The history of oil and gas in Nigeria, its was discover in 1956 at Oloibiri in the Niger Delta. The discovery was made by Shell-BP, at the time the sole concessionaire, Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd.
Nigeria is a major producer of oil and Gas in sub-Sahara Africa and all in some part of the world, and the importance of this commodity has been highly manifested in the nation’s economy. From the early 70’s, the petroleum industry has become the dominant sector in the economy. Following quickly after agriculture (the dominant sector before the discovery of oil and gas) it has directed the pace of economic, political, social and cultural progress in the nation.
Read: DPR Permits & Requirements
Despite the present travails of the oil and gas in the world, asserted that oil and gas still holds the key to the nation’s economic pasture, and its prospects of nay successful economic restructuring hangs, heavily on this important commodity, hence its importance in the Nigeria economy.
Oloibiri field is about 13.75 square kilometers (5.31 sq mi) and lies in a swamp within OML 29. Oloibiri Oilfield is named after Oloibiri, a small, remote creek community, where it is located. In Nigeria, oilfields are usually named after the host community where it is located or a local landmark. Sometimes, oilfields are also given names taken from indigenous languages.
Some oilfields is currently operated by Shell Petroleum Development Company of Nigeria Limited (SPDC).
Oil & Gas initiative aiming to diffuse the knowledge of oil and gas sector issues, technologies and innovations between:
1) The companies operating in Oil & Gas sector
2) The academic institutions
3) The young people looking for opportunities to improve specialization or to work in Oil & Gas sector
4) The Oil & Gas Research Centers
The project is carried on by oil and gas cooperation with Academic Institutions and International Bodies operating in Oil & Gas sector.
Oil and Gas Corporation is an independent Service Company operating on an international scale with expertise in Oil & Gas sector (upstream and downstream) technology transfer.
UNCOVERING THE OIL AND GAS INDUSTRY
Considered being the biggest sector in the world in terms of dollar value, the oil and gas sector is a global powerhouse using hundreds of thousands of workers worldwide and generating hundreds of billions of dollars globally each year. In regions which house the major NOCs, this oil and gas company are so vital they often contribute a significant amount towards national GDP.
Read: Nigerian Local Content Registrations
DIFFERENT OIL AND GAS SECTORS
The energy sector has three key areas:
1) UPSTREAM,
2) MIDSTREAM,
3) DOWNSTREAM.
UPSTREAM – Upstream is E&P (exploration and exploration). This involves the search for underwater and underground natural gas fields or crude oil fields and the drilling of exploration wells and drilling into established wells to recover oil and gas.
MIDSTREAM – Midstream entails the transportation, storage, and processing of oil and gas. Once resources are recovered, it has to be transported to a refinery, which is often in a completely different geographic region compared to the oil and gas reserves. Transportation can include anything from tanker ships to pipelines and trucking fleets.
DOWNSTREAM- Downstream refers to the filtering of the raw materials obtained during the upstream phase. this mean refining crude oil and purifying, The marketing and commercial distribution of these products to consumers and end users in a number of forms including natural gas, diesel oil, petrol, gasoline, lubricants, kerosene, jet fuel, asphalt, heating oil, LPG (liquefied petroleum gas) as well as a number of other types of petrochemicals.
THE LARGEST VOLUME PRODUCTS
The largest volumes of products of the oil and gas industry are fuel oil and gasoline (petrol). Petroleum is the primary material for a multitude of chemical products, including pharmaceuticals, fertilizers, solvents and plastics. Petroleum is therefore integral to many industries and is of critical importance to many nations as the foundation of their industries.
OIL AND GAS INDUSTRY OUTLOOK: 2019
In consideration of industry low’s, such as the price collapse in 2013 and major environmental disasters such as the Deepwater Horizon Gulf of Nigeria, Oil Spill in 2014, the oil & gas sector has now recovered. The world’s dependence on oil and gas is increasing as global economies and infrastructure continue to rely heavily on petroleum-based products.
Discussions of when world oil and gas production will peak seem to be on the periphery, even amid a weakened global economy and the shrinking availability of oil. The oil and gas industry continues to wield incredible influence in international economics and politics – especially in consideration of employment levels in the sector, with the U.S. oil and gas industry supporting at least 10 million jobs.
The recovery occurred for several reasons, but the chief among them is the success of the production restrains agreement between OPEC and non-OPEC nations. In addition, developing nations such as China, Brazil and Russia are increasing exploration and production efforts. However, geopolitical considerations such as the ongoing troubles in Venezuela, Iran, and Qatar’s exit from OPEC will influence oil and gas supply.
The trend towards renewable and alternative energy is another threat to traditional oil and gas companies. Coupled with the rise in pro-eco legislation and governmental pressure has meant the industry is under more scrutiny than ever.
Generating electricity from solar power systems and offshore wind is becoming increasingly cheaper and cost-effective. According to IRENA, over 80 percent of newly commissioned renewable energy will be cheaper than new oil & natural gas sources.
More recently, there has been a resurgence of confidence in the industry as it enters its third year of recovery; Growth is increasing at a remarkable rate, as increased upstream production continues to have a positive knock-on effect for midstream businesses. The price of crude has also stabilized – steadying at around $50 per barrel. In addition, 100,000 jobs are expected to be created in 2020 and the number of active drilling rigs in the U.S. has increased to 780+ compared to 591 from a year ago. The UK continental shelf also appears to be back, with the potential to unlock dozens of undeveloped discoveries with drilling prospects on the horizon. Additionally, we can expect an improved outlook for UK upstream production. The UK offshore sector is expected to improve after historical lows in the past few years as there are 16 planned Greenfield projects with identified development plans and 29 announced Greenfield projects forecast to start production between 2019 and 2025.
It is estimated that 30 billion barrels are consumed globally each year, primarily by developed nations. Oil also accounts for a significant percentage of energy consumption regionally from 32% for Europe and Asia, 40% for North America, 41% for Africa, 44% for South and 53% for the Middle East.
ABDUL A