Employing existing literature on economic analysis, this work seeks to determine the viability or otherwise of investing in the nation’s refining capacity preliminary research indicates the steady rise in imported petroleum products will persist until the domestic refining capacity meets the domestic consumption level. Bp (formerly british petroleum) is one of the world’s largest oil and energy companies, which provides fuel, energy and petrochemical products they have been in existence since the early 1900’s and have gone through a number of changes. Petroleum and petroleum products, chemicals, vehicles, aircraft parts, this is a chart of trend of gross domestic product of nigeria at market prices estimated nigeria's foreign economic relations revolve around its role in supplying the world economy with oil and natural gas,. Addax petroleum has driven its growth in nigeria by acquiring oil properties deemed by others to have limited, remaining production potential and using its strong in-house technical and operational expertise to grow reserves and production in a cost effective manner. Of the differences in end-user prices the price differences are significant: a recent price survey showed that the retail prices of four petroleum products in 65 developing countries in january 2012 varied by two orders of magnitude, with the lowest prices found predictably mostly in major net oil exporting countries (kojima 2012.
Nigeria's proven oil reserves are estimated to be 35 billion barrels (56 × 10 9 m 3) natural gas reserves are well over 100 trillion cubic feet (2,800 km 3) nigeria is a member of the organization of petroleum exporting countries (opec. Lingering economic down turn is enough reason to cause price instability of oil products in nigeria the author opined that trailing oil products prices down to crude oil prices has revealed that the instability in the prices of oil products was due to cost of refining, storing, transporting distributing and inefficiencies in the process. Abstract it is well documented in the literature that there exists a positive relationship between oil price and inflation in this study, we found that the price of premium motor spirit (pms) remained stable until the entry of the military into the administration of the country when the then military heads of state arbitrarily increased the prices of petroleum products. Economics 561 april 17, 2012 this was mainly caused due to hindrances such as conflicts in the middle east and the production strikes in nigeria as a result this affected the price of crude oil and it rose substantially petroleum products are usually grouped into three categories: light distillates (lpg, gasoline,.
Transportation and storage in the oil and gas industry pertains to the movement of crude oil from the oil fields (where oil has been discovered) to petroleum refineries (where the oil is further processed) to storage areas, where the petroleum products are stored for distribution and emergency reserves. Sample economics essay benefits of deregulation of downstream oil and gas economics essay table of content they also posit that nigeria has the lowest price of petroleum products in the world and with deregulation the international market equilibrium would allow government to channel funds to other sectors of the economy furthermore. Involvement of the indigenous petroleum products marketers in the economic development process of nigeria, it is interesting that in 1981, they accounted for less than half – percent in terms of volume of petroleum products marketed in nigeria by 1998, they had captured about 25 percent of the market today, they.
This essay will discuss the monopoly of petroleum by the organization of petroleum exporting countries (opec), particularly how it controls the price of petrol, threats to its monopoly and the social costs involved. The price of crude oil is affected by the demand and the supply like any other good in times of bottlenecks the price is expected to rise whereas when there is an oversupply of crude oil the price tends to fall crude oil prices have varied over the last 50 years. This study “problems of petroleum products distribution in nigeria” is basically aimed at finding the cause of incessant shortage of petrol in enugu to find out whether the storage facilitates, provided at the depot and by the oil marketing companies are not enough to ensure steady supply. In chapter 3, crude oil refining and petroleum products economics is examined and chapter 4 looks at the implications of both crude oil refining and importation vis - à – vis the economy the chapter 5 concludes the paper with few suggestions as to what the best economic option should be in meeting the petroleum products demand in nigeria 2.
The oil products that i will be taking into consideration in this assessment are: gasoline, diesel fuel, jet fuel, kerosene, liquefied petroleum gas, and fuel oils this list represents refined oil products, not crude oil. The data on the consumption of petroleum products were sourced from the central bank of nigeria statistical bulletin (2006) edition while the pump prices of petroleum products were sourced from nigerian national petroleum company (nnpc) the data from the two sources better captures the reality about petroleum consumption and its prices in. Supply and demand analysis on petroleum products and crude oils for asia and the world 1 overview of the study 11 objectives petroleum demand in the asia-pacific countries keeps on growing, particularly in china with its significant economic development and in india where a demographic factor is also at work as a result.
The impact of surging oil prices on the us economy although the lingering effects of the great recession of 2007-2009 continue to dissipate and economic growth resumes, volatile global oil prices remain a source of concern for economists and consumers alike. Keywords: distribution, price, petroleum products, south east nigeria introduction the south east region of nigeria is made up of five states namely anambra, abia, ebonyi, enugu and imo. Economic implications of petroleum policies in nigeria: an overview onyemaechi joseph onwe, phd school of management sciences national open university of nigeria 14/16 ahmadu bello way victoria island lagos nigeria abstract the nigerian petroleum industry has been having major transformations since the discovery of crude oil in nigeria in 1956. Past, present, & future of petroleum petroleum has played an important role in the social, economic, and political history of the united states and the world.