The impact of oil in the development of algeria and nigeria

People depend on land to grow their cattle as they have through the centuries. Main constraint, however, is the lack of national infrastructure and facilities for waste disposal.

It showed that oil revenue rose from N According to Anyanwuit started with exploration activities by the German bitumen corporation. For many African countries, economic growth was mainly driven by high commodities prices especially oil prices. Furthermore, an analysis of the negative effects of oil industry in Nigeria, showed that in the Niger Delta; Oil industries activities have continued to pose serious environmental problems affecting health, social and economic activities, sustainable development and ecological balance.

Further discoveries at Afam and Boma established the country as an oil producing Nation. As the leading sector of the economy, the oil industry should have some spill over into the other sectors of the economy such as technological transfer forward and background linkage.

Apart from the health risks to which they are exposed to by pollution, they suffer from economic activities. The weekend vanguard of may 20, in its editorial said for many situation immediately drew in their minds, the horror of the Jesse fire disaster of where devastating petrol inferno roasted over persons alive.

In view of the controversy with respect to the relative contribution of the oil sector of the Nigeria sector as compared with the other sectors, it is imperative to establish empirically the relative impact of the oil industry in the Nigeria economy.

Oil Sector – Impact On The Development Of The Nigerian Economy

Africa's oil and gas production is evolving as its economy grows, and large, unexploited reserves are being tapped. The military regime oversaw the implementation of a number of other important milestones related to oil: The theory cad also lead to emergence of inflationary pressures that bring about increase in demand due to heavy investment in the economy.

In his own view in order to conserve oil reserve he called for: The exclusion of easterners from power caused many in the east to fear that oil revenues would be used to benefit areas in the north and west rather than their own. Geopolitical factors are the main causes that drove up oil prices in producing countries.

Production of crude oil began in and ina total oftonnes of crude oil was exported. The government has set a challenging production target of 6.

Environmental Impact Assessment Reports

However, with these problems stated above as regards the lapses of the oil sector towards the development of the economy. Several communities in Delta State have also benefited from electricity through the activities of oil industries in their communities.

Investment opportunities exist in areas of survey and mapping. History and politics[ edit ] See also: The fiscal deficit worsened with the plunge in global crude prices, which also cut foreign reserves by nearly half. It has received a lot of media attention because of the enormous environmental and economic damage caused in the region.

About casualties and over hospital cases were reported during the river spillage. The income investments created is regarded as the demand effect and the capital stock which it increases may be regarded as the supply effect of investment. This led to relations between oil companies and the federal government becoming strained, with the government at one point accusing the oil company Safrap now TotalFinaElfbut Elf until of favouring Biafra and enlisting the aid of France for the Biafran cause.

While the conducted f-test showed that the joint influence of the explanatory variables is insignificant, the R2 test indicates the poor explanatory power of the model, which is also a pointer. Thus, African economies will be vulnerable to variations in oil prices and growth may sharply fall in case of a reversing trend of the oil market.

Nigerian regulations are weak and rarely enforced allowing oil companies, in essence, to self-regulate.

Oil industry in Nigeria today is one of the leading sectors of the economy. It is the largest wetland and maintains the third-largest drainage area in Africa. By the colonial government had granted the state-sponsored company, Shell then known as Shell D'Arcy a monopoly over the exploration of all minerals and petroleum throughout the entire colony.

The ash residue also contributes both to soil and water degradation. Nigeria Brief, community issuesl vol. The petroleum industry covers the exploration and production of crude oil as well as petroleum refining, marketing and servicing.

Petroleum industry in Nigeria

The prominent industry is a major provider of employment for the teaming population of Nigeria after agriculture. Nwokorie ruled in Benin City that the damaging and wasteful practice of flaring cannot lawfully continue. Therefore, the presence and activities of the oil industries have created more opportunities for employment in Nigeria.

EIA is a good project development strategy that forces developers to look through the life cycle of a project from the conceptual stages through design, construction and production phases to the decommissioning or abandonment phase; In so doing, the impacts of the project on the environment though life cycle are identified, modeled and evaluated with the objectives to mitigate the effect of all negative impacts and enhance the benefit of all positive effects in their host communities.

Economic Growth In Nigeria – Impact Of Oil Industry

The IMF estimates that Algeria has the second-cheapest domestic price for natural gas in Africa, after Libya, as retail prices have not changed since and are now below operational costs. According to Sonatrach, roughly two-thirds of Algerian territory remains underexplored or unexplored.

All blocks are expected to be awarded in. Nigeria is the largest oil and gas producer in Africa. Crude oil from the delta basin comes in two types: light, and comparatively heavy – the lighter around 36 gravity and the heavier, 20–25 gravity.

Both types are paraffinic and low in sulfur. Oil prices have remained persistently high and volatile in the past few years and according to estimates they may remain so at least until The Brent crude spot price, which averaged US $ per barrel inis projected to remain above US $ per barrel at an average of US $ and US $ per barrel in andrespectively (U.S.).

Algeria has five oil refineries with a total nameplate capacity ofbbl/d, according to the Arab Oil & Gas Journal. The country's largest refinery, Skikda, is located along Algeria's northern coastline and is the largest refinery in Africa.

In Nigeria, we complete Environmental, Social and Health Impact Assessments (EIAs) for all our development projects, in accordance with Nigerian Law.

The impact of oil in the development of algeria and nigeria

The aim is to reduce the environmental and social impact of our activities as much as possible and look for benefits for affected communities. OIL AND GAS DEVELOPMENT IN NIGERIA Nigeria is a federation consisting of 36 states and the federal capital territory of Abuja With a population of about million people,17 it consists of more than ethnic groups Nigeria enjoys ‘Environmental Impact Assessment Challenge in Nigeria’.

Projections indicate progress in this direction, due in part to improving performance in oil and gas and rising oil prices since June Headwinds Inbudget consolidation led to 28% lower spending on equipment and a .

The impact of oil in the development of algeria and nigeria
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