Assessing the Challenges and Opportunities in the Oil and Gas Industry

Abstract

It is a huge paradox, a curious irony so difficult to swallow, not to mention digesting, that Nigeria as the world’s 6th largest oil producer can barely meet its local needs of fuel supply. This strange phenomenon begets a litany of wild and unhelpful ramifications on the nation’s economy. Talk of capital flight, talk of poor value addition to our physical resources, think about scandalous fuel subsidy outlay among others.This paper is an overview of operations in the oil and gas industry vis-à-vis these challenges, seeks to highlight the opportunities available, and the need to pursue an aggressive developmental strategy in this sector.While the world is now focusing on natural gas as a viable alternative to crude oil, there is gross, dismal under-utilisation of same and outright wastage via flaring, in Nigeria. It is also a clarion call on stakeholders to make this all-important sector an optimal, intangible wealth creator.

DOI: 10.5901/ajis.2013.v2n12p129