongoing for several decades have characterized the area by contaminated rivers, stream and forest, which constitutes the major income source for the majority of the local population inhabiting the region in which are mainly dependent on ecosystem services Bonny takes a major share of these contamination. Approximately 1.5 million tons of oil has been spilled within the Niger Delta region over the span of several decades, most of which was partially cleaned or not cleaned at all, making some areas wastelands.

 

 

 

 

        CHAPTER ONE

                                        INTRODUCTION

1.1 Background of the study

Petroleum exploration and production in Nigeria’s Niger Delta locale and fare of oil and gas assets by the petroleum area has significantly enhanced the country’s economy in the course of recent decades. Nonetheless, exercises related with petroleum exploration, advancement and generation operations have nearby impeding and huge effects on the climate, soils and dregs, surface and groundwater, marine environment, organically assorted qualities and manageability of earthly biological systems in the Niger Delta. Releases of petroleum hydrocarbon and petroleum–derived squander streams have brought about ecological contamination, antagonistic human wellbeing impacts, adverse effect on provincial economy, socio–economic issues and corruption of have groups in the 9 oil–producing states in the Niger Delta region. Although there are other potential anthropogenic wellsprings of contamination, a portion of the major ecological outcomes, for example, air contamination, worldwide climate change and oil spills in the Niger Delta may be regional or global in scale. Apart from other anthropogenic emission sources, atmospheric pollution in the region is associated with emissions from flaring and venting of petroleum associated natural gas by petroleum industries. Atmospheric contaminants from anthropogenic activities can be categorized into  gaseous pollutants,  persistent organic pollutants, particulate matter and trace element and/or heavy metals. Release of petroleum hydrocarbons into the environment, whether accidentally or due to anthropogenic activities, is a major cause of controlled water and soil pollution and may also contribute to regional atmospheric pollution. Petroleum is a naturally occurring complex mixture made up predominantly of hydrocarbon compounds and frequently contains significant amounts of nitrogen, sulphur, and oxygen together with smaller amounts of nickel, vanadium, and various elements. Petroleum compounds can occur in solid form as asphalt, liquid form as crude oil and/or gaseous form as natural gas.

Nigeria has been a member of Organization of Petroleum Exporting Countries (OPEC) since 1971. It has the largest natural gas reserve in Africa, has the second largest oil reserve in Africa and is the African continents primary oil producer. As of the 1980s oil revenue provided 90% of Nigeria foreign exchange earnings and 85% of the government revenue (Odeyemi and Ogunseitan 1985), with estimated reserves extending beyond 20-30 years (NNPC, 1984). Shell D’Arcy the pioneer oil company in Nigeria, which started commercial production in 1958 with a production rate of 5100 barrels per day and a peak production of 2.44 million barrels per day over the next few years (Amu, 1982). According to NNPC (1984) through OPEC, production rates dropped to 1.5 million barrels per day from the activities of 10 international companies working 122 fields, containing over 970 oil wells. Nigeria has four oil refineries with an estimated total refining capacity of 445,000 barrels per day (Onuoha, 2008; Anifowose, 2008). The first and oldest being the Port Harcourt refinery, commissioned in 1965. It had an initial capacity of 35,000 barrels per day, which was later expanded to 60,000 barrels per day of light crude oil. The Port Harcourt refinery has a second refinery with a capacity of 150,000 barrels per day (Odeyemi and Ogunseitan 1985 Ukoli 2005). Anifowose (2008) and Onuoha (2008) cited in their studies that the region has about 606 oil fields with 355 situated onshore; 251 situated offshore with 5,284 drilled oil wells and 7,000km of oil and gas pipelines. The World Bank estimated that the oil sector accounts for 95% of Nigeria export earnings and 85% of the governments revenues as of 2009. Currently in 2010 the International Monetary Fund (IMF) estimates that the oil sector accounts for over 95% of Nigeria export earnings and about 65% of the government’s revenue. According to OGJ Nigeria has an estimated 36.2 billion barrels of proven oil reserves as of January 2010. The majority of the reserves located along the Niger Delta River, offshore Bright of Benin, gulf of Guinea and the Bright of Bonny. The current exploration activities focused in deep and ultra-deep offshore and some activities in the Chad Basin located northwest of Nigeria. In 2008 Nigeria’s crude oil production averaged 1.94 million bbl/d making it the largest oil producer in Africa, with current production slightly over 2.2 million bbl/d as of 2009 (Country Analysis Brief 2009). In 2008 EIA estimates that Nigeria’s production could have reached 2.7 million bbl/d. Recent offshore developments combined with the restart of some shut-in onshore production have boosted crude oil production to an average 2.03 million bbl/d as of 2010 (Country Analysis Brief 2009, 2010).

1.2 STATEMENT OF THE PROBLEM

Since the discovery crude oil in the Niger Delta region of the country, Nigeria has earn $600 billion US dollars on oil exportation, making the country the highest oil exporting country in Africa and 3^rd in the world. But the development of this region does not commemorate with the resources that emanate from the region. Couple with the fact that these oil exploration has damage the aquatic life, land pollution and streams and rivers which is a source of lively hood of the inhabitant of these region. It is on this backdrop that the researcher intends to investigate the implication of crude oil production in the economy of Bonny River state.

1.3 OBJECTIVE OF THE STUDY

The main objective of this study is to ascertain the implication of crude oil production in the economy of Bonny since the year oil was discovered in Bonny till 2015. But for the successful completion of the successful completion of the study, the researcher set the following sub-objectives to be achieved:

1. To ascertain the implication of oil exploration in the economy
2. To ascertain the impact of oil exploration in the economic development of Bonny community

• To evaluate the role of oil exploration on the economic growth of Bonny community.

1. To ascertain the relationship between oil production and economic development

1.4 RESEARCH HYPOTHESES

The following research hypotheses were formulated by the researcher to aid the completion of the study

H₀: there is no relationship between oil production and economic development

H₁: there is a relationship between oil production and economic development

H₀: oil exploration does not play any role on the economic growth of Bonny community.

H₂: oil exploration does play a role on the economic growth of Bonny community

1.5 SIGNIFICANCE OF THE STUDY

It is conceived that at the completion of the study, the findings will be of great benefit to the oil exploration company, which will aid them in improving on their corporate social responsibility.

The study will also be beneficial to the federal ministry of environment, who are responsible for cleaning up of oil exploration in the affected community, the study will also be of great importance to academia’s as it will contribute and add to the pool of knowledge. Finally the study will be of great importance to students, teachers, lecturers, researchers and the general public.

1.6 SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the implication of crude oil production in the economy of Bonny since the year oil was discovered in Bonny  till 2015. However, in the cause of the research there were some constrain that limited the scope of the study; below are some of the constrain:

AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study

TIME: The time frame allocated to the study does not enhance wider coverage as the researcher have to combine other academic activities and examinations with the study.

FINANCE: finance is a major constrain to the scope of these research work, this is because the researcher has to combine academic work and the research work which limit the amount

1.7 RESEARCH METHODOLOGY

The methodology adopted for this study is the historical research design. This design was adopted as it best suite the study as the researcher intends to get information on the implication of oil exploration in Bonny community. The main sources of information are the secondary data, as information is sourced from articles, publication, journals and the internet.

1.8 SCOPE AND THE LIMITATION OF THE STUDY

The scope of the study covers the implication of crude oil production in the economy of Bonny since the year oil was discovered in bony till 2015, but in the course of the study there are some factors that limited the scope of the study;

 

1. a) Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
2. b) Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work
3. c) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study.

1.8 OPERATIONAL DEFINITION OF TERMS

Crude oil

Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. A type of fossil fuel, crude oil can be refined to produce usable products such as gasoline, diesel and various forms of petrochemicals.

Economy

An economy is an area of the production, distribution and trade, as well as consumption of goods and services by different agents.

Crude oil Production

Crude oil production is defined as the quantities of oil extracted from the ground after the removal of inert matter or impurities

 1.9 ORGANIZATION OF THE STUDIES

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

 

 

 

 

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