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ABSTRACT
The areas covered in this research work are:
1. Brief history of petroleum product in Nigeria
2. Scarcity of petroleum products in Nigeria
3. Causes of scarcity and strategies for managing it
4. Implication of scarcity on the Nigeria economy
Government policies and strategies for managing products scarcity.
The main objectives of this research are::
1.
To ascertain the management strategies for proper implementation of
economic decision to alleviate the suffering of the people with regard
to product scarcity.
2. How problem associated with the variable can be mounted
3. To proffer other suggestions that can help bring sanity in the management of petroleum products in Nigeria
4. Review collections as an indept recovery scheme as they affect government polices.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The
study of petroleum which is basically a mixture of crude oil and gas is
attracting story theory has it that several years ago plants and animal
died and their remain become buried deep beneath the earth under many
tick layer of sedimentary rocks such as limestone etc. through several
physical and chemical changes these organic remains formed petroleum.
Petroleum
is found on land and in marine areas. The search for petroleum is an
expensive and complex exercise which begins with surveys involving
geological mapping rock sampling and analysis the most prominent method
used in this survey is earthquakes shooting in which explosives are
discharged into the ground.
They were analyzed and recorded as raw
seismic data this data is processed and interpreted with the and of
computer to show areas of profitable oil and goes accusation such area
are then selected for further investigation through driving. When oil is
discovered in commercial quantities through driving the oil is sent to
station were water and gas are separated and oil is piped to refineries
where it will be converted into product such as premium motor sprits
(PMS) automotive gas oil (AGO) dual purpose kerosene (DPK) and other
fuel oils however this study this centered on PMS AGO and DPK
technically known as white products.
It is based on the above
historical ground that in 1939 Shelt D Arcy petroleum development
company began the search for crude oil in Nigeria.
Scheazi (1969:16) s
aid that after the interruption caused by the 2nd world war from
1941-1946, these followed an intensification of the undertaking through
geological ground investigation followed by appraisal based on aerial
geological photography. The evidence of oil accumulation can only be
obtained by or through driving operation.
In the period from list to
July 1966 which was the beginning of driving activity about 627 wells
were drilled. These well were concentrated in a territory south of a
line drawn through Benin city Owerri and Calabar all located in the
tropical rain forest and in mangrove swamps vegetation zones. Form
1959-1956 a total of 18 well were drilled (Schazi 1969:14).
All
drillings in the north and east parts of eastern Nigeria which were
wells drilled in the southern part of eastern region especially in
Olobrir and Afan found in the Miocene deposits very promising crude oil
accumulations at a dept from 9,000 to 11,000 feet form 1957-1959,shell
Bp Spurured on by the discovery of crude oil in Olobiri and Afam
increased the number of its drillings there are then clear concentration
of drillings activity in south eastern Nigeria.
The increase
drillings activity was as a result of the discovery of highly productive
friends in Bornu Ebubu Imo River Korokoro drilling intensity was
concentrated around port-Harcourt and Ugheli and since 1964 in some of
the off shore areas.
Mobile oil bank its first exploration wells in
1959 Tennessee in 1962 America Overseas and Gulf oil in 1963 SAFRAP and
Agip in 1964 especially note worth among these is gulf oil for whom 44
of 57 wells showed oil deposits Schatzi (1969:22) on the order hand
within African Nigeria is after Libya and Algeria the third most
important producing country he share of Africa crude oil production
amounted to over 15% in 1966.
Further Nigeria position
internationally when it comes to production of crude oil will improve
with an annual production of 55 millions tons it might be among the ten
most important crude oil producers of the world commercial crude oil
production began in Nigeria in December 1957. the production volume
increased to 6.6 million barrels in 1960161.
This relatively small
rise in production is due primary to limited transport capacity. The
availability of crude oil in port of Bonny in April 1961 as well as the
expansion of the pipeline net caused an immediate rise in crude oil
production in 1961162 to more than 2.8million tones.
Since then crude
oil production by drilling activity and expansion of transport capacity
has increased continually after the discovery of cried oil in
commercial qualities in Olobiri now River state in 1956 Nigeria
psychological and social profile changed. By 1970 oil accounted for more
than 85% of total earnings since then that percentage has only changed
upwards by a few pints.
With such impressive earning Nigeria was
involved in prestige project news watch October 24 1994:8) this was the
period of oil boom in Nigeria oil and money was so surplus that one
former head of state was quoted as saying that “the problem Nigeria has
was not money but how to spend they money” the came the period of oil
doom from the second half of the seventies till date.
However
following the cessation of hostilities in the Nigeria civil war in 1970
economic activities through the federation escalated and the demand for
petroleum products was so high that by 1974/75 severe shortage of
products became the order of the day (Akpieyi 1987:3)
The result of
these shortage or scrambling at services station shortage posed obvious
threat to the economic foundation of the country sequel to the problem
effort has been made to reform restructures and rehabilitees the
refineries by the federal government to cut down the scarcity. This
normality in the supply of fuel and other related resources continued
till around late 1998 and early 1999 when another maintenance was made
to the refineries and despots.
1.2 STATEMENT OF PROBLEM
In
teal life no problem present itself as problem but at first the element
of problem at first sight is but symptoms of what to come.
The
problem created by petroleum products scarcity in the country is so much
that it has threatened the socio- political and economic foundation of
the country.
Management strategies for proper implementation of these
economic decision to alleviate the suffering of the people with regards
to products scarcity is one the reasons that spurs the research into
this study one of the intents of the research is to fashion out
strategies for managing scarcity of petroleum products without improving
ay social or economic hardship to the people.
1.3 OBJECTIVE OF THE STUDY
1. To assess how
government polices affect the strategies to managing petroleum products
scarcity in Nigeria using Enugu as a case study
2. To ascertain the impact of security agents in the distribution of these petroleum
3. To assess the performance and impact of oil marketing companies as it affects the bridging of white products
4. Finally to proffer suggestion that can help bring security in the management of petroleum in Nigeria
1.4 RESEARCH QUESTIONS
1. Is scarcity of petroleum products caused by the drying up of wells thus leasing to a reduction in the production capacity
2. Does scarcity of petroleum products cause in told hardship to the generating Nigeria
3. Do petroleum product marketers induce scarcity in order to cash in on the situation?
4.
Has lack of maintenances of Nigeria oil refineries with reference to
turn ground maintenance been instrument to the recurring problem of
petroleum products scarcity
5. Has management inefficiency in the
running of Nigeria oil refineries been a major contributing factor in
the recurring scarcity of petroleum products
6. Does lack of
co-operation among the various agencies in charge of petroleum products
especially NNPC and PPMC in fashioning and implementing appropriate
petroleum products marketing strategies lead to scarcity of these
products.
1.5 HYPOTHESIS
1. Ho: Represented the “null” hypothesis while
Hi: Represnted the alternative hypothesis
2. Hi: Security agents has impacts in the distribution of petroleum
products
Ho: Security agents has no impact in the distribution of petroleum
products
3. Ho2 Government agencies/polices does not strongly affect the
strategies to managing products scarcity
H1: Government policies strongly affect the strategies to managing
petroleum products scarcity
4 Ho3 The performance of oil marketing companies affect the bridging
of while products
1.6 THE SCOPE (DELIMITATIONS) OF THE STUDY
The scope of this work span form 1937 when the search for crude oil started in Nigeria by Shell D Archy to present date.
The
researcher equally limited the scope of the study on petroleum product
scarcity to the what is technically called white product premium motor
spirits (PMS) Dual purpose Kerosene (DPK) and automotive gas oil
(AGO)which are the major problem of the common man.
Again for easy
coverage and acceptability the major oil marketing companies have been
oil marketing companies have been selected for purpose of this study and
findings will be taken as a proper representation of other oil
companies in strategies for managing scarcity of petroleum products in
the country and in Enugu metropolis
1.7 SIGNIFICANCE OF THE STUDY
Firstly this
research will go along way towards finding solution to the epileptic
supply of petroleum products in Enugu metropolis by offering strategies
and management styles necessary for a steady supply of product with a
minimum interruption.
This research also will be a sources of
inspiration and stepping stone for other who will venture into similar
search. The oil industries have immense potentials and it plays vital
role in the nation’s economy. A contributes significantly in raw
material development especially in petro-chemicals industries.
These areas holds the key to the nations economy and perhaps the pictures of it all.
There
are projects which under normal situation would grow and diversified if
managed properly. The state is spending a lot of fund and hard currency
in purchasing both foreign refined products and qualified personnel to
supplement the local resources. A well managed oil industry business
will always maximize profits which will enable it to go into research
and development.
Through this way it will eventually start sourcing
its raw materials locally thereby saving the foreign exchange which
would have been used for that purpose.
As an academic study it will
be of great value to those involved in fashioning out strategies for
management of petroleum products scarcity in the society.
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