handbook of petroleum refining, oil and natural gas corporation share price,Welcome to Petroleum Equipment Company, your one stop source for all retail, wholesale, commercial and industrial petroleum equipment needs.
The Nigerian Oil Trade
History of the Nigerian Oil Business – The Nigerian Nationwide Petroleum Company is the government agency or a authorities owned company which is engaged with the responsibility for the public sector involvement in the oil trade. Its history goes back to the late fifties when the production of oil for export (in 1958) necessitated that authorities arrange a machine for the co-ordination of the activities of the nice importance to our national economic system.To order the whole Mission Materials, Pay thr Sum of N3,000 to:
The general public sectors of the Nigeria oil industry began as a section within the mines division of the ministry of Lagos affairs in 1958. it’s originally often known as one man unit. The obligations of that unit increased very quickly as oil operations expanded tremendously in scope, amounting to a victual explosion after the first crude oil export.
In 1963, with oil turning into relatively extra significant within the national financial system, the hydro carbon section of the mines and energy, by this time, the senior workers strength had risen to four, excluding 4 skilled engineers. Discipline officers had been opened in Port-Harcourt and Warri I 1962 and 1997 respectively in order to cowl field operations more effectively, and continued to increase considerably. Twelve (12) years after its establishment, the general public sector of the oil trade may solely boast of a handful of nicely skilled engineers who have been government watch dogs. Within the complex and extremely development industry. If had a big establishment on paper however was handicapped in a quantity of ways, together with very impossibility competitors from the personal sector within the labour market.
Having made its impact felt throughout, the oil and natural gas corporation share price division of petroleum assets was uplifted to a full fledged ministry in 1973, the ministry of petroleum sources and power which in 1971 as an integrated oil company to expose, produce, transport course of, refines, distribute and market crude petroleum and its refined merchandise.
It was established to carryout government’s effective’s participation within the oil industry.
The cheque history of Nigerian National Petroleum Company ended with its eventual supervisor with the former ministry of petroleum company (NNPC), which came into being on 1st April, 1997, as a result of Decree No three of 1997.
This legal instrument establishing the company gave it a uique characteristic, that is the creation of an operation or business goal and a regulatory arm vested within the petroleum inspectorate.
This the position of government as progressed forms primarily regulatory to direct involvement in oil exploration and exploration.
NIGERIAN’S Improvement AND OIL Trade
In 1960, when Nigeria received her independence, the ministry of Nigerian’s financial system was agriculture. By the tip of the primary decade of it existence, as a sovereign nation, agriculture was changed by oil as an important income earner for the nation. As can be seen kind the World Bank report 1970 -1984, the contribution of petroleum to the total revenue of the nation was over 70% on the common. As a international exchange earner, it accounted for over eighty% of Nigerian foreign exchange incomes on the average between 1970 and 1084.
Because of enormous revenue which the nation derives from oil, authorities has been able to interact in lots of growth projects which embrace the following:
Education: Training is likely one of the areas the place government has invested a lot of money. Between 1970 and 1984, the variety of primary and put up primary establishments in some a part of the federation has quadrupled. Inside the same interval, the number of universities has risen form 5 (universities of Ibadan, Nsukka, Ife, Lagos and Ahmodu Bello) to over 200 (together with federal and state owned universities). Some faculties of education have been up graded to degree awarding establishments. These developments are attainable because of enormous revenue derivable type oil.
Industry: Many industries leave been established since the era of oil growth. The iron and steel business with firms in various components of the country, the petro-chemical company and the varied oil refineries are among the industries which have been established. They contain huge expenditure and with-out numerous revenue coming from oil, a few of these industries wouldn’t have been established as the quantity of income type other sources can’t be enough to satisfy the income demand of these industries. The employment opening which these industries create are excessive certainly.
PROVISION OF INFRASTRUCTURES AND SOCIAL AMENITIES:
The growth of infrastructural facilities, social amenities and the provision of new ones are possible due to the increase in oil revenue which the federal authorities derives from oil.
The growth and modernization of NEPA, the development of fine network of roads and flyovers in different parts of the nation, the building of many general and instructing hospitals the supply of pipe borne water and other social amenities are attainable because of enormous quantity of revenue which the federal authorities will get type oil.
Revenue from oil has helped the federal authorities to embark on many growth projects which we cannot be enumerated.
The Nigerian national petroleum company (NNPC) is the one indigenous oil company in Nigeria (as talked about above) that engaged in prospecting for oil activities. It carries out the policy directive of the federal government which respect to oil exploration and production.
The value of oil and the resultant income which is derived kind its have been on the decline since 1981 with the result that the federal government is finding it tough to satisfy its monetary commodities. In 1982, the civilian authorities introduced what is called austerity measure”. The goal of the measure was to revamp the financial system by way of the discount of the amount of expenditure on imports and the encouragement of native production of uncooked supplies for industrial makes use of.
The fall on oil income and the subsequent reduction of the income type the oil sector might be thought to be a lesson in disguise for Nigerian government for one thin, it has proven the federal government that dependence on one source of revenue isn’t good for any country. For an additional, it has proven that dependence on imported items of all kinds can’t in any manner help the nation to develop. The country is now making an attempt to regulate its expenditure sample to reflect economic realities of the time.
CONTRIBUTIONS OF THE PETROLEUM Industry
To Nigeria’s Economic (optimistic and Destructive Effect) as follows:
One of the constructive effect of petroleum industry to Nigerian Financial system have been
(a) Major International Exchange Earner: Here the majority of the foreign exchange coming into Nigeria is generated kind crude oil export. For instance in 1958, it was about N2 million while in 1974 it had jumped to N5366m.
(b) Authorities Revenue: This is available in form of rests, Royalties licence charges, petroleum profit tax. It rose form a mere N28,000 in 1958 to N2872 million I 1974. The oil firms are often called some of the best paying establishment in the nation.
(d) Source of Gas and power: The merchandise from petroleum, like petrol, kerosene and diesel are wanted as fuel by each individuals, and companies for domestic and industrial goal.
(e) Attracting overseas investments: That is yet another positive impact which petroleum business contributed to Nigerian’s Financial system.
This trace the truth that many international firms have made great investment within the industry each in exploration and exploitation of the product. These embody Mobil, Agip, Elf and many others.
Destructive Effect OF PETROLEUM Trade IN NIGERIA Economy AS FOLLOWS:-
A. Suppression of Agricultural Development: The discovery and exploitation of petroleum some how ledge to the abandoning of Agricultural efforts. This worsened the issue of rural -city migration with the consequence that Nigeria turned a internet importer of food.
B. Uncertainties in government revenue’s: the nature of the world market by which petroleum is offered is ver risky Hence the value of petroleum fluctuates extensively leading to scarcity in government expected revenues type that sector. This occurred throughout oil gulute and infrequently led to austerity measure by the federal government.
C. Uncertaintities in foreign trade: for the reason that nation depends on petroleum as a serious foreign change earner fluctuations always disorganize the country’s effort ot import both raw materials and finished items.
D. Ecological issues: petroleum exploitation additionally leads to pollution of rivers, or the soil. These have antagonistic impact on our economic life.
E. Political Problems: The issue of revenue allocation principally arose rom the right way to share the income accruing from petroleum income.
Mr Augustine E. 1996 explains the perform /Function of Nigerian National Petroleum Corporation (NNPC) as follows:
NNPC as a government owned firm that characterize them within the petroleum industry plays many very important roles in the world of prospecting, manufacturing, refining, advertising and marketing and administration of petroleum product similar to :-
i. Oil exploration: NNPC employs the service of geologists and geoscientists to search the fields of the country to determine the presence of oil in a given place. The company also determines the potential of exploiting the petroleum product for he effectively being of the nation.
ii. Production of Petroleum: The NNP establishes industrial plats which pump out crude oil wherever it’s discovered. That is to say that the corporation builds its own oil wells with a view to exploits the oil deposit.
iii. Transportation of petroleum: There are pipelines and fleet of tankers autos which the NNPC maintains for the purpose of lifting crude oil form oil wells to refineries. The refined petroleum merchandise are conveyed at the assorted distributive out lets for sales.
iv. Refining of Petroleum: The NNPC has refineries at Port Harcourt, Warri and Kaduna which via fraternal distillation process separate. Crude petroleum into many mixtures. The method entails intensive healing of the crude oil to enable the separation into mixtures. Like petroleum diesel, kerosene and lubricating oil. The by products of petroleum are also useful.
v. Advertising perform: The sales of the petroleum products is one other function of the NNPC. It maintains subsidiaries which market the petroleum products in wholesale and retail levels. The NNPC tankers are filling stations everywhere in the nation are used for this goal of promoting kerosene, cooking gasoline, petrol, Lubricating oil, diesel and so on.
vi. Implementation of oil Coverage: The oil policy aims of the federal authorities are achieved by means of the NNPC which is an company of the government. So it implements the government policy on oil manufacturing level transportation and determination of oil costs.
vii. Enhances The Nigeria’s Image: The membership of Nigeria in open increase her political image within the worldwide degree.
viii. Regulation of different Insurance policies: The Federal Authorities also employs the service of NNPC to manage the actions of the oil firms in Nigeria. The NNPC controls points concerning oil exploration license (OEL), oil prospecting licenses for the operation of filling stations in Nigeria.
ix. NNPC additionally play an important position by means of initiating and constructing of petrol-chemical trade by co-operation with foreign traders.
Within the distribution of fuel spherical the country, there are quite a lot of problems, which hamper it effectiveness. Some of these problems might be clarify bellow:
1. One of the vital inevitable issues that faced the distribution of gasoline in Nigeria is when there’s any fault within the refinery. That is when pipelines which are the main routes by which the refined gas are being distributed to depots will not be working effectively, the gasoline which as refined shall be stored there on the refinery because of this drawback, there shall be not means by by which these gasoline might be distributed.
2. Transportation: means of transportation of fuel is one more downside that enhances the distribution of gasoline in Nigeria.
Filling stations which were construct in the rural areas due to bad street, find it troublesome to transport gas form the city to rural areas.
As a result of of these difficulties in the transportation lead, to fuel scarcity. This traces the fact that some tankers will fail along the street which in some circumstances brings about damages of the fuel and automobile also.
Three. Tanker drivers or middlemen additionally contribute to the problem of gasoline distribution. When a tanker driver is requested to distibut4e gas to Vertain Company (gas station) due to zeal and greed to make quick money, the tanker drivers will just divert the gas to some other route most likely to the black entrepreneurs.
Four. Capital Inadequacy: Inadequate of cash in many ways contributed to problem of gas distribution. Within the case of building filling station, the price is very excessive there by discourage the supposed investor to speculate, which brings about problem in distribution because the refined gasoline will remain in NNPC.
NNPC AND DISTRIBUTION OF PETROLEUM IN NIGERIA
The advertising and marketing of petroleum product in Nigeria was begun within the early century by secondary vacuum oil company (the predecessor of cellular) which marketed sunflower – kerosene.
This later expanded I the mid seventies to include the seven major advertising firms,
vii. And unipetroleum.
They utterly controlled the advertising and marketing and distribution of refined petroleum merchandise.
An eight firm Eif marketing later Joined the group, as properly because the independent entrepreneurs (enterprising Nigerians are inspired to participate in petroleum product distribution) with the making certain growth of economic actions. In the nation, after the Nigerian civil struggle, the nation witnesses an unprecedented explosion I the demand for petroleum products in 1970’s.
The non-public marketing corporations may now not cope with this elevated home demand for product and this resulted in severs shortage of petroleum product all over the country. This can be constituted a significant bottle neck to development within the country.
Authorities at this was subsequently pressured to level enterprise into petroleum merchandise distribution and advertising and marketing to assist clear up the ensuring issues and ease the suffering of the shoppers. To facilitate the even distribution of petroleum product, authorities determined to construct a network of pipe line and storage depots all around the country for the efficient distribution of merchandise 137 1979, a complete of 2001 kilometers of pipe traces linking 16 storage deports to the refineries has be constructed everywhere in the nation.
Four “white” merchandise were dealt with by this transportation and storage system particularly:
a. Premium motor spirit (Petrol)
b. 5 star motor spirit (Petro.)
c. Deal goal kerosene
d. Computerized gasoline oil (diesel)
The advertising firms buy these merchandise at the NNPC depots and then to their varied filling stations. In addition to those, depots and pipe line facilitate various pupation that’s located on the pipeline routes to further enhancement of regular supply of petroleum product.
Problems OF Gas DISTRIBUTION IN NIGERIA
Within the distribution of gas spherical the country, there are lots of issues, which hamper its effectiveness. Some of these issues will be defined bellow:
1. Considered one of the problems of gasoline distribution in Nigeria is when there is any pipelines that are the most important routes by during which the refined fuel are being distributed to depots are usually not working effectively, the gasoline which are refined will likely be stored there on the refinery because of ineffectiveness of pipelines.
Therefore, there can be no any means by which these refined gas will be distributed.
2. Transportation downside: technique of transportation is yet another drawback which enhances the distribution of fuel in Nigeria.
On this case, filling stations which had been built within the rural areas finds it tough to transport gas type the urban to rural areas due to dangerous road.
These additionally contribute to the gas scarcity for those individuals living in that rural area.
1. Tanker drivers or middlemen additionally contributed to issues of fuel distribution. The place a tanker driver is requested to distribute gas to certain folks, due to greatness and the zeal to make quick money, will simply divert the gas to another route in all probability to the black entrepreneurs.
Financial Impact OF Gasoline SCARCITY IN NIGERIA:
Fuel scarcity has prompted a whole lot of drawback to our society/economic system within the sense that value of products and services have risen so high that individuals find it tough to afford. This is brought on by the shortcoming of the farmers within the rural areas to deliver their farm product to the urban center due to the high value of transportation.
That however, there are individuals who strive to convey their farm product to the city areas regardless of the excessive value of transportation with the intention of selling them at the next value with the intention to cowl their expenses. It’s then, your entire inhabitants that suffers for it.
Fuel scarcity has additionally affected the whole nation and Enugu metropolis inclusively. This is because oil is a major supply of earnings for the society and since there may be fuel scarcity, the federal government can’t export sufficient oil to international countries. Because of this, the federal government can’t get enough overseas change of the nicely being of the society as an entire.
Industrialists are not omitted in this matter. The value of raw supplies has risen so high due to the cost of transportation and they increase their manufacturing cost and din order to cover this price and make profit. They often increase the worth of their merchandise.
Individuals as an entire Due to gasoline scarcity, automotive homeowners increase the value of transportation as a result of they find the troublesome to purchase fuel, even whether it is introduced, the price with is so exorbitant there by inflicting people to pay larger for transportation.
THE Function OF TASKFORCE ON THE Management OF Gasoline SCARCITY
The duty force is the team arrange by the government to help maintain peace and order within the distribution of gas within the filling stations. It’s because since the issue of gas scarcity started, loads of issues have risen making the much less privileged not to buy fuel.
There are quite a few roles performed by the duty force when will enumerate bellow:
1. Because of Insufficiency of gas within the filling stations, consumers or customers struggle for the gasoline many a times, struggle for it. It is without doubt one of the duties of the duty drive to settle such cases and make sure that there’s peace and order.
2. The duty drive ensures that the tankers drives don’t divert the fuel to black marketers.
Three. The roles of the task power involve ensuring that automobile house owners don’t buy gasoline with jerry can or the rest reasonably than their own automotive tanks.
Four. Regulation Role: Due to fuel scarcity, filling station owners improve the usual price of gasoline I other to make an excessive amount of gain, it’s the duty of task power to see that these nonsense is stopped.
5. Because of gasoline scarcity, folks formed the habit of giving bribe to the filling stations homeowners so that gasoline can be offered to them at any quantity they want. This (continued until the introduction of task pressure to see that this nonsense is stopped.
5. Because of gasoline scarcity, folks formed the habit of giving bribe to the filing station’s homeowners so that gas will be offered to them at any quantity they need. This Continued till the introduction of activity force which introduced it to an finish.
SCARCITY OF Other Important COMMODITIES AND ITS Impact
The essential commodity which is going to discuss its scarcity is electricity. In our society at this time, most business can’t operate with out the use of electricity for example, salons, printing press, duplicating international locations, hospitals grinding mills etc.
In grinding mills for instance, maize could be grinded, irrespective of the amount at not more than the quantity of N100 (hundred Naira). But once there isn’t any electricity, the mills operators will resort to using generators. By the used of generators which is operated by fuel the value of which might be modified on the maize might be larger than when it’s grinded by the use of electricity. When the proprietor of the maize page increased amount for the grinding, supposing he/she makes use of the maize for business like to extend the amount he will promote the oil and natural gas corporation share price flour.
When there is no such thing as a electricity, the folks working duplicating machines will use generation. Thereby increasing the quantity charged for duplication.
For instance in IMT, when there may be electricity, college students were charged N2.50 for photocopying however as soon as the electricity, students have been charged N2.50 for Photocopying but once the electricity is off, the amount modified will rise to N5, for one copy we can see type these research work, that the scarcity of electricity as an important commodity will affect the individuals adversely. Within the sense that they are going to be pressured to pay increased amount if they need to accumulate goods or companies from the electricity customers when the electricity just isn’t available.
“THE Economic Impact OF Fuel SCARCITY IN NIGERIA
(A CASE Research OF ENUGU METROPOLIS)”
Click Here To get the total Venture Analysis Work/Material
To Get Accounting Challenge Materials, Click on Here!
The Nigerian Oil Industry – An summary
If you have any questions pertaining to in which and how to use Synthetic Resin Equipment, you can speak to us at our web page.