The Impediments to Nigeria Understanding Oil Production Volumes, Losses and Potential Solutions

Abstract

The issue of the quantity of oil produced or missing has traditionally been played down in Nigeria. This is evident as no one in or outside Nigeria is able to quote a totally reliable production volume or loss figure. The aim of this study is thus to search for the root causes as to why there are difficulties in ascertaining the quantity of crude oil produced or missing per day and for potential solutions. The research assesses the present situation and problems requiring solution concerning Nigerian oil and gas measurement control. This is achieved through an intensive review of each of the notified bodies responsible for Nigeria’s oil and gas measurement control, using secondary resources. The bodies reviewed in this study are the Department of Petroleum Resources and the Weights and Measures Department. The study has identified knowledge impediments among the designated bodies. Also discovered were inadequate measurement equipment and absence of measurement guidelines, thus, no mechanisms were in place to address any mismeasurements or losses that are discovered. Provision of comprehensive training to the regulatory body to provide it with the necessary “teeth” to ensure effective delivery of it regulatory function has therefore been recommended as the key solution.

Keywords: Nigeria, Oil and Gas, Measurement, Regulation, Training