ABSTRACT
The objective of this study to access based
on questionnaire the exceptional quality or other wise of the present economic
effect of petroleum scarcity.
Information was drawn from both primary
and secondary source. The primary source include information were questionnaire
raised to check petroleum users on the scarcity in Enugu
state Nigeria.
During that time , question on the general field of economic effect of
petroleum scarcity in Enugu state Nigeria
and on the caused of the current scarcity of fuel were asked through
questionnaires.
Information was equally drawn on past
works on related topics, and news papers that affect the scarcity especially as
it concerns transport and other users that make use of fuel in their business.
The rest of information come from private users. This information collection
was analysis using presentation of result , distribution of petroleum by
states.
The study also
revealed the economic effect of petroleum scarcity in Enugu
state Nigeria
.
TABLE OF CONTENT
Title page
I
Approval page
ii
Dedication iii
Acknowledgement
iv
Abstract
v
Table of content
vi
CHAPTER ONE
1.0
Introduction
1.1 statement of problem
1.2
Purpose of study
1.3
Significance
of the study
1.4
Scope of study
1.5
Limitation of the study
1.6
Formulation of terms
1.7
Definition of terms
CHAPTER TWO
2.0
Review of related literature
2.1 Origin of petroleum product
scarcity
2.2
Cause of petroleum product scarcity
2.3
Smuggling of petroleum product
CHAPTER THREE
3. 0 Research methodology design
3.1
Instrument for data collection
Primary
data
Secondary
data
3.2
Determination of sample size
3.3
Method used for data analysis
CHAPTER FOUR
4.0 Data presentation and data
analysis
4.1 Presentation of data
4.2 Analysis of data
4.3 Test of hypotheses
CHAPTER FIVE
5.0 Summary of findings, conclusion and
recommendation
5.1 Findings
5.2 Conclusion
5.3 Recommendation
Bibliography
Appendix
Questionnaire
CHAPTER ONE
INTRODUCTION
Oil exploration in Nigeria could be traced back to 1908 when a
German company [Nigerian bitumen corporation started chilling of cretaceous
sands of Niger Delta. Shell Darchy , the pioneer oil
exploration and producing company was incorporated and granted concession right to prospect for oil in 1936.production
and export of crude oil took effect in 1959 at a rate of 5100 barrels per day.
The success of shell spurred many other
multinational oil company to join in the scumble for Nigeria crude oil. Among these were
MOBIL, NIGERIA AGIP OL COMPANY , NIGERIA GULF OIL COMPANY SATRAP [ NOW
ELF].others are TEXACO,PAN OCEAN, PHILP OIL ESSO AAND ASHLAND.
Major activities of these oil companies
are centered in Delta , Rivers , Cross
Rivers , and Imo state .
These include the off shore and on shore locations. Some of the on shore fields which
produce most Nigeria
crude oil are located at Bonu, Obigbo north , and east , elenwa ,umuechem, in
rivers state , oguta and izombe in Imo state . off shore are located in aqua-
Ibom in cross rivers rennington , forcados and escravos in Delta state.
The Nigeria economy can largely be
described as one with a strong petroleum industry superimposed over an
underdeveloped industrial base. Presently Nigeria is growing into a more
economic country by depending Marjory on oil revenue. The dominance of oil in
the Nigeria
economy because a reality after the resumption of oil production at the end of
the civil war, [1967-1970] it virtually because predominant after the fuel
price increase of 1973 /74. Most recently is the one about to struck the nation
now , take from Daily Champion News Paper. Monday march 17, 2003, “fuel price like :NLC threatens showdown with FG†was the capital. I wounded were we are
leading to, I wounded if the federal government understands that the comfort of
new citizen is the price of a government revenue of about 90% of the federal
government revenue.
Fuel
scarcity that struck the nation in recent times appears to be continuing
without end. Disturbing as the picture might be the situation on the ground
shows that a petroleum endowed nation which is one world’s major producers and
a member of the organization of petroleum exporting countries [OPEC] with a
daily quota of 1.865 million barrels and also one whose four vetira have
combined production of 445,000 barrels per day is in the throes of a domestic
oil shortage. Petroleum scarcity is usually characterized by the emergency of
long queue of vehicle queue for about four days to obtain fuel at exorbitant
price. Taking a critical view of this problem one would discover that ‘there is
a long list of players from the supply of petroleum product through the
refineries to the end users. Some of the participant in this chain of
distribution have acquired the role of middlemen adults. Mr Chamberlin oyibo , the managing director of the Nigeria
National Petroleum Corporation [NNPC].
These middlemen operate from a sewing
lack of control. The cause of petroleum scarcity could be trace to a complex
process where many people and actions contribute, from crude oil through
refining to the PPMC [pipeline and product market company ] the tanker drivers
and owners. Independent marketers , retailers and consumers all collectively
contribute knowingly or unknowingly to petroleum scarcity by their acts of
omission or commission.
This ugly development in which roadside
peddlers have abundance of petrol while the filling stations are empty also
cries for critical attention
1.1 STATEMENT
OF PROBLEM
This
research work is motivated by an interest in finding a solution to the unending
fuel scarcity in our filling stations. This fear of petroleum scarcity ought not to exist in our oil producing
country with massive investment in four petroleum refineries [Wari, Port Harcourt , kaduna
, and Elema]. It is puzzling and tragic that the country’s major source of
income has become the harbinger of incoherence to the citizens.
However
the problem is to find out the extent to
which fuel shortage has affected the entire economy. What are the option left
for the government in solving the problems left?. How has it affected the
common man in the street.
In
view of these complexities government needs to consider with utmost urgency.
Other arrangement for managing it’s oil sector efficiency as a catalyst for
national development rather than a source for easy money and personal interest.
It is quite obvious from what we see day to day about the random rise of fuel
price. If I may say the problem is highly affecting the massive in their
economic life’s.
The
essence of good government is the interest of the masses which fuel scarcity
has turned up-side down .
1.2 PURPOSE OF THE STUDY
The
purpose of this study is to -:
A.
Find the root cause of fuel scarcity
B.
To analysis critically the effect of oil scarcity in
our economy.
C.
To offer meaning suggestion as to find a lasting
solution.
The need for this study emanated as a
result of a persistent fuel scarcity in
the nation. This work will no doubt cover the smuggling of petroleum products ,
problems of our four major refineries do not produce up to full capacity. It
will indeed look into the major effects on the growth of the economy.
Finally this work will create the awareness
and give insight of actual picture of
fuel scarcity and the associated danger it will create if not checked .
1.3 SIGNIFICANCE
OF THE STUDY
This
study will check -:
A.
Effects of fuel scarcity in transportation
B.
Unemployment
C.
Agriculture
D.
Oil revenue
Recently
the [NLC] National Labour Congress threatens show down with the federal
government over fuel price like, [daily champion march 17] the fuel scarcity
has gone a long way affecting every expect of our economy.
Talk
about transportation a part of economic sector has increase that many people as
usual , some resort to walking to the office which will take a long time and
will affect their ability to work. The problem of fuel scarcity is practical.
Fuel
scarcity has as well created unemployment when there is acure , scarcity , must
energy source industries would close down , thereby throwing a lot of workers
to the unemployment market. This will also affect the road transport workers
and their drivers ,which eventually led to serious disorder. Demand for oil is
a derived demand. Motor spirit for example is demanded chiefly for the service
it renders in the engine. Because of the importance of oil in our economic
life. It’s shortage has brought untold hardship and powerful effect on labour
force.
An economy
in cries of low capacity utilization might lay off workers and in the long run
increase unemployment.
Agriculture
which is one of the most vital requirement for existence of man was adversely
affected by the scarcity of petrol products. Production is not complete until
it gets to the final consumer. During the period of scarcity farmer found it
hard to covered their farm product to market which resulted to a large loss as
most of adequate preservative method and lack of warehouse , this development
was not unconnected with the exorbitant cost of transportation which emanated
from the scarcity of fuel .
Oil revenue the federal government lost about 150million
dollars [about #3.3million] from oil export during the NUPENG/PENGASSON strike
in July and August 1994. This show that petroleum scarcity has really done much
to our economy. This shortage still happens almost every time there is fuel
shortage of strike. It is no gainsaying that oil is the main stay of Nigeria
economy hence an acute shortage is bound
to ground the economy. As a result there has been a considerable fall on the
accruing to Nigeria
which will definitely lead o budget deficit. Project stated for completion may
not get government support since the government would be battling it’s
balance of payment deficit.
1.4
SCOPE OF THE STUDY
There are some indispensable constraints
that affect research works. Most importantly is the non availability of
financial resource to be used in traveling to the head quarter of major oil
companies like chevron , shell BP and
Golf oil all situated in Lagos. Much as the study is not aimed at
discrediting any individual or group or any constituted authority. Most people
in possession of relevant information find it difficult to release them
suspecting that to do so would lead to their being believed of their post.
1.5
LIMITATION OF THE STUDY
To enquire information from NNPC is like
chasing a white elephant. It was made clear that feels and figures about oil were
guarded secret. The study is limited to news papers , past literature , test
books and questionnaire from filling station managers , where we get practical
facts.
1.6
FORMATION OF HYPOTHESIS
To asses whether the strategy for attaining
each of the indicant of performance was well implemented , two hypothesis are
stated for testing these are-:Ho: petroleum scarcity has no effect in the
economic
H1: : petroleum scarcity
has effect in the economic development.
1.7
DEFINITION OF TERMS
Petroleum –
is mineral oil which originated from forest I prehistoric time found
underground and obtained from wells , used in various forms.
Scarce – is
not available in sufficient quantity not to the demand .
Effect – is
a degree or extent result , outcome of the heat upon metals.
Economics – is a science of the production
distribution and consumption of gods condition of a country as to material
prosperity.
Unemployment
– is the state of being unemployed.
Resources –
is the wealth, supplies of goods, raw materials, which a person, country or
state has or can use.
Agriculture
– is the science or practice of farming, cultivation of man to the soil.
Get the Complete Project Material Now!!!
