| In the late 1950s the British discovered oil in Nigeria. | | | | This may cost Nigeria millions of dollars each day in |
| Since then petroleum production has become the | | | | lost revenue. |
| biggest industry in Nigeria and a primary contributor | | | | Most of the country's petroleum reserves are located |
| to the country's gross domestic product. The Nigerian | | | | in the area known as the Niger Delta. This is the area |
| oil industry has however been plagued by political and | | | | that surrounds the Niger river where it forms a delta |
| economic instability. Corrupt military regimes and | | | | before entering the Gulf of Guinea. There are also |
| environmental damage has had a negative impact | | | | offshore oil reserves that are slowly being extracted |
| upon Nigeria in general. | | | | by oil rigs. |
| Nigerian oil reserves are estimated to be | | | | You might be forgiven for thinking that the general |
| approximately 19.5 billion barrels. Some sources | | | | population of Nigeria shares in the wealth that is |
| believe there are even more petroleum than that in | | | | generated by oil exports. Sadly, this is not the case. |
| reserve. In 2001 Nigeria oil production was around 2 | | | | In fact, the opposite is true. Due to widespread |
| million barrels per day. Nigeria has about 159 oil fields | | | | corruption in the government the vast oil wealth is |
| in operation. | | | | shared between only the top 1% of Nigeria's |
| Offshore oil drilling has also started to increase and | | | | population. The other 99% of the population has not |
| there is still a lot of potential for growth in this | | | | shared in the wealth created by Nigerian oil revenue. |
| sector. Offshore oil drilling has a few advantages | | | | Protests by the general population over social and |
| over onshore drilling such as fewer restrictions, fewer | | | | economic disrepair are usually answered with the use |
| raids by local militants and less chance of sabotage. | | | | of excessive force by the Nigerian government and |
| Oil exploration and production is almost completely a | | | | military. |
| joint venture partnership between foreign oil | | | | Numerous oil spills has already caused environmental |
| companies and the Nigerian government. Local | | | | damage to the Niger Delta. This includes the pollution |
| independent companies account for only a very small | | | | of water supplies and the destruction of rain forest |
| amount of petroleum production. Here are some of | | | | as well as mangrove forest. Oil spills may occur due |
| the foreign oil companies that are operating in Nigeria: | | | | to the corrosion of pipelines, insufficient inspection |
| Agip, Chevron, Exxon-Mobil, Royal Dutch Shell and | | | | and repair routines or sabotage. |
| Total. | | | | Nigerian oil is still being extracted even though there |
| Nigeria also has reserves of natural gas. | | | | are unsolved environmental and human rights abuse |
| Unfortunately, most of the natural gas that is | | | | issues connected to it. |
| uncovered during crude oil extraction is burned off. | | | | |