ASSESSMENT OF THE SOCIO-ECONOMIC EFFECT OF CRUDE OIL EXPLOITATION IN UGHELLI AND WARRI

 ASSESSMENT OF THE SOCIO-ECONOMIC EFFECT OF CRUDE OIL EXPLOITATION IN UGHELLI AND WARRI

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1     Introduction

Petroleum is among the various resources produced by nature. They are used by human to satisfy their needs such as transportation, cooking, electricity power supply and others (Mike, 2012). The exploitation of natural resources such as crude oil is the use of natural resources for economic growth, of sometimes with a negative connotation of accompanying environmental degradation (Cronin, 2009). It started to emerge on an industrial scale in the 19^th century as the extraction and processing of raw materials (such as in mining, steam power, and machinery) developed much further than it had in pre-industrial eras. During the 20^th century, energy consumption rapidly increased.

In the last fifty-five (55) years, the Niger-delta region has experienced increased activities in the area of oil exploration and exploitation, refining and products marketing operations while the same activities have generated immense finance for the country as a whole, it has created health and environmental problems to the host communities in the Niger Delta Region. According to Omajemite (2008), the operation of the oil industries have introduced pollutants such as liquid discharge and oil spills into the air, land and water component of the environment. This oil activities though contributed to the Nigerian economy, notwithstanding the area has been subjected to series of degradation and the member of the host communities suffering untold hardship. The whole process of obtaining fuel mineral, from exploration, extraction processing and transportation as well as storage and consumption generate one form of pollution or the other. For example, during exploration, drill cutting, drilling mud and fluids are used for stimulating of crude oil, damage to pipeline and accident involving road trucks and tankers generate oil and hydrocarbon emission. These have a far more reaching effect on the environment (FEPA, 2001). The entire process of oil extraction negatively affects the environment basically through pollution which invariably leads to other kinds of problem stated the crude oil is so dangerous that when the oil touches the leaf of food crops or whatever economic tree in the area, the plants dries off immediately. This destructive effect of oil exploitation on plants invariable leads to poor agricultural yield in the region.

 ASSESSMENT OF THE SOCIO-ECONOMIC EFFECT OF CRUDE OIL EXPLOITATION IN UGHELLI AND WARRI