The physical presence of the oil industry in Nigeria is so large and has resulted in a lot of activities in the upstream sector which has deleterious effects on ecosystem stability and local biodiversity – which the peoples‘ livelihoods depend upon. This research provides an overview of environmental issues in the oil and gas industry in Nigeria with specific focus on oil spillage and also highlights the best approaches to achieving high environmental performance in the oil and gas industry in Nigeria. The materials for this research include the use of existing reports on the oil and gas industry in Nigeria to acquire the required information. Comparative study method was used in which the data obtained Nigerian National Petroleum Company Annual Statistical report for 2013 and Shell Nigeria Monthly/ Annual statistical Reports for 2013 was analysed and logical deductions and sequential presentation of facts were thus made. It was observed in this study that oil spills occur more as a result of vandalisation than rupture during operations. Shell Nigeria has a record of oil spill amounting to about 3.038 billion barrels over a period of ten years (2003 to 2012) from their pipelines alone. The number of incidences of oil spill recorded by Shell Nigeria reduced within the period of 2007 to 2013 from 320 to 200 respectively. Also, it was observed that since 2010 the volume of oil spill has dropped significantly from 102, 000 barrels of 2009 to 20,000 barrels in 2013. Furthermore, the regulatory bodies are not working effectively and some of the country‘s regulations are out of date. Hence, a need for the government to review the regulatory laws and device an efficient means of enforcing them whenever necessary
TABLE OF CONTENTS
Title Page i
Table of contents vii
List of Tables ix
List of Figures x
CHAPTER ONE: INTRODUCTION 1.1 Background of the study 1 1.2 Statement of the problem 3 1.3 Aim and objectives 4 1.4 Justification 4 1.5 Research Scope 5 CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction 6 2.2 Overview of Environmental issues 7 2.2.1 Sources of Wastes 7 2.2.2 Causes of oil spillage 10 2.2.3 Areas affected 11 184.108.40.206 Rain forests 11 220.127.116.11 Arctic regions 12 18.104.22.168 Off shore 12 2.2.4 Managing wastes 13
2.2.5 Environmental Regulatory Agencies in Nigeria 16
2.2.6 Environmental Regulations 18 CHAPTER THREE: MATERIALS AND METHODS 3.1 Materials 21 3.2 Method of data collection 21 CHAPTER FOUR: RESULTS AND DISCUSSION 4.1 Current Practices of Shell Nigeria on Environmental issues 23 4.2 Oil Spill issues encountered during operations 25 4.3 Shell Report showing Monthly Oil spill incidences in Nigeria 25 4.4 NNPC Reports on Oil Spills in Nigeria 28 4.5 Amnesty International Report on Oil Spills in Nigeria 32 4.6 Data Analysis 34 CHAPTER FIVE: CONCLUSION AND RECOMMENDATION 5.1 Conclusion 35 5.2 Recommendation 36 References 38 APPENDICES Appendix I 43 Appendix II 44
INTRODUCTION 1.1 Background of the Study The oil and gas industry is truly global, with operations conducted in every corner of the globe, from Alaska to Australia, from Peru to China, and in every habitat from Arctic to desert, from tropical rainforest to temperate woodland, from mangrove (as is the case in the Niger Delta region of Nigeria) to offshore. The global community will rely heavily on oil and gas supplies for the foreseeable future. World primary energy consumption in 1994 stood at nearly 8000 million tonnes of oil equivalents; oil and gas represented 63 per cent of world energy supply, with coal providing 27 per cent, nuclear energy 7 percent and hydro-electric 3 per cent (BP Statistical Review of World Energy, June 1995). The exploitation of oil and gas reserves has not always been without some ecological side effects. The challenge is to meet world energy demands, whilst minimizing adverse impact on the environment by conforming to current good practice. Oil spills, damaged land, accidents and fires, and incidents of air and water pollution have all been recorded at various times and places. In recent times the social impact of operations, especially in remote communities, has also attracted attention. The oil and gas industry has worked for a long time to meet the challenge of providing environmental protection. Much has already been achieved but the industry recognizes that even more can be accomplished (Adati, 2012). The United Nations Conference on Environment and Development (UNCED) held in Rio de Janeiro in June 1992—‗The Earth Summit‘—focused world attention on the close links that exist between the environment and socioeconomic development. The Summit reviewed global environmental issues and resulted in two conventions (the Framework Convention on Climate
Change and the Convention on Biological Diversity), as well as the Rio Declaration and Agenda 21—plan of action. The central message of Agenda 21 is one of interdependence and cross sector partnership, and the plan of action provided a new approach to the wide-ranging socio-economic and environmental challenges facing the world community. It is no news that Nigeria is one of the leading oil producers in the World, and that the fragile Niger Delta region is the seat bench (or hub) of oil and gas production of the country. Presently, 90% of Nigeria‘s gross domestic product (GDP) comes from revenues accruing from crude oil sales (Zabbey, 2012). The World Bank estimated that the oil sector accounts for 95% of Nigeria export earnings and 85% of the governments revenues as of 2009. Currently in 2010 the International Monetary Fund (IMF) estimates that the oil sector accounts for over 95% of Nigeria export earnings and about 65% of the government‘s revenue. According to Oil and Gas Journal (OGJ), Nigeria has an estimated 36.2 billion barrels of proven oil reserves as of January 2010. The majority of the reserves located along the Niger Delta River, offshore Bright of Benin, gulf of Guinea and the Bright of Bonny. The current exploration activities focused in deep and ultra-deep offshore and some activities in the Chad Basin located northwest of Nigeria (Ukoli, 2005). In 2008, Nigeria‘s crude oil production averaged 1.94 million bbl/d making it the largest oil producer in Africa with current production slightly over 2.2 million bbl/d as of 2009. Also, Energy Information Association (EIA) estimated that Nigeria‘s production could have reached 2.7 million barrels/day (bbl/d). Recent offshore developments combined with the restart of some shut-in onshore production have boosted crude oil production to an average 2.03 million bbl/d as of 2010 (Adati, 2012). The country operates a joint venture with the TNCs. The government, through the Nigerian National Petroleum Corporation (NNPC), owns 55% share in the Joint Venture; SPDC 30%, ELF Petroleum Nigeria Limited (a subsidiary of TotalFina) 10% and Agip 5%. (Zabbey, 2005)
In recent times, however, production rates keep fluctuating due to insecurity occasioned by threats of local militias in the delta. As at 2005, Nigeria‘s daily production of crude oil reached 2.2 million barrels per day (b.p.d.) and was still on the increase (Adati, 2012). Table 1.1 below shows the physical presence of the oil industry in the Niger Delta. Table 1.1: The physical presence of the oil industry in Nigeria.
1) Land area within which the networks of pipelines are located
2) Number of oil wells drilled
3) Number of flow-stations
4) Length of main oil and gas pipelines in the region (flowlines between oil wells and flow-stations not included)
5.) Number of export terminals
6). Number of communities hosting oil/gas facilities
Source: Steiner (2008) 1.2 Statement of the problem The Niger Delta is densely populated by about 20 million people. The density in the region continues to expand as oil operators recklessly occupy available lands, and as people, often times, are forced to migrate when hitherto residential areas become uninhabitable due to industrial mess. Oil exploration by seismic companies involves surveying, clearing of seismic lines and massive dynamiting for geological excavation (seismic testing). Virtually every aspect of oil exploration and exploitation has deleterious effects on ecosystem stability and local biodiversity – which the peoples‘ livelihoods depend upon (Zabbey, 2005). Thus, UNEP (2006) summed the impacts of Oil spill in the Niger Delta as follows: 1. High mortality of aquatic animals. 2. Impairment of human health. 3. Loss of biodiversity in breeding grounds.
4. Vegetation hazards.
5. Loss of portable and industrial water resources. 6. Reduction in fishing and farming activity. 7. Poverty, rural underdevelopment and bitterness. Generally, the environmental impact of oil and gas can be classified into: human, socio-economic and cultural impacts; or atmospheric, aquatic, terrestrial and biosphere impacts. These highlighted environmental impacts of oil and gas requires that an up-to-date approach to environmental control be put in place to address the issues. Hence the need to analyse these issues and current control measures being administered to ascertain their effectiveness. 1.3 Aim and Objectives The aim of this research is to assess the oil and gas industry in Nigeria in relation to the causes of oil spillage, its impact on the environment and the control measures being employed to reduce it to the bearest minimum. The specific objectives of the study are:
To provide an overview of environmental issues in the oil and gas industry in Nigeria and identify the causes of oil spill in the oil and gas industry in Nigeria.
To analyse the working environmental control measures applied by oil and gas companies in Nigeria taking a case study of Shell Nigeria with particular focus on oil spill incidences.
To recommend the best approaches to achieving high environmental performance in the oil and gas industry in Nigeria.
1.4 Justification The primary measure of the environmental impact of petroleum wastes is their toxicity to exposed organisms. The toxicity of a substance is most commonly reported as its concentration in water that results in the death of half of the exposed organisms within a given length of time and as a result it renders the environment uninhabitable to man, animals and plants. This research will therefore give/ provide an overview of oil spill issues in the oil and gas industry in Nigeria for key stakeholders in industry and government. It will also attempt to enlighten the host communities, managers in the industry, government and other stakeholders about their responsibilities in environmental management plan leading to the country having the best approach to environmental control in the oil and gas industry. 1.5 Research Scope The scope of this study will cover the operations in the oil and gas industry as it relates to environmental issues with particular focus on oil spill incidences and the effectiveness of the nation‘s environmental regulations in controlling the impact of these operations on the environment.