Assignment On NIGERIA ECONOMY AND THE PETROLEUM SECTOR

ASSIGNMENT ON
ECN 844 - (PETROLEUM SECTOR AND NIGERIAN ECONOMY)
NAME: STEPHEN, EMMANUEL NSE
REG NO: PG/WK/16/17/243990
TOPIC: GAS FLARING IS A MENACE WHICH HAS BROUGHT MULTIPLE

EFFECTS TO NIGERIANS. ITEMISE AND EXPLAIN THESE MULTIPLE
EFFECTS.
Gas flaring is the burning of natural gas that is associated with crude oil when it is
pumped up from the ground. In petroleum-producing areas where insufficient
investment was made in infrastructure to utilize natural gas, flaring is employed to
dispose of this associated gas. Also chemical factories, oil refineries, oil wells, rigs
and landfills, gaseous waste products and sometimes even non-waste gases
produced are routed to an elevated vertical chimney called a gas flare and burnt off
at its tip, this is called gas flaring. Gas flaring in oil rigs and wells contribute
significantly to greenhouse gases in our atmosphere.
Gas Flaring in Nigeria
Nigeria flares 17.2 billion m3 of natural gas per year in conjunction with the
exploration of crude oil in the Niger Delta. This high level of gas flaring is equal to
approximately one quarter of the current power consumption of the African continent.
Even though we have grown to be fairly dependent on oil and it has become the
center of current industrial development and economic activities, we rarely consider
how oil exploration and exploitation processes create environmental, health, and
social problems in local communities near oil producing fields.
The Nigerian government has not enforced environmental regulations effectively

because of the overlapping and conflicting jurisdiction of separate governmental
agencies governing petroleum and the environment as well as because of non-
transparent governance mechanisms. Neither the Federal Environmental Protection
Agency (FEPA) nor the Department of Petroleum Resources (DPR) has
implemented anti-flaring policies for natural gas waste from oil production, nor have
they monitored the emissions to ensure compliance. The Federal Environmental
Protection Agency (FEPA) has had the authority to issue standards for water, air and
land pollution and has had the authority to make regulations for oil industry.
However, in some cases their regulations conflict with the Department of Petroleum
Resources (DPR)s regulations started in 1991 for oil exploration.
From an economic perspective, the Nigerian governments main interest in the oil
industry is to maximize its monetary profits from oil production. Oil companies find it
more economically expedient to flare the natural gas and pay the insignificant fine
than to re-inject the gas back into the oil wells. Additionally, because there is an
insufficient energy market especially in rural areas, oil companies do not see an
economic incentive to collect the gas. From a social perspective, the oil-producing
communities have experienced severe marginalization and neglect. The environment
and human health have frequently been a secondary consideration for oil companies
and the Nigerian government. However, although there may be reasons for the
continuous gas flaring, there are many strong arguments suggesting that it should be
stopped.
As is the case in most oil producing regions of less developed countries, the
economic and political benefits are given significantly more weight by the
government than the resulting damage to the environment and human health.
THE DAMAGES/ EFFECTS OF GAS FLARING ARE ITEMISED BELOW:
Environmental Implications
Climate Change:
Gas flaring contributes to climate change, which has serious implications for both
Nigeria and the rest of the world. The burning of fossil fuel, mainly coal, oil and gas-
greenhouse gases-has led to warming up the world and is projected to get much,
much worse during the course of the 21st century according to the intergovernmental
panel on climate change (IPCC). This scientific body was set up in 1988 by the UN
and the World Meteorological Organization to consider climate change. Climate
change is particularly serious for developing countries, and Africa as a continent is
regarded as highly vulnerable with limited ability to adapt. Gas flaring contributes to
climate change by emission of carbon dioxide, the main greenhouse gas. Together
and crudely, these gases make up about 80% of global warming to date.
Acid Rain
Acid rains have been linked to the activities of gas flaring. Corrugated roofs in the
Delta region have been corroded by the composition of the rain that falls as a result
of flaring. The primary causes of acid rain are emissions of sulphur dioxide (SO2)
and nitrogen oxides (NO) which combine with atmospheric moisture to form sulfuric
acid and nitric acid respectively. Size and environmental philosophy in the industry
have very strong positive impact on the gas-flaring-related CO2 emission.
Pollution Effects
Drilling mud and oil sometimes find their way to the streams, surface waters and land
thus making them unfit for consumption nor habitable by man or animal. This
problem has been produced by a range of international oil companies which have
been in operation for over four decades. The economic and environmental
ramifications of this high level of gas flaring are serious because this process is a
significant waste of potential fuel which is simultaneously polluting water, air, and soil
in the Niger Delta.
Agriculture Implications.
The flares associated with gas flaring give rise to atmospheric contaminants. These
include oxides of Nitrogen, Carbon and Sulphur (NO2, CO2, CO, SO2), particulate
matter, hydrocarbons and ash, photochemical oxidants, and hydrogen sulphide
(H2S). These contaminants acidify the soil, hence depleting soil nutrient. Previous
studies have shown that the nutritional value of crops within such vicinity is reduced.
In some cases, there is no vegetation in the areas surrounding the flare due partly to
the tremendous heat that is produced and acid nature of soil pH.
The effects of the changes in temperature on crops included stunted growth,

scotched plants and such other effects as withered young crops . Reference
concluded that the soils of the study area are fast losing their fertility and capacity for
sustainable agriculture due to the acidification of the soils by the various pollutants
associated with gas flaring in the area.
Health Implications
Adverse Effects
The implication of gas flaring on human health are all related to the exposure of
those hazardous air pollutants emitted during incomplete combustion of gas flare.
These pollutants are associated with a variety of adverse health impacts, including
cancer, neurological, reproductive and developmental effects. Deformities in
children, lung damage and skin problems have also been reported .
Haematological Effects
Hydrocarbon compounds are known to cause some adverse changes in

hematological parameters. These changes affect blood and blood-forming cells
negatively. And could give rise to anemia (aplastic), pancytopenia and leukemia [8].
Economic Loss
Aside from the health and environmental consequences of gas flaring, the nation
also loses billions of dollars worth of gas which is literally burnt off daily in the
atmosphere. Much of this can be converted for domestic use and for electricity
generation. By so doing the level of electricity generation in the country could be
raised to meet national demand. Nigeria has recorded a huge revenue loss due to
gas flaring and oil spillage. Though more than 65 % of governmental revenue is from
oil, it is estimated that about $2.5 billion is lost annually through gas flaring in
government revenues.
Discussion and Conclusion
Gas is being increasingly seen as a viable source of energy to speed up

developmental needs in Africa. In Nigeria, while gas is wasted through the air,
creating harmful air pollutants, biomass is still the mainstay of cooking and other
heating. As a matter of fact, the natural gas currently flared in Nigeria can serve the
cooking needs of 320 million people not served by modern fuels.
Recommendations
These difficulties faced by local communities from gas flares are a sufficient
justification for ending gas flaring practice. Government should as a matter of
urgency, make stringent laws and take drastic action against defaulting companies
not just by payment of fines. Fines for defaulting companies should be so exorbitant
so as to deter them. Furthermore, the gas con be processed and produced into
cooking/domestic gas. Environmentalists and human right activists should continue
in their quest to end this act.
References
[1] JINN, Gas Flaring in Nigeria: an Overview, Justice in Nigeria Now. April 2010.
Available www.justiceinnigerianow.org.In article
[2] Ayoola, T. J,. Gas flaring and its implication for environmental accounting in
Nigeria, Journal of Sustainable Development. 4(5). 244-250. 2011.In article
[3] Anslem O. Ajugwo - Negative Effects of Gas Flaring: The Nigerian

Experience. (2013).Department of Haematology and Blood Transfusion, Madonna
University Elele, Nigeria. In Article.
[4] Medilinkz, Nigeria: Focus on the environmental impact of gas flaring, 2010.
Retrieved from: http://www.medilinkz.org/news/news2.asp?NewsID=294 [Accessed
on June5, 2010]. In article

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ASSIGNMENT ON

ECN 844 - (PETROLEUM SECTOR AND NIGERIAN ECONOMY)

NAME: STEPHEN, EMMANUEL NSE

REG NO: PG/WK/16/17/243990

TOPIC: GAS FLARING IS A MENACE WHICH HAS BROUGHT MULTIPLE

Gas Flaring in Nigeria

The Nigerian government has not enforced environmental regulations effectively

THE DAMAGES/ EFFECTS OF GAS FLARING ARE ITEMISED BELOW:

The effects of the changes in temperature on crops included stunted growth,

Hydrocarbon compounds are known to cause some adverse changes in

Gas is being increasingly seen as a viable source of energy to speed up

[3] Anslem O. Ajugwo - Negative Effects of Gas Flaring: The Nigerian

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