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ENERGY SUPPLY OPTIONS PROSPECTS FOR OIL AN GAS DEVELOPMENT IN NIGERIA
ENERGY SUPPLY OPTIONS PROSPECTS FOR OIL AN GAS DEVELOPMENT IN NIGERIA
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ABSTRACT
CHAPTER ONE
INTRODUCTION
- Background of the study
Energy is the bedrock of infrastructural and socioeconomic development of any country whether developed or developing nation. Sustainable development is a process that evolved with the trend, circuiting investment, orientating technology and institution for compatible with the needs of the present and the future. Electricity is conceivably the most multipurpose energy carrier in modern global economy, and therefore primarily linked to human and economic development. Globally, the quest for sustainable development has heightened today more than ever before. There are increasing awareness and concern for sustained economic development and growth. Sustainable energy has turned into one of the most promising ways to handle the challenges of energy demand problems of numerous consumers worldwide. Sustainable Energy Development Strategies typically involve three major technological changes: energy savings on the demand side, efficiency improvements in the energy production, and replacement of fossil fuels by various sources of renewable energy. Consequently, large-scale renewable energy implementation plans must include strategies for integrating renewable sources in coherent energy systems influenced by energy savings and efficiency measures. The importance of energy in the economic, social and political development of every nation cannot be overemphasized. Transportation, industrial activities, communication, health, and education are some of the areas where energy cannot be substituted. Improvement in standard of living is manifested in rise in food production, increased industrial output, the provision of efficient transportation and telecommunication, adequate shelter, improved healthcare delivery and other human services; each of these requires increased energy consumption. Thus, future energy requirement is expected to grow with increase in standard of living, industrialization and other socio-economic factors. However, inadequate supply of energy restricts socio-economic activities, constrains economic growth and adversely affects the quality of life. Energy is a critical input for the achievement of many of the Millennium Development Goals, including eradicating extreme poverty and hunger, achieving universal primary education, promoting gender equality and empowering women, reducing child mortality, improving maternal health, combating diseases, and ensuring environmental sustainability.
For adults and children, gaining access to reliable electricity enhances their quality of life and enables income-generation. Modern cooking and heating solutions can transform the lives of billions—many of whom spend hours collecting and transporting firewood and other forms of biomass, and all of whom are exposed to household air pollution from solid fuels, which killed an estimated 3.5 million and caused many more cases of respiratory, cardiovascular, and other illnesses in 2010 [5] . Beyond household access, electricity is a critical input to the effective delivery of social services, which help lift populations out of poverty and enable economic growth. Lighting, refrigeration, and effective sterilization procedures enabled by electricity supply make healthcare far more effective, and electricity similarly improves education by enabling superior lighting and powering of computers and other equipment. For Nigeria to meet up with the Vision 20:2020; Nigeria requires power generating capacity of 140,000 MW as against the current capacity of about 8039 MW [6] . This will put Nigeria slightly below South Africa with per capita power capacity of 1047 W, UK with per capita power capacity of 1266 W and above Brazil with per capita power capacity of 480 W, China with per capita power capacity of 260 W [7] . Currently Nigeria has per capita power capacity of 28.57 W and this is grossly inadequate even for domestic consumption. To the much desired millennium development goals a strong energy sector is essential for a vibrant and competitive economy.
The National energy supply is at present almost entirely dependent on fossil fuels and firewood (conventional energy sources) which are depleting fast. Despite the abundance of energy resources in Nigeria, the country is in short supply of electrical power. Access to reliable and stable supply of electricity is a major challenge for both the urban and rural dwellers. Only about 40% of the nation’s over 140 million has access to grid electricity and at the rural level, where over 70% of the population live, the availability of electricity drops to 15% [8] . An analysis of Nigeria’s electricity supply problems and prospects found that the electricity demand in Nigeria far outstrips the supply, which is epileptic in nature. The acute electricity supply hinders the country’s development and not only restricts socio-economic activities to basic human needs; it adversely affects quality of life. Nigeria’s unreliability of supply and decline in traditional fossil fuel production, combined with very grave environmental matters and continued uncharted economic and population growth makes it imperative to search for alternative forms of energy. Whilst proceed with increasing the generation capacity, transmission and distribution of existing traditional energy sources through the development of energy systems and policies that enhance social, economic and environmental performance; it is appropriate to focus on alternative to the traditional energy sources which among other things is capital intensive, and the technology required becomes obsolete with a short space of time thereby requiring intensive overhauling of the machineries or better still a complete replacement of the existing technology with a newer innovation leading to colossal waste of fund. However, the answer to the present imbroglio may be found in renewable and sustainable energy forms both for rural and urban areas of the country.
- STATEMENT OF THE PROBLEM
The energy basket in Nigeria has played a significant role in generating income for the economy. However, the need to priorities the primary function of using the endowed resources is emphasized. The management of the resources has created a dysfunction in the economy, resulting into grim energy security concerns, which makes it imperative for thetransformation of the sector from being a leakage to a strategic source of energy security. It is in view of this epileptic power supply that the researcher intend to investigate energy supply options prospect for oil and gas development in Nigeria.
- OBJECTIVE OF THE STUDY
The main objective of this study is to ascertain the impact of energy supply options prospect for oil and gas development in Nigeria. But for the completion of the study, the researcher intends to achieve the following sub-objective;
- To investigate the energy supply options for oil and gas development in Nigeria
- To ascertain the role of government in improving energy supply in the oil and gas sector
- To ascertain the relationship between energy options and oil and gas development in Nigeria.
- To proffer solution to the identified problems
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- RESEARCH HYPOTHESES
For the successful completion of the study, the following research hypotheses are formulated by the researcher;
H0:there is no energy supply options prospectfor oil and gas development in Nigeria
H1:there is energy supply options prospect for oil and gas development in Nigeria.
H0:the government does not have any role in improving energy supply in the oil and gas sector
H2:the government have a significant role in improving energy supply in the oil and gas sector
- SIGNIFICANCE OF THE STUDY
It is believed that at the completion the study, the findings will be of great important to the management of the oil and gas sector in sourcing for alternative source of energy supply options. The study will also be useful to the government agency and parastatal and the ministry of power, as the study seek to explore alternative source of energy supply for the nation at large. The study will also be useful to researchers who intend to embark on research in similar topic,Finally the findings of this study will also be immense benefit to government, academia, scholars, researchers and the general public.
- SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers energy supply options prospect for oil and gas development in Nigeria. But in the cause of the study, there are some constrain which limited the scope of the study;
- a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study.
- b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
- c) FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover
1.7 DEFINITION OF TERMS
Energy
Energy can exist in a variety of forms, such as electrical, mechanical, chemical, thermal, or nuclear, and can be transformed from one form to another. It is measured by the amount of work done, usually in joules or watts. See also conservation of energy, kinetic energy, potentialenergy. Compare power, work.
Oil and gas
The American Petroleum Institute divides the petroleum industry into five sectors: upstream (exploration, development and production of crude oil or natural gas) downstream (oil tankers, refiners, retailers and consumers)
Petroleum industry
The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing of petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, synthetic fragrances, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category
1.8ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, objectives of the study, research questions, research hypotheses, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter. Chapter three is a research methodology covers deals on the research design and methods adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.
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1 comment
Nice topic