NIGERIA'S UNTAPPED RESOURCES AND THE ENVIRONMENT (A CASE STUDEY OF GAS)

CHAPTER ONE:

INTRODUCTION

1.1            BACKGROUND TO THE STUDY

With 188 trillion standard cubic feet (SCF), of gas resources, making Nigeria the seventh most endowed gas nation in the world and number one in Africa, the nation could have been immuned from the plummeting crude oil business if strategies focus had been made on this strategic option.

Oil and gas experts believed that Nigeria could even earn more from full utilization of gas resources than what it is currently been realized from crude oil exports. But the reverse is the case, as the country produces about 1.35 TCf of dry natural gas, ranking among the world’s top 30 largest natural gas producers (Emonena 2006).

1.2     STATEMENT OF THE PROBLEM

Over four decades now, crude oil has been the major source of revenue, energy and foreign exchange for the Nigerian economy. However, the nation’s income generating sector has been under severe attack from plummeting crude oil prices, pipeline vandalism/theft, declining production and inability to get buyers.

Nigeria’s crude oil revenue has continued to suffer from continuous decline since 2012.  

According to Organization of Petroleum Exporting Countries (OPEC) 2014 Statistical Bulletin, the country’s crude oil earnings dropped from $94.6 million it recorded in 2012 to $89.3 million in 2013 and $76.9 million in 2014. Already, the country’s monthly crude oil earnings for 2015 have also been on the decline.

The possible way forward for the nation’s economy is diversification from crude oil and venture into some untapped natural resources like Gas.

1.3     OBJECTIVE OF THE STUDY

The aim and objective of this study is to delve into the untapped resources of this great nation Nigeria and to proffer solution on how it could be tapped and used for immense benefit of the country so that emphases on crude oil will be shifted to natural gas.

1.5     RESEARCH QUESTIONS AND/OR HYPOTHESES

To ensure an in-depth research work with a view to providing best solutions to problems identified, the study will make use of the following questions:

i.                   Could untapped gas be harnessed soon?

ii.                 Is there a correlation between untapped gas and economy growth/development in Nigeria?

iii.              Are there efforts by the Nigerian government to harnessing these resources?

iv.              What are the pros and cons of harnessing these resources?

v.                 Is there an end to gas flaring in Nigeria?

vi.              Can Gas substitute Crude Oil?

Based on the research questions already mentioned, the following Hypotheses were formulated: 

There are two types of hypotheses, the Null hypothesis that takes the negative form and the Directional or Alternative hypothesis that takes the positive form.

Let H₀         stand for Null hypothesis

Let H₁         stand for Alternative hypothesis

HYPOTHESES I

H₀:    Untapped Gas cannot be harnessed soon.

H₁:    Untapped Gas can be harnessed soon.

HYPOTHESES II

H₀:    There is no correlation between untapped gas and the nation’s economy growth/development.

H₁:    There is a correlation between untapped gas and the nation’s economy growth/development.

1.6            SIGNIFICANCE OF THE STUDY

The significance of the study cannot be over-emphasized given the continuous devaluation in the crude oil in the international market.

Thus, the study is therefore significance because; it will help in planning, decision making, management and allocating resources to the right channels that will boost our economy.  It will also not only delve into the untapped resources, but will go a long way to proffering solution to how they could be harnessed. The study will be of immense benefit to researchers and students looking for more information on this topic.

Another significance of this research is that, it will help in finding ways of harnessing other natural resources that are dormant.

1.7 SCOPE OF THE STUDY.

The study aims at investigating the untapped natural resources in the Nigeria and its environment (a case study of Gas). 

However, to cover the whole country will be cumbersome.  Thus, the researchers selected Nigerian National Petroleum Corporation (NNPC),  Abuja, which the researcher could conveniently cover. All the department and cadres of employees were covered in the study to examine the untapped Gas.

1.8LIMITATIONS OF THE STUDY

In the course of carrying out this research work, some difficulties were encountered. These constraints were however managed. Among these were time, materials and financial constraints.

TIME: Time factor was one of the constraints faced by the researcher; however, the researcher took time management seriously, as the study was successful. So many useful times was involved to make the study as the researcher had to combine full time employment with the collection of data for the work.

MATERIALS: It is not easy for the materials to be collected or obtained due to limited books, journals and other reference materials, particularly obtaining information from the case organization was a tedious exercise.

FINANCE: Financial problem was also encountered by the researcher in the course of the work- going to various libraries, stay connected online for materials etc.. But notwithstanding the above constraints, the quality of the research work could not be impaired.

1.9            OPERATIONAL DEFINITION OF TERMS

GAS: a ​substance in a ​form like ​air that is neither ​solid ​nor ​liquid: Oxygen, ​hydrogen, and ​nitrogen are all gases. ​poisonous/​inflammable/​toxic gas

UNTAPPED:  (of a resource) not yet exploited or used. Not drawn upon or utilized untapped markets>

RESOURCES:  a stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively..

CRUDE OIL:  A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits. Crude oil can be refined to produce usable products such as gasoline, diesel and various forms of petrochemicals.

SCF:           Standard Cubic Feet

TCF:           'Trillion Cubic Feet - Tcf' A volume measurement used by the oil and gas industry. A trillion cubic feet (1,000,000,000,000 cubic feet) is a volume measurement of natural gas that is equivalent to approximately one Quad. A Quad is an abbreviation for a quadrillion (1,000,000,000,000,000) Btu's.

BCF: A natural gas industry term typically used to measure the amount of natural gas that is either untapped in reserves, or being pumped and delivered over extended periods of time (such as months or years). The "equivalent" is used to describe the equivalent amount of energy liberated by the burning of this type of fuel versus crude oil, with every 6,000 cubic feet of natural gas being equal to one barrel of oil.