Nigerian Oil Research Articles

Oil Consumption and Economic Growth in Nigeria: A Multivariate Cointegration Analysis

The paper seeks to examine the relationship between oil consumption and economic growth in Nigeria using the Johansen and Juselius Co-integration technique based on the Cobb-Douglas production function to construct three models by introducing three major sectors of oil consumption of Nigeria (Transport, Power and Industrial sector oil consumption) and how Nigerian's upward review oil price variable impact on GDP. ADF (1979) and Johansen Maximum Likelihood method of cointegration (1988) are used to test the order of integration, Long run and short run dynamics between variable respectively using annual data since 1970-2016. The study shows an evidence of the long run and dynamic relationship for all the variables except industrial oil consumption and oil price variables which has no short run impact on GDP. Also it was found that capital and labour are more important in affecting output growth compared to energy consumption Oil prices impacting real GDP negatively in long run but positively in short run. Prominent policy recommendation are, in order to sustain high economic growth in the long-run, the country needs to increase the efficiency of its workforce and expand its saving capacity to generate more capital and need to strengthen the effectiveness of energy generating agencies by ensuring periodic replacement of worn-out equipment in order to drastically curtail transmission power losses.

Mandatory Social and Environmental Disclosure: A Performance Evaluation of Listed Nigerian Oil and Gas Companies Pre- and Post-Mandatory Disclosure Requirements

Corporate social and environmental disclosure is still evolving and weak in developing countries and to stimulate the practice, many developing countries are putting in place regulations. Code of Corporate Governance for listed companies in Nigeria issued in 2011 mandated certain disclosure. Therefore, the main aim of this study is to assess volume of disclosure by listed Nigerian oil and gas companies six (6) years pre- and six (6) years post the code. Legitimacy theory is employed to underpin the study while corporate characteristics are tested to determine their influence on volume of the disclosure. Modified word count content analysis of annual reports and accounts of sample companies is used to determine volume of disclosure while two sample t-tests give the statistical mean of the disclosure. Panel Corrected Standard Error Regression analysis is used to determine the influence of corporate characteristics on the volume of the disclosure. Results from words counts content analysis indicated 53% increase in volume of social disclosure and 235% increase in volume of environmental disclosure six years post-code over disclosure six years pre-code. Two sample t-tests show that the mean of disclosure six years post code is greater than the mean of disclosure six years pre- code. Panel regression analysis results show that corporate size, have positive and significant relationship with disclosure. Obtained results is perhaps consistent with legitimacy theory.

Oil and Gas Problems in Nigeria; The Impending Problems and the Preferable Solutions

Nigeria has been very active in the exploitation and exploration of oil and gas. It has been the major source of revenue which has contributed over 90% on yearly basis. There is no doubt that the Nigerian oil and gas industry is plagued with many impending problems. This article examines the crux of problems confronting the oil and gas industry as well as proffering reasonable solution. The problems among others include volatility of oil prices, obsolete laws and regulation, pipeline vandalism, corruption and lack of government funding. The article established that innermost players are responsible for plethora problems affecting the industry which are government owned agencies which are deeply involved in the malaise. The Global market externalities and external forces are not left out. The article recommends that oil and gas industry requires a surgical operation and there must be holistic approach in order for the industry to attain the global standard.

Optimum demulsifier formulations for Nigerian crude oil-water emulsions

The formation of crude emulsion during oil production and processing is a challenge of significant proportions to the oil producers. Studies show that about two third of Nigerian crude oil production is in form of water in oil emulsion. For economic and operational reasons, it is necessary to separate the water completely from the crude oil before transportation or refining.Efficiency of separation of crude emulsions is of major importance to producers. To this end, this study primarily seeks to investigate the formulation of effective demulsifier that can be used to achieve this aim; and in so doing, the optimal separation efficiency attainable by this demulsification process is determined. Six different samples of water and oil soluble demulsifiers were used on two different samples of synthetic emulsion (sample I and II (both water in oil emulsion) from different Nigerian oil fields). The bottle test method was used to determine the percentage water separation for each crude oil emulsion/chemicals (demulsifiers) mixture. The concentrations of the combined six chemicals (demulsifier samples A–F) in the mixture were related to the percentage water separation using response surface methodology central composite design (RSMCCD).Results show that the optimum concentrations of demulsifiers A–F are 59 ppm/39 ppm/29 ppm/20 ppm/29 ppm/13 ppm respectively for crude oil sample I. While 54 ppm/40 ppm/25 ppm/21 ppm/29 ppm/8 ppm respectively were observed as optimum concentration for crude oil II. The combination of these chemical was observed to return better performance than the existing commercial demulsifiers with percentage water separation of 92% and 94% compared to percentage water separation of 87% and 90% returned by one of the currently available demulsifier used in the petroleum industry for crude oil A and B respectively. Hence, the need to carry out optimization analyses on different emulsified crude oil cannot be over-emphasize.

Effects of Vitamin E Supplementation in Male Rats with Crude Oil-Induced Reproductive Toxicity

Crude oil intoxication is a major threat among people and animals living around the crude oil producing regions of the world, hence the search for ameliorating agents. Forty-four male Wistar rats assigned into three groups were used to investigate the effects of vitamin E supplementation on crude oil-induced reprotoxicity (reproductive toxicity) in male rats. Group A represented the unexposed control, whereas groups B and C were exposed orally to 0.15 and 0.3 ml of crude oil respectively every other day for 56 days. Both the low dose and high dose oral administration of crude oil caused a significant reduction in the serum testosterone level (STL) and cauda epididymal sperm reserve (CESR) of the exposed rats when compared to the control. Crude oil withdrawal and vitamin E supplementation significantly improved the cauda epididymal sperm reserve (CESR) in all the subgroups. The serum alanine aminotransferase (ALT) and aspartate aminotransferase (AST) activities of the control and low dose group were significantly lower than those of the high dose group. The high dose crude oil administration significantly decreased the mean serum total protein (STP) and sodium ions (Na+) concentration. The mean serum total cholesterol (STC) value of the low dose group was significantly higher than those of the control and high dose group. However, crude oil withdrawal and vitamin E supplementation did not significantly alter the mean serum total protein (STP) and mean serum total cholesterol (STC) values in all the subgroups. Vitamin E supplementation following low dose crude oil withdrawal enhanced the mean serum Chloride ions (Cl-)concentration. The present findings revealed that Nigerian Qua Iboe Brent crude oil induced serious reprotoxic effects in male rats which vitamin E administration within 28 days did not completely reverse.

Who is Who? Identifying the Different Sub-groups of Secondary Stakeholders within a Community: A Case Study of the Niger Delta Region of Nigeria Communities

The Nigerian oil and gas industry (NOGI) has over time been dominated by the Nigerian government and oil producing companies (OPCs). The influences of the community stakeholder on OPCs in the last three decades have been expressed in diverse ways by different community sub-groups through their concerns and interests, some of which have severely impacted on the NOGI. Community within this context is categorised as a primary stakeholder, while the sub-groups are secondary stakeholders that emerge from within the community. Hence, the success of the NOGI largely depends on the Nigerian government and the oil producing companies, and other players such as Non-Governmental Organisations recognising the community as a key player and having appropriate knowledge of the different sub-groups of secondary stakeholders within the community in order to understand their intentions, behaviour, interests, influences and interrelations. Such knowledge is relevant to the NOGI’s formulation of future oil and gas strategy.This study commences with an overview of the primary stakeholders (i.e. the Nigerian government, OPC and the community), their respective activities, participation and the link between these stakeholders with a specific focus on the NOGI context. Subsequently, various sub-groups of secondary stakeholders within the community and their respective interest(s) are identified in detail.

Total and speciation analyses of heavy metals in the sand fraction of Nigerian oil sands for human and ecological risk assessment

ABSTRACTTotal metal analysis and metal speciation of sand fraction of Nigerian oil sands were done to extract and partition heavy metals into six operationally defined fractions in order to assess environmental and health implications of the oil sand development. Soxhlet extraction of bitumen from the oil sand was done using toluene. Traces of water and extracting solvent were removed at 70°C from the sand fraction using oven. Elemental analysis was performed by Atomic Absorption Spectrophotometry. The heavy metals except Cu have low Pollution index values. Negative geo-accumulation index was obtained for the metals except Cu, indicating that the oil sands were uncontaminated with the metals. Strong and significant positive correlations existed between Fe/Pb, Zn/Cu, Cd/Pb, Ni/Cd, Ni/Pb, Cd/Fe, Ni/Fe and Cr/Zn, while strong and significant negative correlations existed between Mn/Pb and As/Mn, indicating common sources or chemical similarities and vice versa. T-test results indicated significant differences between the concentrations of the metals. Cross-plot analysis showed strong positive correlation between the sand fraction and Nigerian bitumen. Speciation analysis indicated highest and lowest indices of metal mobility for Zn and Pb, respectively. This study concluded that the sand fraction may not pose any environmental risks from elemental point of view.

Resource Misgovernance and the Contradictions of Gas Flaring in Nigeria: A Theoretical Conversation

Nigeria remains Africa’s largest energy producer and at the same time possesses one of the highest gas flaring rates in the continent. Gas flaring in the Niger Delta region, estimated at 75% of the entire gas produced in Nigeria, highlights the environmental abuse posed by resource extraction, and exposes the failure of successive governments to eliminate the threat it portends to human survival in the oil region. The federal government formally declared gas flaring illegal since 1984, but multinational oil companies continue to treat compliance as a matter of convenience and not of necessity. Despite persistent protests against environmental degradation by the oil-producing communities, the refusal of the oil companies to end gas flaring and complicity of the government remained sources of concern. In the light of these, the study examines the crux of the gas flaring imbroglio, assesses the cost–benefits of gas flaring, and explores how gas emissions to the atmosphere have threatened human existence and ecological sustainability in the Niger Delta oil region. The study reiterates the urgency to enforce a zero-gas-flaring policy in Nigerian oil communities.

Spatial and temporal analysis of crude oil theft in the Niger delta

This research sought to investigate patterns and correlates of the under-researched crime of crude oil theft (COT) in the context of the Niger Delta. The aim was to examine the feasibility of opportunity-, deprivation- and market-value-based explanations for COT patterns. A total of 1039 incidents of COT recorded by the Nigerian Oil Producers’ Trade Section during 2012–2014 were analysed. The results indicate that even when controlling for clustering of the oil pipeline infrastructure, spatial clustering of COT was statistically significant indicating manipulation of vulnerable situational contexts. No significant correlation was found between COT and the local unemployment or poverty rate. Finally, there was a moderate, significant positive temporal association between the volume of crude oil stolen and the international market price. The findings provide evidence that COTs are likely perpetrated by rationally motivated offenders and suggest that situational crime-prevention and market-reduction approaches show promise in proactively curtailing criminal opportunities.

Measurement of radioactivity level of sand fraction of Nigerian oil sands for environmental impact assessment

ABSTRACTThe radioactivity level of the sand fraction of Nigerian oil sands collected from four different locations, namely Ilubirin, Olowo-Irele, Loda, and Orisunbare, Ondo State, Nigeria, were identified and quantified with the view to assess its likely environmental and health impact of the exploration, exploitation, processing, and transportation of the fossil fuel. Soxhlet extractor was used to extract bitumen from the oil sand samples using toluene as extracting solvent. The sand fraction as left-over collected from the thimble after exhaustive extraction was dried in the oven at 70°C for 8 h to remove trace water and extracting solvent. A survey of radioactivity content and associated radiological risks was carried out on the sand fraction samples by means of a well-calibrated gamma-ray spectrometer containing Na-I (Tl) detector. The mean specific activities of 40K, 232Th, and 238U present in the analyzed sand fraction samples were 3131.17 ± 5.71, 147.90 ± 10.85, and 96.28 ± 2.59 Bq/kg, respectively. The results obtained for the absorbed dose rate (AD), annual effective dose rate (AEDR), internal hazard index (Hin), external hazard index (Hex), annual gonadal equivalent dose (AGED), and the representative levels index (Iγr) were 264.380 nGy/h, 0.324 mSv/year, 1.461 Bq/kg, 1.481 Bq/kg, 1903.073 µSvy–1, and 2.185, respectively. The AD values were higher than the population weighted average (60 nGy/h) recommended by UNSCEAR. The Hex and Hin values were above unity for the studied samples except from Ilubirin. The results follow similar trend for all the radiological parameters. The AGED values were higher than the world average (300 µSvy–1) set by UNSCEAR. The average lifetime cancer of mortality risk due to 40K, 232Th, and 238U was 2.09 × 10–3, 4.18 × 10–8, and 1.84 × 10–6, respectively, while that morbidity risks due to 40K, 232Th, and 238U were 3.07 × 10–3, 6.21 × 10–8, and 2.70 × 10–6, respectively. Radiological assessment however indicated that long-term exposure may pose an intrinsic health hazard.

The Nigerian Oil Industry: Assessing Community Development and Sustainability

Purpose: The reoccurrence of loss in revenue generation from the oil industry which is due to the unstable and heated relationship between oil corporations and host communities in the Niger Delta (ND) region of Nigeria has spurred the strategic social permission of oil multinational corporations (OMNCs) to operate in the country. Thus, OMNCs have continually given attention to the challenges faced by the region through community development in terms of initiatives and projects. Community development (CD) and sustainability are core to viable social responsibility (SR) whether from the part of government or from OMNCs. However, since the independence of the country in 1960, a lot of development agencies and commissions have been established by the government towards social and infrastructural development in the ND region. These agencies and commissions often combine efforts with OMNCs to enforce development and sustainability in the region which consequently result in mutual benefits on both ends. The purpose of this paper is to critically examine CD and sustainability of host communities in the ND by evaluating initiatives conducted by government development agencies such as the Niger Delta Development Commission (NDDC) and OMNCs such as ExxonMobil and Shell Petroleum Development Commission (SPDC) in the region.Approach/Design/Methodology: The paper applied a qualitative research approach. It conceptualises CD and sustainability and examines the views of community members on initiatives from the NDDC and OMNCs. Instruments for primary data collection were the Focus Group Discussion, In-depth Interviews (IDIs) and observation. The research made use of thirty IDIs and five FGDs. Secondary sources of data were journal articles, reports and other documents from both the OMNCs and NDDC. It also made use of the Nvivo11 software to organise the data while a content-based analysis was used to set data into themes. The study puts into consideration the perspectives of different community members as well as the various concepts which exist in the literature.Findings: Analysis reveals that there is positive impact when development takes place in host communities and sustainability attained but consequently, there are no probable and visible improvement of the OMNCs operations and business in the region, which is why there is reoccurrence of revenue loss in the country from the oil sector.Value/Originality: This paper gives voice to participants in a social setting by highlighting the importance of CD and sustainability in the ND region. It does this by looking into the different initiatives conducted by the NDDC, ExxonMobile and SPDC.

Ownership of Natural Resources Beneath the Surface: An Appraisal of the American and Nigerian System.

Regulation of oil and gas laws mostly flows from the resource ownership system adopted by the country from inception. This is the reason behind the sharp differences between the Nigerian and American oil and gas natural resource ownership. Both countries’ legal system, though evolved from the common law have developed different theories of natural resource ownership. While Nigeria embraced government ownership, the United States have evolved to private ownership leaving individuals in control of natural resources. This short paper looks at the evolution and practice, sources of the theories of ownership and its impacts on oil and gas exploration in Nigeria and United States.

Local Content in the Nigerian Oil and Gas Sector: A Classical Model for Indigenization

The Local Content policy is a vital instrument aimed at facilitating and indigenizing the oil and gas industry, through the creation of national economic values through institutional measure. Hence, this article examined the usefulness of the local content policy in promoting the participation of Nigerians and indigenization in Nigeria. This article revealed that the essence of the local content policy is to ensure the use of local manpower and resources to increase indigenization and foster sustainable development not only in the Oil and Gas sector but in Nigeria as a whole. The article recommended the need for monitoring scheme to regulate and monitor how local employees are paid, and their minimum salary. This can be effectively done by the implementation and supervision of the Board. This article established that the crux of the concept of local content is the quantum of composite value added to or created in the Nigerian economy by a systematic development of capacity and capabilities through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry.

Models for Environmental and Business Management in the Oil and Gas Industry

To meet the United Nations 2030 Agenda for Sustainable Development and the United Nations Frame Work conventions on climate change, there is need to develop new business and environmental management models to mitigate the impact of the emission of Carbon (IV) Oxide (CO 2 ) into the environment by the Oil and Gas industry taking into consideration the advantage provided by the digitalization of technology. This research presents new models for environmental management and Carbon taxation within the frame work of environmental sustainability. This study focused on the sources of the Hydrocarbon rather than the sink for its analysis and modelling. Every Oil and Gas producing country is viewed as an Isolated Thermodynamic system in space whose emission of CO 2 must be sustainable. An Isolated thermodynamic system is one in which no transfer of mass or energy occurs across its boundary. Hence, Oil and Gas producing countries that benefit from the revenues of Oil and gas production are held directly responsible for the unfavourable impact of CO 2 emission rather than the sink (consumers) in accordance with the “Polluter Pays Principle”. Viewing every country as an Isolated Thermodynamic system ensures that each country strives to live sustainably. The model for computing the CO 2 Ecological Footprint (EF) was developed with MATLAB 7.5.0 Software based on the total Oil and Gas production from the Oil and Gas producing country (Nigeria was used as a case study). Based on the Computed CO 2 EF, model for the size of the forest required for sequestering all the emitted CO 2 was developed for environmental sustainability. Two of the available technologies for CO 2 sequestration (Ocean Fertilization and Ocean Injection of CO 2 ) were used to develop environmental cost models as a basis for taxation. The result of the research shows that by viewing each Oil and Gas producing country as an Isolated Thermodynamic System that will be held accountable for CO 2 emission, the attainment of the UN 2030 Agenda for sustainable development and the UN conventions on Climate change are easily achieved. Empirical analyses of data obtained with regard to CO 2 released during Oil and Gas production in Nigeria suggests that the CO 2 release by the Nigerian Oil and Gas Industry is unsustainable. Digitalization technologies will rely on the new models developed in this research to develop new business tools for national and inter-country trading of CO 2 emissions and management of Forests for CO 2 sequestration.

English

Microbial communities of six samples from Escravos and Meren oil production facility in Nigeria were examined after biocide treatment using cultural and molecular approaches. Sulfate reducing bacteria (SRB) count and activity were the highest in skimmer pit samples (1N1) which was affiliated with Euryarchchaeota (44%) and Proteobacteria (39%). Treatment of Meren injection water (1N2) with biocides significantly reduced SRB population (102 cell/ml). Sample 1N3 (produced water discharge area) and 1N5 (treated produced water) were dominated by 70.79 and 52% Euryarchaeota, respectively. 1N4 (partially treated produced water) was dominated by Euryarchaeota (51.78%) and Proteobacteria (38%), while 1N6 (produced oil) was dominated by Proteobacteria (28%) and Euryarchaeota (62.6%). Metabolic activities in 1N1, 1N4 and 1N5 were dominated by sulfate reduction and methanogenesis; however, that of 1N2 was dominated only by sulfate reduction, while 1N3 and 1N6 were dominated by methanogenesis. Anaerobic incubation of 1N1 samples gave relatively higher corrosion rates (0.065 mm/year) while 1N2, 1N3 and 1N5 gave moderate corrosion rates (0.018 to 0.037 mm/year). This investigation in a Nigerian oil facility have substantially expanded our knowledge on the extent of microbial diversity in these fields after routine biocide treatment and have also shown the abundance and complexity of microbial communities in these fields that have potential to initiate souring and corrosion despite regular biocide treatment. Key words: Sulfate reduction, methanogenesis, corrosion, souring, microbial diversity.

The 2017 Nigerian Policy Consultation Workshop - Oil Collaboration Group High Level Comments on the New Oil Policy for Nigeria

Sequel to the discussion and brainstorming session held on Saturday, 14 January 2017 at Hilton Hall, Aberdeen, United Kingdom, on the New Oil Policy for Nigeria, this is a three-page summary of recommendations that will help to develop a very formidable and well-performing oil sector in Nigeria. Starting with comments on the legal framework, these high-level comments proceed to make recommendations on the making of a commercially viable Nigerian National Oil Company, best practices to be adopted in HSE Regulations, development of human resources, internal and external communication, as well as ensuring transparency and accountability in the Nigerian Oil Industry.

Comparative analysis of investment funding in the Nigerian oil and agricultural sector

This paper makes a comparative analysis of investment funding between the Nigerian oil and agriculture industry, where both debt and non-debt financing instruments are considered. It employs both descriptive and long-run analyses to establish the facts using data from 1971-2011. The empirical results revealed that all the adopted debt and non-debt financing instruments, follow the same direction with varying magnitudes. Among all these instruments, savings (development stocks and treasury bills) are the best non-debt and (debt) financing mix used to propel the development of both agriculture and oil sector. More so, a negative shock was reported from treasury certificate and bond and international lending club on both sectors' output. However, policy should aim at areas that would make foreign funds have a trickle-down effect on the physical assets of the two sectors and not areas where their funds can easily be repatriated.

A Review of Impacts of Gas Flaring on Vegetation and Water Resources in the Niger Delta Region of Nigeria

Nigeria is an oil and gas producing nation. The Niger Delta is the Nigerian oil and gas province. About 10 – 40% of produced associated gas is underutilized and is flared into the environment. This is the usual trend in the Nigerian oil and gas industry. Gas flaring has adverse impacts on the environmental components and its associated biota. This paper reviews the impacts of gas flaring on the vegetation and water quality resources in the Niger Delta region of Nigeria. The study found that gas flaring alters water ions (especially sulphate, carbonate, nitrate), pH, conductivity heavy metals (such as lead and iron) concentration especially in rainwater. It also affects vegetation leading to decrease in growth and productivity probably due to changes in soil quality parameters. The paper concludes by suggesting promulgation/implementation of gas glaring laws in Nigeria.

Nigerian Oil and Gas Industry Content Development Act’s Perceived Performance Impact

Petroleum-producing companies in Nigeria were forced to increase spending on Nigerian-sourced materials and services from $8 billion to $13 billion since 2010, due to the Nigerian Oil and Gas Industry Content Development Act that was implemented in 2010 to support local firms and improve the companies’ performance. There is sparse research on how the act affected the companies’ performance. This descriptive correlational study addressed the gap in the literature. Survey data from 372 employees of the five major petroleum-producing companies in Nigeria was analyzed. The study results indicated that the act had a positive effect on the employees’ internal competence factor and the organizations’ operational performance factor. The results are significant in understanding the impact of the act on performance.

Comparative analysis of investment funding in the Nigerian oil and agricultural sector

Comparative analysis of investment funding in the Nigerian oil and agricultural sector