Background and Context
Nigeria is the largest producer of petroleum in Africa and the 6th largest sweet crude oil producer among OPEC member nations. According to the study of Babatunde (2014), in the Niger Delta region, conservational deprivation is considered as the fundamental issue facing the oil-bearing zones. Niger Delta region is intensely populated along with the disastrous challenges for the livelihood of local traditional people and their pursuit for developing sustainability. When it comes to the environmental conflicts and development of the Niger Delta, oil-bearing regions have faced countless issues related to the environment that are connected with pollution from the removal of derivatives like drilling fluids in production, cutting drills, injection of chemicals, and more.
Instead of various eras of recurrent spills and connected harm to the Niger Delta environment, the Nigerian government was unsuccessful in holding oil companies responsible for wanton obliteration of the natural deposit. Furthermore, on this, the public has thrived and been contingent for a longer period (Agbonifo, 2016).
The study of Duru (2010) highlighted that the Niger Delta region involves oil-production areas and other related motives of development objectives, radical expedience and administrative convenience, spreads the land range to 75 thousand sq. km. It has been summarised in this study that the politics of oil states additional profound national limitations and tasks in the Niger Delta region with that the state of Nigerian can struggle, most particularly, problems of fiscal federalism, resources allocation, minority rights, and poverty mitigation. The study also highlighted that the modest beginning in this way is for the government and oil organisations for making life additional manageable in these communities of oil-bearing.
According to Igwe (2020), since 2009, the oil-bearing Nigeria delta region was able to be broken easily. It might soon be damaged if Nigeria’s government processes for discontinuing the Program of Presidential Amnesty. It has been studied from this research study that the backbone of the Nigerian economy was constant since the discovery of oil happened in commercial measures in Oloibiri, Bayelsa State in 1956. This has a huge contribution to the economy.
The study of Paki and Ebienfa (2011) shows that oil is the support of the economy of Nigerian and disruption in the production of oil and gas has reduced the national revenue of Nigeria. The reduction of national revenue involves the withdrawal of foreign capital, organisation and emigrant staff, problems in transportation, and small reductions in the anticipated supply of electricity. The Niger Delta region has suffered from unsophisticated endemic poverty and environmental degradation.
This study aims to examine the effects of internal conflicts on crude oil production. For making this study specific, the researcher will explore the case of the Niger Delta crisis in order to examine the oil crisis in the Niger Delta in Nigeria. Moreover, the study will focus on the history of oil exploration as well. Along with this, how the government has ended the crisis of the Niger Delta and what was their actions.
- To examine the effects of internal conflicts on The Crude Oil Production
- To discuss the beginning of the Niger Delta crisis in terms of oil production
- To recognise the outcome of the oil crisis in the Niger Delta region of Nigeria
The researcher has made a specific research question that has to be addressed to resolve the research concern:
Environmental Challenges and Deprivation in Niger Delta
Question. What is the effect of internal conflict on crude oil production?
It has been found that the people of the Niger Delta region have suffered various years of marginalism and inattention from the investigation of oil and product distribution by government and multinational oil organisations. This has a huge amount of effect on the oil workers and oil installation sites (Adesote and Peters, 2015).
It has been examined from the study of Babatunde (2012) that several people think that Nigeria has a probable aspect of becoming a worldwide powerhouse of Africa and could be overcome various troubles and problems which is currently the development of Nigeria. In addition, Nigeria produces 2.7% of the world’s oil and it contributes 75% of revenue to Nigeria itself. But the oil calamity in the Nigeria Delta region had affected the oil investigation and reduced the revenue which was increasing due to the sales of oil. Therefore, the researcher has chosen this particular research matter in order to examine the effect of internal conflict on crude oil production while using the particular case of the Nigeria Delta crisis. Moreover, the study will focus on the history of oil exploration as well (Igwe, 2020). Along with this, how the government has ended the crisis of the Niger Delta and what was their actions.
This chapter is focusing on involving various literature that is related to the research topic which is the effects of internal conflict on crude oil production. The aim of this study is to examine the effects of internal struggle might be on crude oil production or not. The below literature will support further study in acquiring feasible results while addressing the research question.
The study of Ikelegbe (2010) was focusing on the oil, resource struggles and the post-conflict evolution in the Niger Delta region. It has been examined from the study that there are various conflicts that generally affects the production of oil such as poor governance, disparities in opportunities, economic decline, state repression, enormous unemployment and profound poverty linked with social rebellions, civil conflicts and intra-state battles, access to resources, and many more. Niger Delta region involves oil-production areas and other related for reasons of development objectives, political expedience and administrative convenience. According to the highlights of Apergis, Hayat, and Saeed (2021), there is an unequal effect of biased uncertainty on the prices of oil in the region of the Niger Delta.
In addition, Igwe (2020) highlighted in his study that Africa was considered the topmost country for producing oil. This was having a high amount of substantial toll on the economy. Moreover, the study of Paki and Ebienfa (2011) studied that the ethnic minorities populated Niger Delta region that accepts a load of gas and oil production illogically leftovers one of the least developed parts of the nation whereas oil is the fulcrum of the economy of Nigerian. The Niger Delta region has suffered from unsophisticated endemic poverty and environmental degradation. Therefore, the persistent marginalization, discrimination, repression, suppression, and disempowerment of previously peaceful anxieties and worries by the people for periods made fierce oil anxieties certain, henceforth the violence that currently characterizes the region. The entire paper summarises that until the criticisms of the Niger Delta region, revolutionary distresses limited successfully and the development of Niger Delta region raised to the forefront of national development, are appropriately addressed, peach will be indefinable and the helms of economic development beached.
Political and National Limitations in the Niger Delta Region
Babatunde (2012) highlighted that oil wealth improves Nigeria as a nation, nevertheless, it similarly worsens the poverty and deficiency in the oil-bearing regions of the Niger Delta. Social and ecological risks were faced by the oil-bearing organisations or communities that concluded in the violence which have characterized the Niger Delta region. Onduku (2007) examined that crisis in the Western Niger Delta has likewise been accredited for the inabilities of the federal government to solve the issues and worries to ensure and provide an acceptable political climate.
Considering the study of Obi (2009) which was conducted while focusing on Nigeria’s Niger Delta region to understand the multifaceted drivers of vicious oil-related battle. Oil bearing regions have faced countless issues related to the environment that are connected with pollution from the removal of derivatives like drilling fluids in production, cutting drills, injection of chemicals, and more. The study has found some viewpoints on the causes/drivers of battle in Nigeria such as new political economy, neo-patrimonialism, resource or Oil Curse, environmental scarcities, horizontal inequality-conflict perspective, and more. The entire study concludes that Niger delta ethnic subgroups are increasing the apparent discriminations when it comes to the distribution of benefits and oil revenues. It accepts a load of gas and oil production illogically leftovers one of the least developed parts of the nation whereas oil is the fulcrum of the economy of Nigerian.
The below graph is presenting a fluctuation in crude oil production from the pre-disruption level. There were some events that happened in North Africa and the Middle East those are unsettled and tightened the oil market. It affected short-term as well as long-term supply disruptions that are current as well as potential. In January 1979, the production of Iran crude oil was decreased by 90% due to which Iran had to face supply loss. In addition, Kuwait’s oil production also suffered a lot due to a high amount of damage due to internal discord and external interference. In addition, the Iran revolution was beginning in 1978 which result in an average drop of 3.9M barrels per day in the production of Iran crude oil (EIA, 2011). The below graph is presenting a statistic of the same:
Figure 1: Change in Crude oil production
(Source: EIA, 2011)
According to the study of Osuagwu and Olaifa (2018), the Niger Delta region comprises of high assorted ecosystems that are helpful of various species of aquatic fauna and flora and terrestrial. This study is focusing on the effects of oil spills on the production of fish in the Niger Delta. It has been examined from the study that fishery loan employs an undesirable effect on the production of fish and this can be credited to the blockages to access these loans. The study also summarises that there is a trade-off amongst the activities of oil misuse and the production of fish due to the oil spills. The findings of the study revealed that increasing the level of oil spillage and oil production has a negative effect on fish production in Nigeria’s Delta region.
Impact of the Niger Delta Crisis on the Nigerian Economy
Bodo and David (2018) have conducted their study on the oil crisis in the Niger Delta region. This study explains how the crisis began and how it has been overcome. Nigerian have suffered a lot and suffered various years of marginalism and inattention from the investigation of oil and product distribution by government and multinational oil organisations. It has been examined from the study of Bright and Hruby (2015) that several people think that Nigeria has a probable aspect of becoming a worldwide powerhouse of Africa and could be overcome various troubles and problems which is currently the development of Nigeria.
The study Odalonu and Eronmhonsele (2015) highlighted that the Nigerian delta region is considered by near to the ground unemployment level and Infrastructural development of over 85 per cent. The oil disaster in the Nigeria Delta region had affected oil investigation and reduced the revenue which was increasing due to the sales of oil. The Nigerian Delta region which accounts for oil production of over 80% with over 600 oil fields, 275 flow stations, 10 oil and gas export terminals, 5,284 oil wells, and more are normal social facilities that are limited (Austine, Sunday, and Raymond, 2014).
According to the above section of the literature review, the researcher examined the effects of internal conflicts on crude oil production while using relevant literature in this research study. The researcher found a gap in the literature that there should be a detailed discussion of any case which can provide any evidence on this particular research matter. For this, the researcher has chosen a case of the Nigeria Delta oil crisis and involved prior studies related to the effects of internal conflicts on crude oil production. In respect to this, the researcher has chosen a secondary data collection method for collecting prior and existing studies for analysing the data. This is how the researcher will present and evaluate the research.
Beginning with the research methodology, the researcher first has to consider the research matter thoroughly. The major intention of this segment is to deliberate and propose the methods and techniques that are relevant for this study (Sileyew, 2019).
In this, there are two different types of research designs i.e., qualitative and quantitative. The use of qualitative research design facilitates the researcher to focus on observational information and avoid numerical facts. The use of quantitative research design facilitates the researcher to focus on numerical data instead of using non-numerical facts. In addition, there is also a possibility to use both types of methods together which is known as mixed research design. It involves both types of research design (qualitative as well as quantitative) (Sileyew, 2019).
As per this study, the researcher is aiming to collect only qualitative data from secondary sources. The motive of this study is to examine the effects of internal conflict on crude oil production while considering the case of the Nigeria Delta crisis. For this, the researcher has to involve prior studies while using both the research designs.
For this study, the researcher is aiming to choose an exploratory research design for exploring the effects of internal conflict on crude oil production while considering the case of the Nigeria Delta crisis. In this, the investigator will involve the exploration of a research topic and problem (Swedberg, 2020). Other than this, the epistemology research method deals with theories of knowledge and this method helps in knowing the reality through possible facts. It works based on a research problem. The study is aiming to test the variables in this study while using secondary data only. There will be no use of primary data in this study (Bahari, 2010). The research topic is entirely based on the case of the Nigeria Delta oil crisis which was started in the early 1990s. It is difficult to find potential candidates for resolving this particular research matter (Igwe, 2020). Therefore, the researcher is proposing a secondary method for testing assumptions and analysing data.
Research Question and Aims
The collection of data is the most crucial step in the research study. Primary and secondary are two different approaches for collecting data. The use of primary data is for collecting fresh, new, and current data from the participants which the researcher uses in the analysis part to evaluate results. On the other hand, the use of secondary data is used for collecting information from prior studies while using articles, journals, books, newspapers, reports, and more (Mkandawire, 2019). The objective of this research paper is to examine the effects of internal conflict on crude oil production while considering the case of the Nigeria Delta crisis. For this, the researcher has to involve prior studies; therefore, considering the research problem, the researcher has chosen a secondary data collection method for collecting prior and existing studies for analysing the data. This is how the researcher will present and evaluate the research.
The researcher is focusing on collecting secondary information while using literature review as a research strategy. The research paper will focus on an exploratory research design for collecting data. In relation to research matter and proposed methods, the researcher suggests that discourse analysis is appropriate for analysing the secondary data which involves qualitative data. This analysis method is appropriate for focusing on understanding and interpreting the information. It uses codes and themes for analysing the results. This method is also appropriate for systematically categorising the material which has been collected. It gives appropriate results which uses in further discussion and concluding the study (Tayebi Abolhasani, 2019).
H1a: There is a significant effect of internal conflicts on crude oil production
H1b: There is less or no effect of internal conflicts on crude oil production
As there is no involvement of participants, therefore, there is low ethical risk involved in this research paper. However, there are some points that the researcher has to consider for avoiding any kind of ethical issues such as copyright, taking care of plagiarised work and more. It is necessary to follow the guidelines of the university for accomplishing the work with quality (Gajjar, 2013).
The researcher has proposed a secondary data collection method in this study for using prior articles in order to explore the research matter while examining the effects of internal conflict on crude oil production while considering the case of the Nigeria Delta crisis. For this, it is difficult to collect relevant and adequate articles in the study. The outdated articles can affect the quality of the research paper. Moreover, it is necessary to make sure that the research matter is not broad, it should be specific and the articles selected are relevant for resolving the research concern (Shipman, 2014).
The research will be conducted concerning the topic of the effect of internal conflict on crude oil production. In this, a case study of the Nigeria Delta oil crisis has been selected for examining the effects of internal conflict on crude oil production while using this particular case. Not only this but the techniques and approaches used in methodology will be adequate for the study as it will look that how suitable and appropriate techniques will operate and work for a longer period and results as efficient and effective. More or less, the researcher is also focusing on using cost-effective methods and it has been found that secondary methods are more cost-effective in comparison to primary data collection methods. Additionally, the research proposal is achievable and practical as it will recognise the strengths and weaknesses of the proposed strategies, techniques, and methods of methodology. The above-selected methods are appropriate for examining the effects of internal conflict on crude oil production while considering the case of the Nigeria Delta oil crisis.
References
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Apergis, N., Hayat, T. and Saeed, T., 2021. US partisan conflict uncertainty and oil prices. Energy Policy, 150, p.112118.
Austine, E., Sunday, E. and Raymond, A.O., 2014. Globalization and environmental degradation of the Niger Delta Region of Nigeria. Globalization, 4(13).
Babatunde, A., 2012. Oil exploitation and local economy in the oil-bearing areas of Niger Delta, Nigeria. In APSA Africa 2012 Workshop Paper.
Babatunde, A.O., 2014. Oil, environmental conflict and the challenges of sustainable development in the Niger Delta. Journal of Peacebuilding & Development, 9(2), pp.77-82.
Bahari, S.F., 2010. Qualitative versus quantitative research strategies: contrasting epistemological and ontological assumptions. Jurnal Teknologi, pp.17â-28.
Bodo, T. and David, L.K., 2018. The petroleum exploitation and pollution in Ogoni, Rivers State, Nigeria: The community perspective. European Scientific Journal, 14(32), pp.197-212.
Bright, J. and Hruby, A., 2015. The next Africa: An emerging continent becomes a global powerhouse. Macmillan.
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Odalonu, B.H. and Eronmhonsele, J., 2015. The irony of amnesty programme: incessant oil theft and illegal bunkering in the Niger Delta region of Nigeria. International Journal of Humanities and Social Science Invention, 4(8), pp.9-18.
Osuagwu, E.S. and Olaifa, E., 2018. Effects of oil spills on fish production in the Niger Delta. PloS one, 13(10), p.e0205114.
Osuma, G., Babajide, A.A., Ikpefan, O.A., Nwuba, B.E. and Jegede, W.J., 2019. Effects of global decline in oil price on the financial performance of selected deposit money banks in Nigeria. International Journal of Energy Economics and Policy, 9(3), pp.187-195.
Paki, F.A. and Ebienfa, K.I., 2011. Militant oil agitations in Nigeria’s Niger Delta and the economy. International Journal of Humanities and Social Science, 1(5), pp.140-145.
Shipman, M.D., 2014. The limitations of social research. Routledge.
Sileyew, K.J., 2019. Research design and methodology. In Cyberspace. IntechOpen.
Swedberg, R., 2020. Exploratory research. The production of knowledge: Enhancing progress in social science, pp.17-41.
Tayebi Abolhasani, A., 2019. Introduction to research methodology: Standard procedures for qualitative data analysis. Science and Technology Policy Letters, 9(2), pp.67-96.
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