Economics of Petroleum Exploitation and Exploration Impact on Selected Communities in Niger Delta Region of Nigeria

Abstract

The study evaluated the economics of the petroleum exploitation and exploration impact on selected communities in Nigeria’s Niger Delta region Nigeria. The following tools of analysis was used in achieving the specific objectives: Descriptive statistics, and Economic Analysis. The mean value of crude oil produce COP was 8.09E+08 bbl (809165023.053), the average revenue generated from crude oil production over the period was $22,835,108USD. The average volume of gas flared was 462,230.5 m³ and the average revenue lost as the result of gas flaring was $254703.6USD the average volume of gas produced was 590.7150 m³ The average revenue generated from sales of crude oil was $22, 835,108 USD, the maximum revenue generated was $46,523,843 USD. The average revenue generated from the sales of gas was $1,160,779 USD, the maximum and minimum revenue was $46523843 USD and $8029000 respectively. The average revenue lost as a result of oil spillage over the period was $748.4895 USD with maximum and minimum value of $3330.90 USD and $24.60000 USD. Table 4.2 also revealed that the average revenue lost as the result of gas flared over the specified period if it were properly harnessed was $254703 USD, the maximum and minimum value of revenue lost was $628332.0 USD and $118337.0 USD.

Keywords: Economics, Petroleum, Exploitation, Revenue, Gas Flaring, Nigeria

DOI: 10.7176/JESD/12-18-01

Publication date:September 30^th 2021