OIL PRODUCTION AND ENERGY CONSUMPTION: IS OPEC A BLESSING OR IMPEDIMENT TO THE NIGERIAN OIL AND GAS INDUSTRY?

Abstract

The impact of oil in Nigeria could either be a blessing or impediment as this can be seen as two sides of a coin because of the blessings of oil industry to the economy of Nigeria, it has assisted in increased export and revenue generation which has been used for developmental purposes while impediments cannot be ruled out as a result of neglects in the developments of other sectors of the economy like Agriculture, manufacturing and sea mining. Nigeria is one of the Top 12 oil producers as of 2001 and Nigeria occupies the 8th position concerning crude oil reserves, thanks to OPEC objectives. The role played by OPEC in regulating production, export and reserve had been a blessing rather than curse to Nigeria oil industry. Currently, there is a shift towards alternative energy sources, future technological projection, environmental awareness, and the sources of our energy are coming under closer scrutiny and this has led to the rise of many alternative energy sources because of lower emissions, lower fuel prices and the reduction of pollution are all advantages that the use of alternative fuels can often provide and this is a paradigm shift and an impediment to oil production and revenue from it as well as danger to future oil production as conflicts and pandemic had contributed to the threat, similarly, failure on the part of Nigerian government to institutionally support diversification of other sectors is the real impediment, not our membership of OPEC and these are the issues this article intends to discuss so as to explore diversification of other sectors for meaningful contribution to the country’s economy. The method adopted is doctrinal; the approach is analytical and comparative while the purpose is both descriptive and normative.