Petroleum, the Nigerian Environment and the Petroleum Industry Bill


By Uthman Akinbola
[15/04/13]
The petroleum industry is the backbone of the Nigerian economy, accounting for over 90% of Nigeria’s total foreign exchange revenue. Nigeria is about the seventh largest producer in the world and the largest in Africa. Current daily production of crude oil in Nigeria is over 2 million barrels. However, there is an environmental cost of this economic gain to the Nigerian state. There is always an environmental cost of oil and gas exploration to any oil producing nation!

The world has seen several environmental sustenance efforts driven by the United Nations (through UNEP). From the environmental protection focus of 1972 Stockholm Protocol to the ‘Sustainable Development’ drive of the 1987 Brundtland Report. It was then that sustainable development was said to be about intergenerational equity. We also had. the Rio Earth Conference i.e. ECO-92 Summit in Rio de Janeiro, where debates centred around “Environment and Development” (having Man as the focus of the issue). There was also the Kyoto Protocol of 1997, where reductions of pollutant emissions were proposed.

Just last year (2012) the Nigerian President Goodluck Jonathan attended the summit marking the 20 years of the Rio Earth Conference in Brazil. The focus was still sustainable environmental development.

However, Nigeria has not gained optimally from these efforts and also from the economic benefits derivable from petroleum. (The Gulf states are examples of economies that have gained immensely from the exploration of oil.)

Despite the overwhelming dependence on petroleum for man’s energy needs (and thus the massive exploitation of the oil resourse), over the last couple of decades world’s total reserves have actually gone up rather than down, as revealed in a paper in December, 2012 by Amama Mbabazi, the Ugandan Prime Minister. Also, we have read from several other reports that more oil and gas discoveries have been made on the African continent. This accounts for the increased presence of international economic and political power brokers in our own Gulf of Guinea, and hence offshore Nigeria.      

The August 2011 UNEP Environmental assessment report on Ogoni land (in Rivers State Nigeria – one of the OPAs) states:

Oil exploration and production projects may have impacts on the natural environment long before any oil is actually produced. These are complex, multi-faceted projects, with many different phases, including: land survey, land clearance for seismic lines, establishment of seismic and drilling camps, site preparation, infrastracture construction, drilling for oil (even when the effort is unsuccessful) and development of transportation infrastructure. Once a facility begins operating, others issues have to be dealt with, such as spills caused during oil production and the disposal of water (often salty and known as ‘produced water’) and flaring of gas (‘produced gas’) generated alongside the oil. All of these activities and their effects leave an environmental footprint.

Normally, the dillema of an oil producing state is ‘the exploration and production of oil for economic gains without upsetting the environment’. However, the situation of Nigeria is that this economic benefit ordinarily derivable from oil is frittered away, and no serious effort to protect the environment has been made. So the Nigerian state has no substantial economic gain to show for the environmental devastation from oil exploration. A case of double jeopardy. This is the first issue the Nigerian people must address.

The second issue is the roll-back of the already done damage to the environment. How do we institutionalise the restoration and regenration of the OPAs? How do we achieve the roll-back of the over four-decade long degradation that the OPAs air and water media, land and ecological biodiversity have witnessed? This is a challenge that we must confront.

Three main sources of hydrocarbon pollution in the oil producing areas are – oil spills; gas flares; and effluent and waste discharges. The major causes of the spill incidences include pipelines and flow lines leakage/blowouts, blowouts from well-heads and spills from flowstations. It also includes sabotage of oil facilities. Oil production involves the burning of hydrocarbon gases. The flaring of natural or associated gas is done as a by-product of the drilling of crude oil. Gas flares has negative impact on the local ecology and climate. One of the impacts, aside the raising of surrounding temperature, is light pollution, which subjects the living organism around the vicinity of the flare to 24-hour daylight. This destabilises diurnality and night-time patterns in animals.

The OPAs have experienced many major oil spills since production began in 1958 thereabouts. For instance.. The Niger Delta experienced two major oil spills, the Funiwa oil well blowout in 1980 and the Jones Creek oil spillage in 1998 that resulted in the greatest mangrove forest devastation ever recorded worldwide as stated in United Nations Development Program’s (UNDP) report on Nigeria in 2006.

The World Bank (2005) estimated that Nigeria flares about 75 per cent of the gas it produces due to the lack of a local market and infrastructure. This is an evidence of unsustainable production.

Another important issue is that about human development.

Generally, the communities from which oil is drilled often see the oil companies as vampires exploiting their resources, usually, to the point of exhaustion with little or no benefit to the people.

Addressing oil security and illegal bunkering is also important, for this erodes the revenue acruable to the FG. It also causes a lot of environmental damage. I donot believe that appealing to the international community to help us fight illegal oil bunkering will necessarily solve the problem.

There is no doubt that the oil and gas sector is very crucial in the industrial advances made by man and its importance is aptly described by Amama Mbabazi, the Prime minister of Uganda when he opined that: ‘Oil is a strategic resource that contributes to economic oportunity and energy security for the global market. Oil plays a dominant role in meeting the world’s energy needs, and this situation is expected to continue for decades to come. Even with the investments countries are making in renewable energy, energy efficiency and other measures to support a low-carbon economy, the International Energy Agency’s World Energy Outlook for 2009 still expects world oil demand to grow by one percent per year until 2030.’

He also asserted that ‘oil and gas are absolutely necessary to the world’s industrial economies. Together, they supply two-thirds of the world’s energy consumption. They also form the building blocks of over 30,000 different chemicals.’ This is why we have to take the oil industry with all seriousness and take maximum advantage of it for a robust national development.

Nonetheless, we must be mindful of the environmental impact of petroleum exploration, and strive to undo the mistake of the past, while embarking on measures to protect the environment against future degradation.

Way Forward
The Niger Delta Regional Master Plan is one important solution. The NDDC serving as Niger Delta Policy Council should address the Niger Delta policy issues and work to implement and ensure the success of the initiatives in 25, or so, areas covered in the Master Plan. Thus, many stakeholders must work together to achieve meaningful change. All levels of government and the NDDC, the oil companies, the organized private sector, civil society organizations and development agencies should form partnerships around the Master Plan for sustainable development and the attainment of the Millennium Development Goals (MDGs).

The United Nations Environment Program (UNEP) Environmental Assessment report on Ogoni land (August 2011) has recommended some solutions, and some of these are applicable to the entire oil producing areas.

It is pertinent that Nigerian government study the UNEP report and work to adapt the recommendations therein to the entire OPAs.

Some of the recommendations include:

Due to the wide extent of contamination in Ogoni land and nearby areas, and the varying degrees of degradation, there will not be one single clean-up technique appropriate for the entire area. A combination of approaches will therefore need to be considered, ranging from active intervention for cleaning the top soil and replanting mangrove to passive monitoring of natural regeneration. Practical action at the regulatory, operational and monitoring levels is also proposed.

Comprehensive review of existing Nigerian legislation on contaminated site clean-up considering recent international developments in regulation and incorporating community consultation to determine remediation closure levels, so that decisions on new legislation are seen as both transparent and inclusive.

A Centre of Excellence for Environmental Restoration should be established in Ogoni land to promote learning in other areas impacted by oil contamination, in the Niger Delta and elsewhere in the world. Offering a range of activities and services, the Centre could run training courses in environmental monitoring and restoration and ultimately become a model for environmental restoration, attracting international attention.

Another important solution is that the Federal Government should institutionalize a form of the Community Action for a Renewed Environment (CARE) programme operated in the United States. It is a competitive grant programme that offers an innovative way for a community to organize and take action to reduce toxic pollution in its local environment, such that the kind of relationship and arrangements that allow some supposed elders and leaders, and few privileged youths, benefit from special treatment at the expense of the majority in the Niger Delta would be obliterated. The ‘rugged’ individualism along and within ethnic lines in existence at present does not augur well for environmental sustenance. Through that programme any community within the Niger Delta creates a partnership that implements solutions to reduce releases of toxic pollutants and minimize people's exposure to them. This programme may even be adapted for the whole of Nigeria through the Federal Ministry of Environment. In any case, it helps communities tread the path to a renewed environment.

The Petroleum Industry Bill (PIB) may be a good step in the right direction. Thus, it should be seriously and sincerely addressed. National interest should override personal, regional and all other considerations. I believe that the focus or rallying point should be the maintenance of environmental fairness and justice for all. This the national assembly must take cognisance of in their deliberations towards achieving national development.

The issue of concentrating power or control of oil resource and licenses in the president’s hand through the minister of petroleum resources must be looked into. This is the same approach the Ugandan Oil Exploration Bill has taken and which is not good for the interest of the entire nation. We are aware of the self-styled dictator Museveni had turned himself into in Uganda, so one was not surprised that he pushed for such in the country’s oil bill. Is that the way we want to go?

It is better for a state to have such powers vested on government agencies and institutions rather than individual office holders, since agencies perform statutory functions often outside the direct supervision of the executive arm of government. This prevents subjecting the control of an important national resource like oil to the whims and caprices of one man or woman.

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