upstream and downstream in the nigerian economy
INTRODUCTION: The natural resources of any nation, particularly the minerals, often constitute the lion share of the nation 's wealth. It is known that oil and gas sector is driving sector of any oil producing country’s economy; this is particularly true of the OPEC nations including Nigeria. The oil and gas Industry is divided into three major sectors namely the upstream, midstream and downstream. Nigeria has an abundance of oil and gas resources to justify subsidized and, in fact, low energy prices but unfortunately, current oil and gas production per capita is relatively very low which implies that Nigeria cannot currently afford to maintain low energy prices for its citizens.
Upstream Activities
The upstream activity is the search for potential underground crude oil or underwater crude oil and natural gas fields, drilling of exploratory wells and subsequent drilling including the operating of the wells that recover and bring the crude oil or raw natural gas to the surface. With the development of methods for extracting methane from coal seams, there has been a significant shift toward including unconventional gas as a part of the upstream sector, and corresponding developments in liquefied natural gas (LNG) processing. The West Atlantic Energy Nigeria Limited (WAEL) is an example of an upstream company. The upstream oil industry is the single most important sector in the country 's economy, providing over 90% of its total exports.
Oil is produced from five of Nigeria’s seven sedimentary basins: the Niger Delta, Anambra, Benue Trough, Chad, and Benin. The Niger Delta, the Onshore and Shallow Offshore basins can be considered fairly well to well explored. Ventures here are low risk and the basins contain about 80% of producing wells drilled in Nigeria. During the later 1990s exploration focus turned to high risk ventures in the frontier basins of the deep water offshore with encouraging success. These ventures are becoming increasingly
Upstream Activities
The upstream activity is the search for potential underground crude oil or underwater crude oil and natural gas fields, drilling of exploratory wells and subsequent drilling including the operating of the wells that recover and bring the crude oil or raw natural gas to the surface. With the development of methods for extracting methane from coal seams, there has been a significant shift toward including unconventional gas as a part of the upstream sector, and corresponding developments in liquefied natural gas (LNG) processing. The West Atlantic Energy Nigeria Limited (WAEL) is an example of an upstream company. The upstream oil industry is the single most important sector in the country 's economy, providing over 90% of its total exports.
Oil is produced from five of Nigeria’s seven sedimentary basins: the Niger Delta, Anambra, Benue Trough, Chad, and Benin. The Niger Delta, the Onshore and Shallow Offshore basins can be considered fairly well to well explored. Ventures here are low risk and the basins contain about 80% of producing wells drilled in Nigeria. During the later 1990s exploration focus turned to high risk ventures in the frontier basins of the deep water offshore with encouraging success. These ventures are becoming increasingly
References: Reis, J.C., U.(1993).An Overview of the Environmental Issues Facing the Upstream Petroleum Industry ISBN 978-1-55563-481-0.texas prints. Oil For Nothing: Multinational Corporations, Environmental Destruction, Death and Impunity in the Niger Delta Essential Action, 2000. Retrieved june 2013. oil Spill Response And Remediation.http://dexcomsolutions.com. retrieved 06,2013.http://www.dexcomsolutions.com/services.html (2013).A way forward for the Nigerian oil, Gas and power sectors. http://businessdayonline.com. retrieved 13,06,2013. from http://www.businessdayonline.com/NG/index.php/analysis/columnists/50010-a-way-forward-for-the-nigerian-oilgas-and-power-sectors-1- (2013).Oil and Gas in Nigeria.http://mbendi.com. retrieved 06,2013. from http://www.mbendi.com/indy/oilg/af/ng/p0005.htm (2012).upstream(petroleum industry).http://en.wikipedia.org. retrieved 06,2013.from http://en.wikipedia.org/wiki/Upstream_%28petroleum_industry%29