The First Commercial Discovery And Operation Of Oil And Gas Essay

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The first commercial discovery and operation of oil and gas in Nigeria commenced effectively in 1956. Since then, the Nigerian economy has over time become largely dependent on petroleum. Petroleum accounts for about one-third of the country’s Gross Domestic Product (GDP), 76% of government revenue, and 95% of the foreign exchange earnings. Nigeria is the 11th largest crude oil producer in the world, and the largest crude oil producer in Africa contributing about 3% of the global crude oil production . Nigeria is also the 9th country in terms of gas reserves in the world, having the largest gas reserves in Africa, contributing about 8% of the global liquefied natural gas supply . Despite these impressive figures, 70% of Nigeria’s domestic product demands are met through importation. This cost the country around $62 billion in 2014 which was higher than what the country received (averagely around $56 billion) from crude oil exports in the same year. As at 2014, Nigeria imported 886 million barrels of petroleum products, making it the 13th largest petroleum importer in the world. For each barrel of petrol imported, Nigerian government paid at least $8 per barrel, which tallied the total fuel subsidy payment to about $7 billion in 2014 .

Being blessed with such an enviable natural resource; “black gold” as it is often referred to, one would think this resource would be well managed to improve the wellbeing and development of Nigerian citizens and also put the country at par

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