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Oil in Nigeria. By: Matthew Anaya, Banyar Zeya Bo, Melody Adelzadeh , Eric Armendariz , Amritpal Hundal , Yadira Cazares . Forming Oil. Comes from remains of plants and animals that died in ancient seas between 10-600 million years ago. Over years organism decayed in sedimentary layer.
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Oil in Nigeria By: Matthew Anaya, Banyar Zeya Bo, Melody Adelzadeh, Eric Armendariz, AmritpalHundal, Yadira Cazares
Forming Oil • Comes from remains of plants and animals that died in ancient seas between 10-600 million years ago. • Over years organism decayed in sedimentary layer. • No oxygen in layers so organism broke the remains into carbon rich compound that forms organic layer. • Organic material mixed with sediments forms the source rock. • As new sediment layer was deposited, it exerts heat and pressure over the source rock that translates organic material into crude oil and natural gas.
Locating the Oil • Geologists are responsible for finding the oil. • Task is to find the right condition for an oil trap. • Use variety of modern methods to find oil- • Sensitive gravity meter • Sensitive magnetometer • Sniffers • Seismology
Oil Drilling Preparation • Once site has been selected, oil companies need lease agreements to access the land before start drilling. • Before drilling- • Land must be cleared and leveled and access roads may be built. • There must be a water body near by, if no crew drills a water will. • Crew digs a reserve pit which is used to dispose rock cuttings and drilling mud during drilling process and lines it with plastic to protect the environment. Note: If the site is ecological sensitive, then the cuttings and mud must be disposed offsite that is trucked away instead of a pit.
Drilling Process • Once land is prepared, crew digs several holes to make way for the rig and the main hole. • A rectangular pit called cellar is dug around the location of actual drilling hole.
Drillingprocess Five basic steps to drilling the surface hole: • Place the drill bit, collar and drill pipe in the hole. • Attach the turntable, and begin drilling. • As drilling progresses, circulate mud through the pipe and out of the bit to float the rock cuttings out of the hole. • Add new sections of drill pipes as the hole gets deeper. • Remove the drill pipe, collar and bit when the pre-set depth is reached.
Testfor Oil • Once the pre set depth is reached, test done to confirm the findings include- • Well logging • Drill-stem testing • Core Samples Once they have confirmed the oil findings, oil is drilled out in a controlled manner.
Oilrefining • The oil that comes out of ground is crude oil. • Crude oil contains various chains of hydrocarbons. • Major classes of hydrocarbons in Crude oil are- • Paraffins • Aromatics • Napthenes
OilRefining • Crude oil has hundreds of different types of hydrocarbons mixed together. • Separated by Fractional Distillation. • Based on the principle that different hydrocarbon chains have different boiling point. E.g. petroleum gas boils at 104 F whereas gasoline boils at 401 F.
Effects of production process on people • Unemployment One effect of oil production in oil producing communities is the rise in unemployed youths where many have looked to oil companies in search for jobs but at the same time companies seem to favor non-Niger delta applicants in their recruitment exercises. • Employment alternatives With minimal employment opportunities the high levels of poverty in the Niger delta in the midst of great oil wealth has led to a large and growing proportion of the youth population seeing violence as a solution to their problems.
Status Social dislocations • The Land Use Act of 1979: With the enactment of the land use Act of 1979, all land belongs to the state. As a result, the act vested in the state control of all petroleum under or upon any lands. • Petroleum Act of 1969: Federal military takes control of oil The government can now unilaterally grant license to operate.
Distribution of wealth • Ethnic majority groups dominate federal government & control oil wealth The derivation principle which was one of the major building blocks of Nigeria’s federalism which maintained the revenue allocation formula that allowed the regions from which cash crops were derived to retain 50 percent of the revenue was ultimately deemphasized with the advent of oil as a major source of revenue in the late 1960s • Oil as national asset The Nigerian state and dominant social forces later pursued the oil as a national asset in order to devalue the derivation principle. To further reduce the percentage of oil revenue given to the oil producing communities.
Corruption • Oil fuels corruption The struggle for resource control also has a political dimension that has contributed to the violence in the Niger delta arising from the widespread feeling that its people have been severely neglected in the context of Nigerians unequal fiscal federation. • Corrupt political agendas After elections politicians did achieve limited results but they subjected the states resources to personal control and did not better the lot of their states citizens in increasing the standard of living. Rather political elites have been engaged in large-scale financial embezzlement and corruption scandals.
Militant Development • OilExporting Nigeria accounts for about 10 percent of US oil imports (the equivalent of about 40 percent of Nigeria’s oil exports), and the Nigeria delta has loomed large in the security interest of the USA, as it has for the EU and other major oil-importing nations such as china and India. The globalization of the Niger delta’s oil has gone side by side with its securitization in which global hegemonic forces see the oil as a vital globally needed resource whose continued uninterrupted flow along with the safety of (transnational) oil investments and oil workers must be protected at all cost, including military means. • Militancyin the Niger delta Militancy in the Niger delta has been troubling for the international community as a result of the regions rising strategic importance.
Transition from civil protest to militancy • Social movements Social movements agitating for greater resource control by the oil bearing communities also began to increasingly view government’s special initiatives and their institutional mechanisms as barriers between the people and their resources. • Resource war perspective This analysis increasingly refers to the transformation or evolution of grievance into greed. Although the resource war perspective contributes to the understanding of the multiple and complex motivations of insurgent groups, it still overlooks the historical and structural causes of violent conflict.
Transition from civil protest to militancy cont. • Resource control agenda/proliferation of youth organizations • Movement for the emancipation of the Niger Delta (MEND) Mend came about shortly after the 2005 national political reform conference (NPRC) failed to accept the recommendation of Niger delta delegates demand to receive appropriate revenue allocation. • Proliferation of youth organizations Many unemployed young persons are easily attracted to the militias rampaging across the region by the immediate prospects of highly rewarding employment in the violent underground economy.
Health of the inhabitants around production facilities Fence line Communities Are the areas where oil production takes place without regards to the hazards it creates to the people that live within the surrounding area. Oil companies have practiced paying no attention to cleaning up the region, or paying adequate compensation to degraded and polluted communities, or improving the safety standards of oil industry operations. In the 1980s the people then intensified their complaints about pipes that crisscrossed their communities and intermittently leaked into their farmlands and rivers, as well as the unquenchable gas flares that generate a lot of heat as well as toxic mist that contaminates all it touches.
Environmentaldislocation • Ecosystem damaged and polluted Prior to the discovery of petroleum in commercial quantities in 1956 and the commencement of it exportation in 1958, the Niger delta region had the most extensive lowland tropical and fresh forests, aquatic ecosystems and biodiversity in west Africa. • Effectsofpollution 1.5 million tons of oil has spilled into the Niger delta over the past 50 years, making the region one of the most polluted locations on earth. Oil leaks affect creeks, streams and related traditional sources of livelihood, eroding soil plots, and killing aqua life.
LaborConditions • Unsafe • Workers are preyed upon by gangs and militants who use kidnapping and violence to intimidate oil companies. • Casualization: industry-wide shift away from regular, full-time work towards forms of cheaper temporary labor and short-term contracting. • Work is often temporary, with uncertain wages, long hours and job security.
LaborConditions: Example "This job is very dangerous," he explains, asking to remain anonymous. "The smoke, the heat -- I cannot count the number of people who have died in explosions because they cannot escape the flames."
Labor Conditions: Unions 2 Main Labor Unions: 1. Nigerian Union of Petroleum and Natural Gas (NUPENG) One of the 29 industrial unions currently affiliated to the Nigeria Labor Congress. Vision: To enlarge its frontiers in the defense of members Trade Union Rights in the Oil and Gas Industry and the Nation in general. 2. Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Vision: To be the most organized and influential Trade Union in Nigeria by upholding the core values of our existence as a Union to ensure that our members and indeed, all stakeholders in the Oil and Gas Industry continue to promote a salubrious partnership in the industry.
Who is hiring these workers? • Shell Petroleum: largest and best known of the majors • ADDAX Petroleum • Chevron • ExxonMobil • All of the oil Majors have joint venture agreements with the state-run Nigerian National Petroleum Corporation(NNPC)
Are companies doing anything to better the conditions? Shell “We are working to keep our staff and contractors safe by focusing on compliance and tackling the cultural issues that can lead to unsafe behavior. In 2007 we made official our goal to operate with zero fatalities and no significant incidents.”
Health Effects associated with the consumption/contact of product • "I've worked on contaminated sites for more than 20 years and I've never seen anything on the scale that I saw in Nigeria. They're not just exposed – these people are actually living in petroleum." Donna Vorhees, an adjunct assistant professor of environmental health at BUSPH. • "After cupping my hand and smelling it, I almost knocked backward by the fumes, then I looked over to see a man calmly brushing his teeth with it.” • Water samples from that well later showed benzene levels of 9,000 micrograms per liter. The US drinking water standard is 5 mcg/l. • Local people, especially young ones, are accustomed to this standard
Health Effects associated with the consumption/contact of product: cont. • Recent U.N. report verifies that in quality of life, Nigeria rates below all other major oil nations • The World Bank categorizes Nigeria as a “fragile state” • Could take up to 30 years for regions to completely recover in damage from years of oil spills • Common method of soil remediation will work, but can lead to greater ground water contamination when rainfall.
Health Effects associated with the consumption/contact of product: Cont. Extensive oil deposits that enrich Nigeria has caused both benefits and major issues for its people. Black smoke is polluting the air. Streets are cratered with potholes and ruts. Mass garbage slums extend for miles. No electricity, no clean water, no medicine, no schools. Fish have been killed off due to decades of oil spills.
Environmental Consequences created from Oil Production Port Harcourt
Delta Geography • Ecological Zones: • • coastal barrier islands • • mangrove swamp forests • • freshwater swamps • • lowland rainforests • 7.5% of Nigeria's total land mass • Highest concentrations of biodiversity on the planet • It is the largest wetland • Maintains the third-largest drainage basin in Africa.
Global Alternative to Oil • Solar Energy • Wind Energy • Water Energy
Global Alternative to Oil • Compressed natural gas • Liquid petroleum gas • Fuel cells • Hydrogen Technology
Global Alternative to Oil • Biodiesel from used cooking oil • Biodiesel from Soybean oil • Recovered Methanol • Glycerin (Global Alternative Fuel, LLC) • Biodiesel from plastic waste (Syngas) • Bloom Energy from Sand (Bloom energy)
