THE ESTIMATE OF IMERI BITUMEN DEPOSIT (A CASE STUDY OF IMERI, OGUN STATE, NIGERIA)

 THE ESTIMATE OF IMERI BITUMEN DEPOSIT (A CASE STUDY OF IMERI, OGUN STATE, NIGERIA)

CHAPTER ONE

1.0       INTRODUCTION

The Petroleum industry has become the mainstay of the overall economy of Nigeria, accounting for about 90 per cent of the country’s foreign exchange earrings, about 20 per cent of the Gross Domestic Product, and about 85 per cent of the Federal Government collectable revenue. The demand for this back gold is fast increasing worldwide. Figure 1.1, from Purvin & Gertz’ most recent Global Petroleum Market Outlook study, shows how petroleum product demand has grown since 1995 and how it is expected to continue to grow through 2015. The study shows a 1.7 % per annum growth in worldwide demand and that this growth rate will continue over the next 15 years. The Purvin & Gertz study also states that the growth in crude supplies from 60 million barrels per day in 1990 to 75 million barrels in 2005 will continue up to 95 million barrels per day in 2020. The current growth in transportation fuel demand is outpacing the supply of traditional crude oil sources.

This gap can be filled through increased production of non-traditional hydrocarbon deposits, such as Canadian oil sands, Venezuelan heavy oils. It is apparent that increasing amounts of petroleum will come from nonconventional sources. Hence the need for the development of our heavy crude deposits. Therefore, in order to ensure continuity and orderly development of the industry, the Federal Government put in place a Petroleum Policy. Prominent among the objectives of the Policy is the development of the large deposit of tar sands in the country.

The extensive geological studies carried out largely by the staff of the University of Ife (now Obafemi Awolowo University) IIe Ife, confirmed the existence of the natural bitumen in Western Nigeria in commercial quantities. Similarly, the limited engineering studies of the naturally occurring bitumen in the Okitipupa area of Ondo State. Also, reference to various reports, newspaper publications and other information media in Nigeria within the last two decades is a pointer to the fact that petroleum crude, generally a major source of bitumen, has been aptly described as Nigeria’s “black gold”. But can this “black gold” concept of petroleum crude oil be extended to bitumen? Perhaps the second phase of Nigeria’s economic breakthrough is round the corner!

It is in the light of the foregoing that the title of this research work has been chosen to read: “the reserve estimate of Bitumen deposit in Imeri, Southwestern Nigeria?” to find out if the natural bitumen can be mined in commercial quantity as a nonconventional petroleum to support Nigeria’ s economic sector .

At the end of this project, we hope to be able to find solution to some pertinent questions like:

1)   What is the meaning of bitumen?

2)    What is its reserve estimate of bitumen in the study area?

3)    What is its economic viability?

 THE ESTIMATE OF IMERI BITUMEN DEPOSIT (A CASE STUDY OF IMERI, OGUN STATE, NIGERIA)