The objective of this study to access
based on questionnaire the exceptional quality or other wise of the present
economic effect of petroleum scarcity.
Information was drawn from both primary
and secondary source. The primary source include information were questionnaire
raised to check petroleum users on the scarcity in Enugu
During that time , question on the general field of economic effect of
petroleum scarcity in Enugu state Nigeria and on
the caused of the current scarcity of fuel were asked through questionnaires. Information
was equally drawn on past works on related topics, and news papers that affect
the scarcity especially as it concerns transport and other users that make use
of fuel in their business. The rest of information come from private users.
This information collection was analysis using presentation of result ,
distribution of petroleum by states. The study also revealed the economic
effect of petroleum scarcity in Enugu state Nigeria .
TABLE OF CONTENTS
1.1 statement of problem
Purpose of study
of the study
Scope of study
Limitation of the study
Formulation of terms
Definition of terms
Review of related literature
2.1 Origin of petroleum product
Cause of petroleum product scarcity
Smuggling of petroleum product
3. 0 Research methodology design
Instrument for data collection
Determination of sample size
Method used for data analysis
4.0 Data presentation and data
4.1 Presentation of data
4.2 Analysis of data
4.3 Test of hypotheses
5.0 Summary of findings, conclusion and
Oil exploration in Nigeria could be traced back to 1908 when a
German company [Nigerian bitumen corporation started chilling of cretaceous
sands of Niger Delta. Shell Darchy , the pioneer oil
exploration and producing company was incorporated and granted concession right to prospect for oil in 1936.production
and export of crude oil took effect in 1959 at a rate of 5100 barrels per day.
The success of shell spurred many other
multinational oil company to join in the scumble for Nigeria crude oil. Among these were
MOBIL, NIGERIA AGIP OL COMPANY , NIGERIA GULF OIL COMPANY SATRAP [ NOW
ELF].others are TEXACO,PAN OCEAN, PHILP OIL ESSO AAND ASHLAND.
Major activities of these oil companies are
centered in Delta , Rivers , Cross
Rivers , and Imo state .
These include the off shore and on shore locations. Some of the on shore fields which
produce most Nigeria
crude oil are located at Bonu, Obigbo north , and east , elenwa ,umuechem, in
rivers state , oguta and izombe in Imo state . off shore are located in aqua-
Ibom in cross rivers rennington , forcados and escravos in Delta state.
The Nigeria economy can largely be
described as one with a strong petroleum industry superimposed over an
underdeveloped industrial base. Presently Nigeria is growing into a more
economic country by depending Marjory on oil revenue. The dominance of oil in
economy because a reality after the resumption of oil production at the end of
the civil war, [1967-1970] it virtually because predominant after the fuel
price increase of 1973 /74. Most recently is the one about to struck the nation
now , take from Daily Champion News Paper. Monday march 17, 2003, “fuel price like :NLC threatens showdown with FG” was the capital. I wounded were we are
leading to, I wounded if the federal government understands that the comfort of
new citizen is the price of a government revenue of about 90% of the federal
Fuel scarcity that struck the nation in
recent times appears to be continuing without end. Disturbing as the picture
might be the situation on the ground shows that a petroleum endowed nation
which is one world’s major producers and a member of the organization of
petroleum exporting countries [OPEC] with a daily quota of 1.865 million
barrels and also one whose four vetira have combined production of 445,000
barrels per day is in the throes of a domestic oil shortage. Petroleum scarcity
is usually characterized by the emergency of long queue of vehicle queue for
about four days to obtain fuel at exorbitant price. Taking a critical view of
this problem one would discover that ‘there is a long list of players from the
supply of petroleum product through the refineries to the end users. Some of
the participant in this chain of distribution have acquired the role of
middlemen adults. Mr Chamberlin oyibo ,
the managing director of the Nigeria National Petroleum Corporation [NNPC].
These middlemen operate from a sewing
lack of control. The cause of petroleum scarcity could be trace to a complex
process where many people and actions contribute, from crude oil through
refining to the PPMC [pipeline and product market company ] the tanker drivers
and owners. Independent marketers , retailers and consumers all collectively
contribute knowingly or unknowingly to petroleum scarcity by their acts of
omission or commission.
This ugly development in which roadside
peddlers have abundance of petrol while the filling stations are empty also
cries for critical attention
This research work is motivated by an
interest in finding a solution to the unending fuel scarcity in our filling
stations. This fear of petroleum scarcity
ought not to exist in our oil producing country with massive investment
in four petroleum refineries [Wari, Port Harcourt
, kaduna , and
Elema]. It is puzzling and tragic that the country’s major source of income has
become the harbinger of incoherence to the citizens.
the problem is to find out the extent to
which fuel shortage has affected the entire economy. What are the option left
for the government in solving the problems left?. How has it affected the
common man in the street.
view of these complexities government needs to consider with utmost urgency.
Other arrangement for managing it’s oil sector efficiency as a catalyst for
national development rather than a source for easy money and personal interest.
It is quite obvious from what we see day to day about the random rise of fuel
price. If I may say the problem is highly affecting the massive in their
essence of good government is the interest of the masses which fuel scarcity
has turned up-side down .
1.2 PURPOSE OF THE STUDY
purpose of this study is to -:
Find the root cause of fuel scarcity
To analysis critically the effect of oil scarcity in
To offer meaning suggestion as to find a lasting
The need for this study emanated as a
result of a persistent fuel scarcity in
the nation. This work will no doubt cover the smuggling of petroleum products ,
problems of our four major refineries do not produce up to full capacity. It
will indeed look into the major effects on the growth of the economy.
Finally this work will create the
awareness and give insight of actual
picture of fuel scarcity and the associated danger it will create if not
OF THE STUDY
study will check -:
Effects of fuel scarcity in transportation
the [NLC] National Labour Congress threatens show down with the federal
government over fuel price like, [daily champion march 17] the fuel scarcity
has gone a long way affecting every expect of our economy.
about transportation a part of economic sector has increase that many people as
usual , some resort to walking to the office which will take a long time and
will affect their ability to work. The problem of fuel scarcity is practical.
scarcity has as well created unemployment when there is acure , scarcity , must
energy source industries would close down , thereby throwing a lot of workers
to the unemployment market. This will also affect the road transport workers
and their drivers ,which eventually led to serious disorder. Demand for oil is
a derived demand. Motor spirit for example is demanded chiefly for the service
it renders in the engine. Because of the importance of oil in our economic
life. It’s shortage has brought untold hardship and powerful effect on labour
in cries of low capacity utilization might lay off workers and in the long run
which is one of the most vital requirement for existence of man was adversely
affected by the scarcity of petrol products. Production is not complete until
it gets to the final consumer. During the period of scarcity farmer found it
hard to covered their farm product to market which resulted to a large loss as
most of adequate preservative method and lack of warehouse , this development
was not unconnected with the exorbitant cost of transportation which emanated
from the scarcity of fuel .
Oil revenue the federal government lost about 150million
dollars [about #3.3million] from oil export during the NUPENG/PENGASSON strike
in July and August 1994. This show that petroleum scarcity has really done much
to our economy. This shortage still happens almost every time there is fuel
shortage of strike. It is no gainsaying that oil is the main stay of Nigeria
economy hence an acute shortage is bound
to ground the economy. As a result there has been a considerable fall on the
accruing to Nigeria
which will definitely lead o budget deficit. Project stated for completion may
not get government support since the government would be battling it’s balance of payment deficit.
SCOPE OF THE STUDY
There are some indispensable constraints
that affect research works. Most importantly is the non availability of
financial resource to be used in traveling to the head quarter of major oil
companies like chevron , shell BP and
Golf oil all situated in Lagos. Much as the study is not aimed at
discrediting any individual or group or any constituted authority. Most people
in possession of relevant information find it difficult to release them suspecting
that to do so would lead to their being believed of their post.
LIMITATION OF THE STUDY
To enquire information from NNPC is like
chasing a white elephant. It was made clear that feels and figures about oil
were guarded secret. The study is limited to news papers , past literature ,
test books and questionnaire from filling station managers , where we get
FORMATION OF HYPOTHESIS
To asses whether the strategy for attaining
each of the indicant of performance was well implemented , two hypothesis are
stated for testing these are-:Ho: petroleum scarcity has no effect in the
H1: : petroleum scarcity
has effect in the economic development.
DEFINITION OF TERMS
is mineral oil which originated from forest I prehistoric time found
underground and obtained from wells , used in various forms.
Scarce – is
not available in sufficient quantity not to the demand .
Effect – is
a degree or extent result , outcome of the heat upon metals.
Economics – is a science of the production
distribution and consumption of gods condition of a country as to material
– is the state of being unemployed.
is the wealth, supplies of goods, raw materials, which a person, country or
state has or can use.
– is the science or practice of farming, cultivation of man to the soil.