Crude oil is basically an unrefined petroleum product, this is a natural resource that consists of hydrocarbon deposits and organic components. Crude oil is a type of fossil fuel that produces diesel, gasoline, and other petrochemicals when refined.
Crude oil was discovered in 1875 by David Beaty in his home located in Warren Pennsylvania. After this, he opened his oil company known as the Bradford oil field which produced over 77% in the 1880s of global oil supply.
Crude oil is very important because you can produce several others. When processed it serves as transportation fill in form of jet fuel, diesel, and gasoline. Crude oil comprises of sulfur oxygen and nitrogen.
Most people get confused that is the question if crude oil and petroleum are in the same. It is crucial for you to know that crude oil is a non-renewable resource.
Additional petroleum products from crude oil;
Asphalt, lubricating oil waxes jet fuel, gasoline, and heating oil. Crude oil is a very important asset to a country and it’s a valued commodity all over the world.
The opening session of petroleum exporting countries determines the price per barrel of crude oil in the market. Do you think the huge oil reserves by OPEC members they overshadow other non-OPEC countries? The organization of petroleum exporting countries has oil reserves almost 2000 billion barrels.
However, these are countries with the biggest oil reserves in the world and guess what? Nigeria is there.
- Canada -oil reserves: 173.105
- Iran. – oil reserves: 154.58
- Iraq. – oil reserves: 141.35.
- Kuwait. – oil reserves: 104.
- United Arab Emirates – oil reserves: 97.8.
- Russia – oil reserves: 80.
- Libya – oil reserves: 48.01.
- Nigeria- oil reserves: 37.2.
Companies came to Nigeria to drill and produce Nigeria’s crude oil. These foreign multinationals became very rich to date with the richest of them being Shell petroleum company.
Shell tops as Nigerians richest or your company got the net worth of $388 8.4 billion US dollars in revenue. This is astonishing because she controls up to 50% of Nigeria’s or your production that is 899,000 barrels from over 80 oil fields per day.
This liquid fuel source that can be found underground that is extracted through mining and drilling can also be used for the production of plastics.
Composition of crude oil
Crude oil is made up of hydrocarbon which is between 50% – 97%, you know also has nitrogen sulfur and oxygen which is between 6 and 10%. You’ll also contain nickel, vanadium copper and iron which are metals that are below 1%.
Crude oil is also known for fossil fuel because of how it came to be. According to science crude oil was formed after 400 million years from plankton and prehistoric algae remain.
Due to the processing up heat and pressure that it goes through before forming, crude oil became a non-renewable resource.
Nigeria has a mono-economy and solely depends on what major source of revenue which is crude oil. The production and export of crude oil keep increasing by the years. Nigeria as producers hires 2475 barrels per day.
Petroleum is the major source of Nigeria’s foreign exchange I need to contribute to at least 20% of employment in the country. Part of what made Nigeria giant of Africa is the richness in crude oil.
There is a need for diversification of the economy that may be focusing more on the agricultural product would also be helpful as the trend in the whole world is driving towards a carbon-free environment which means less use of a vehicle that makes uses of petroleum products.
Over these States rank as the best oil-producing States in Nigeria.
- Akwa Ibom
It is crucial to establish that the major supplier of crude oil to Europe is Nigeria. Meaning of soothing fifth-largest supplier of oil to the US. Back in June 2004, Nigeria has made up to 9.3% of the oil imports of the United States of America by supplying up to 1.2 million barrels per day. This is the show you the magnitude of Nigeria’s prowess.
Where was oil first discovered in Nigeria?
There are many oil-producing States in Nigeria that I have already listed. However, I’ll disclose the answer to you.
Oil was first discovered in Bayelsa state in the year 1901 in Oloibiri community to be specific.
Shell D’Arcy discovered the oil in that community. that was the first commercial oil Discovery after 50 years of unsuccessful exploration of oil in Nigeria by several international companies.
However, the industrial development and commercial production of the oil later started in 1956.
Nigeria drilled its first oil well in 1958.
After which Nigeria makes oil export to different countries like Brazil which takes 9.7%, South Korea also takes 9.7%, India takes 9.9% why Spain takes 11%, the country that tops the list where Nigeria makes its major export market is Japan with 32% of the oil export.
Crude oil popularly known as Black gold has been mined non-stop in southern Nigeria especially Delta of river Niger.
Just that the list says Nigeria belongs to the top 10 largest oil producers but this didn’t stop us from being among the poorest countries in the world. With all the money Nigerian makes from oil production, Nigeria still being categorized as a third world country where the citizens live below the poverty line and can’t afford $1 per day.
Nigeria is rich but has a major problem and according to Chinua Achebe, it is leadership. mismanagement of public funds and embezzlement is the order of the day as each government that takes the position of power tend to loot and take their share of the National cake.
Nigerian leaders lack vision and this is detrimental to the development of the Nation. Countries like Singapore Philippine and Dubai which way behind us back in the days are now head of Us.
The lack of vision by our leaders is very evident especially when the oil boom occurred. Nigeria had excess money and spent it carelessly without investing for a better tomorrow also helped some African countries especially South Africa they were fighting apartheid at that time.
Nigeria’s past military leaders also contributed to the embezzlement of funds which to date are being returned by foreign banks and countries.