ORIGIN AND DEVELOPMENT OF OIL INDUSTRY IN NIGERIA

   Petroleum was discovered in Nigeria in 1956 at  Oloiebiri in Niger delta after half a century of exploration the discovery was made by SHELL-BP. Oil is the single and most important commodity in the entire world today and also the largest resource for man’s demand for energy. Crude oil or petroleum is the oil believed to have originated from plants and animals remains over a long period of time.

                Crude oil is derived from organic molecules formed by living organisms millions of years ago, and this substance, organic compound formed over millions of small plants and animals and so it is known as hydrocarbon. Analysis of the hydrocarbons found ion oil deposits suggest that they may have come primarily from marine bacterial and other micro-organisms rather than higher plants and animals. If this hydrocarbon is left undisturbed, it can remain intact for several million years. However, when used, it is non-renewable. Some researchers observed that crude oil originates from dead aquatic and organic matters and materials which were remove gradually settled to the bottom of the sea or land and are covered with other materials. Like mud, silt and other sediments. During increase in pressure with resultant transformation of sediment organic materials and aquatic organisms into hard sediment rock, the process bacterial activity, heat and pressure change the plants and animals remains into crude oil.

          Crude oil exploration areas in Nigerians are found predominantly in marine environment of coastal areas which are fragile, vulnerable and complex containing critical habitat as well as valuable resources of great socio economic significance. The marine environment does not only provide sea-foods and other aquatic resources such as mangrove habitats for nurseries and feeding grounds for many commercially important fish and crustaceans, the exploration of these resources also provides employment opportunities to a large number of population that flock to the area. Oil production in Nigeria dates back to 1903 when the British mineral survey company began mineralogical studies of the country. In 1914, the British government passed the mineral oil ordinance. This ordinance was meant to exclude non British subjects from acquiring oil right in Nigeria. In 1937, the Shell ‘D’ Archy, the fore runner of the present Shell Petroleum Development Company (SPDC) from its base in owerri obtained from the colonial government a concession for Oil for Exploration License (OEL) and made the first successful investment in Nigeria as industry. Also, the development of oil mineral activities in Nigeria, exploration of oil and gas started in Nigeria, from 1908 to 1914 the German Nigeria Bitumen Corporation and the British Colonial Petroleum Company, practicing “Seapology’’, drifted. Fifteen holes down dip from the heavy oil seeps which occurred in create acetous Abeokuta formation near okitipupa.
Eventually, those holes were during, interest in exploration picked up again when reconnaissance work was undertaken by shell D Archy, Petroleum Development Company, in the 1950’s Mobil held a concession over more than half of Nigeria (Northern) and Shell BP held the Anambra basin, the Niger Delta rim the Niger Delta. Also, the shell’s exploration supports were rewarded when it discovered commercial oil on land at oloibiri in today’s Rivers state in 1956, Nigeria government policy or oil mineral exploration and exploitation when these started, the government’s interest was initially only limited to the collection of royalties, and other dues accerning to it from the oil companies and making rudimentary laws to regulate the activities of the oil industry. But some studies has observes that Nigeria has no real discernible government policy on petroleum in existence. An examination of Nigeria statues would reveal that the major constituents of the law which touch upon the exploration and production of petroleum, dates back to the mineral oils act of 1914 which was promulgated to regulate the right to search for win and work mineral oils.

           Nigeria has become sub-Saharan Africa’s most rapidly development country due to oil exploration activities and the development of oil industry in Nigeria has contributed very significantly to the socio-economic wellbeing of Nigerians. The Nigerian economy is heavily dependent on oil just like the economies of other Oil Producing and Exporting Countries (OPEC). Nigeria is practically a monoculture: about 80% of the national income, 90-95% of the export earnings and more than 90% of the foreign exchange revenues evolve from the oil sector. Oil affects the lifestyle of mankind directly and indirectly in many more ways. Some authors conclude that it is therefore the lifeline of man’s existence since oil and its associated products are used in virtually every sector of mans activities for example in domestic, industrial, commercial etc. However, in the industrial sector, machines and other automotive equipments cannot function without oil and if that is made possible through oil, then industrial production and expansion in the economic invariably depends on oil, which will guarantee growth. Therefore, oil is so important to every economic that its influence is both positive anresources .e.

          Accordingly, in Nigeria, the windfall from oil initiated what should be appropriately described as a curse because of windfall instantly obliterated the middle class and extended the consumption pattern of the upper class and created an illusion among the lower class. Other grave scenario includes inflation, neglect of the non-oil sector, environmental degradation of the oil-rich Niger Delta region, etc. despite the shortcomings, the advent of oil in Nigeria cannot in totality be regarded as an albatross to its growth. However, there has been no effort to bring the community into the show or establish a Plato from on which the oil company and the people could interact for metal understanding on their part. The phenomenal growth of Nigeria’s oil industry has led to consider solid and economic growth in the country. Reports shows that Nigerian average production of crude oil in a day in 1979 was only 5,000 barrels, but the report of Nigerian National Petroleum Co-operation (NNPC) today shows that over 2.4 million barrels of crude oil are exported.

       The proceeds from oil production in Nigeria have no doubt contributed to the social, economic and political development at the same time causing negative impact to both the environment and those living in that environment. It has rendered the ecosystem nearly useless due to oil spillage. The high level of environmental degradation is not unconnected with the activities of oil industries. In fact, in recent times, there have been many cases of spillage in some oil producing communities with its obvious consequences on farmlands; aquatic lives and air are all affected directly or indirectly. Environmental pollution or degradation is the immediate and direct consequence of oil production both in Nigeria and the world at large. It is not peculiar to Nigeria alone but the distinguishing mark is its management where there are found.

Markeet24  now asks a question: Can Nigeria survive her present crisis in the oil sector?

           Nigeria presently needs to diversify and lay hold on     neglected natural resources and build them up for trans- generational progress as Nigeria future in oil is no longer bright. youths and young entrepreneurs should therefore employ prudence, pragmatism and discernment in deciding where to redirect their resources and focus.    
                 
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