OIL EXPLORATION AND SUSTAINABLE DEVELOPMENT IN SELECTED LOCAL GOVERNMENT AREAS OF RIVERS STATE

OIL EXPLORATION AND SUSTAINABLE DEVELOPMENT IN SELECTED LOCAL GOVERNMENT AREAS OF RIVERS STATE

ABSTRACT: This study analyzed the extent of oil exploration that had impacted seriously on the sustainable level and development of five selected LGAs of Rivers State. The data used in the analysis were purely sourced from the field specifically within Obio-Akpor, Eleme, Tai, Gokana, and Khana local government areas. Firstly the Likert scale of measurement was used for the preliminary analysis before the data were subjected to Chi-Square to check the effect of oil exploration on sustainable development in the chosen area. The inputted result from the Chi-Square showed that oil exploration in Rivers state significantly caused economic and social development in the state and secondly oil exploration in Rivers state hurts the natural or physical environment. That is, it degenerates the natural or physical environment. From the summary of our findings, we, therefore, outlined the following as our policy recommendations: government needs from time to time monitor the total oil revenue effect on the economy through evaluating the GDP, income per head, employment rate, infrastructural provision, etc. to understand the wellbeing of the society and secondly the negative relationship between oil exploration activities and environmental deterioration call for an urgent review of the environmental Policies and Laws of Nigeria.

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OIL EXPLORATION AND SUSTAINABLE DEVELOPMENT 

CHAPTER ONE

• Background of the Study

Due to the current trend in oil exploration and sustainable development, there is a need to evaluate the effect of oil exploration in development, particularly on sustainability. This concern is purely based on the realization of the role of energy intake in the growth and development of societies or nations. Without a doubt, the oil sector is very crucial to the survival of our nation’s budget or simply the Nigerian budget for about five decades. Exploration and production of oil have substantially improved the entire system since its inception in 1908. For the past five to six decades, the oil sector or petroleum products have been the most foreign exchange earning means of revenues in Nigeria and have also been responsible for boosting of Nigeria’s GDP.

Even with the huge success witnessed over the years from the oil revenue and enormous volume sold daily, Nigeria is still characterized by high indices of the underdeveloped economy particularly those states in the oil zone are still underlined with inequality, impoverished class groups, abysmal level of social vices, etc. Nigeria still lies bottom in the comparative analysis of the human development index. According to the world development index 2017, about eighty-one percent of Nigerians live below the poverty line, the infant mortality ratio is at an alarming stage while income per capita is extremely low.

The financial benefits derived from oil output have been seen to be like mirages among Nigerians, especially the appropriation of benefits that have been totally inadequate or unevenly inequitable. Most of the people in the oil-producing zone (Niger-Delta) are experiencing a subhuman life. This is predicated on the fact that they are minorities and powerless in the arrangement and ruling oligarchy in Nigerian.

The agencies and companies in the business of oil and gas have continued to provide regulations and action that will provide and enhance sustainability in the system in as much as oil explorations and productions are attached with much priority. From the analysis of the global report initiative (GRI, 2015), this considered sector is assigned to undertake and oversee the following activities: exploration, extraction, production, refining, sale, and transportation of oil and also gas petrochemicals while oil services firms are mandated to act following the listed policies; environmental protection (use and disposition of water and water-related chemical), chemical, safety, health, climate protection and transformation of energy market also, meeting with growing energy demands.

Development, if it should be matched with the target of sustainability then it must be economically, environmentally, and socially feasible. Economic sustainability entails developmental goals that incorporate both GDP increase, per capita growth, and a conscious effort to minimize the harmful effects of economic activities on the natural resources base. The 2015 United Nations development goals on sustainability (SDGs) emphasized more on the sustainability of the economy of every society through reduction of poverty, hunger, bad life, and unhealthy environment/ wellbeing, justices, and peace through well strong refined institutions, the decline in inequality and proactive management of the environmental system. We seek to examine the position of oil exploration on sustainable development following the United Nations Development Programme using Rivers state as our case study.

• Statement of the Problem

Despite the huge amounts realized from oil revenue daily, the Nigerian economy remains underdeveloped more considerably the Niger delta Zone. The region that produces the so emphasized oil is undergoing high-pressured challenges about or through socio-political crises, economic meltdown, and environmental issues.

Environmental issues like oil spillage as postulated by Awobaji, (1981) occur almost daily and the effect on the environment is alarming and disturbing. Oil spillage caused the water to be damaged as well as vegetations and agricultural lands are affected. Cleansing of oil spills is not most time done properly as expected from the initial arrangement; in most cases, the remaining crude oil is set on fire in which case forests and rivers are set ablaze. The severe problems associated with oil spill have exposed several people to sudden death, hardship, homelessness, and affected the water bodies, land, and air space. This has resulted in deforestation through the encroachment of forestland fallow period reduction. The anger felt by the affected communities have increased the protest carried out by these groups.

• Aim and Objectives

This research examines the relationship between oil exploration and sustainable development in five selected oil producing Local Government Areas in Rivers State.

The specific objectives are:

1. To examine the effect of oil exploration on the economic development of the five selected Local Government Areas in Rivers State.
2. Investigate the contributions of the oil sector on the social development of the five selected local government areas in Rivers State;
3. Examine the effect of oil exploration on the environment of the five selected local government areas in Rivers State.

• Research Questions

This research work seeks to give answers to the following questions:

1. How does oil exploration affect economic development in the five selected Local Government Areas of Rivers State?
2. What is the level of contributions made by this sector towards social development in the five selected Local Government Areas of Rivers State?
3. What is the impact of oil exploration on the natural environment of the five selected Local Government Areas of Rivers State?

• Research Hypotheses

The following research hypotheses are formulated in null form

1. H₀: Oil exploration does not impact economic development in the five selected Local Government Areas of Rivers State
2. H₀: Oil exploration has no significant relationship with social development in the five selected Local Government Areas of Rivers State.
3. H₀: Oil exploration does not impact the environment of the five selected Local Government Areas of Rivers State.

• Scope of the Study

To make this analysis suitable and presentable, we focused on oil exploration and sustainable development in Rivers State particularly in Obio-Akpor, Eleme, Tai, Khana, and Gokana local government areas. The essence of choosing those five local government areas is purely traced on their endowment in crude oil and other natural resources. This study will not leave behind the effect to which oil exploration and its activities cause to their physical environments like rivers, land, and air through oil spills.

• Significance of the Study

The conclusion and recommendations that are listed in the closing chapter of this analysis will assist policymakers in drafting and designing appropriate and desired policies, in maintaining and reviewing the already in use policies to embrace the sustainability as one of the economic goals. Through this analysis, both households and firms will stand in a better position to evaluate the relationship between considered studies of interest to the economy. Furthermore, our findings will be of relevance to researchers who wish to carry out a further study in this area of interest

• Organization of the Study

To follow the scientific procedure of a proper research method, we analyzed this study in five different but supportive chapters. The first chapter incorporates the introduction, statement, aim and objectives, research questions and hypotheses, scope, significance, and organization of the entire analysis. The second part of the analysis revealed the relevant literature included in the work. Chapter three looks at the method adopted in data gathering and analysis. In chapter four results and data, presentations were carried out. Chapter five is purely preoccupied with summary, conclusion, and policy recommendati.ons.