PIPELINE TRANSPORTATION AND ITS SIGNIFICANCE TO THE MARKETING OF PETROLEUM PRODUCTS IN NIGERIA

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PIPELINE TRANSPORTATION AND ITS SIGNIFICANCE TO THE MARKETING OF PETROLEUM PRODUCTS IN SOUTH EAST, NIGERIA

INTRODUCTION

Nigeria is blessed with abundant natural resources of which petroleum products play a major role. At present, Nigeria is the ninth world producer and sixth world exporter of crude oil. On the domestic economy, the petroleum sector generates over 90% of the country’s foreign exchange earnings, and provides employment in various forms to Nigerians (Central Bank of Nigeria Annual Report and Statement of Accounts, 2010). In addition, the tremendous growth in oil earnings has influenced significantly Nigeria’s international relations, and sometimes the politics of oil has taken centre stage in the nation’s history of international relations in the last few decades.

Eromosele (1997) observed that after almost half a century of oil exploration in Nigeria, the oil industry is earning a mature status in comparison to other industries in the country such that significant progress has been made in terms of oil exploration and sale of crud oil abroad. Unfortunately, the domestic management of petroleum resources is fraught with a number of problems. There are occasional product shortages, inefficient product distribution and contending pump price of petrol. These problems are compounded by ethnic and civil disturbances
in the Nigeria-Delta oil producing areas. This situation sometimes leads to destruction and vandalization of oil pipelines, disturbances in operation of the oil explorations and damage to life and properties

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