In this post we will be looking at the meaning of refinery, meaning of oil bunkering, the effects of oil bunkering in the Niger-Delta region of Nigeria, causes and solutions of oil theft in Nigeria.
INTRODUCTION.
Petroleum refineries transform crude oil into petroleum products that can be used for economic activities such as transport, heating and power generation. They are complex and expensive to operate legally because they use a lot of energy and must comply with regulations. Legal refineries are located in industrial locations that have been carefully designed to ensure the safety of workers and the environment. Years of government neglect and unemployment in Nigeria’s Niger Delta region have given rise to a widespread industry of illegally refining stolen oil. It is estimated that about 10% of Nigeria’s daily oil production is lost to illegal activities. That’s 200,000 barrels, worth about US$21 million per day at US$107 per barrel. The Nigerian Natural Resources Charter estimated in 2019 that crude oil theft represented an economic loss of at least N995.2 billion or US$2.8 billion annually. Communities in the Niger Delta have long agitated against the degradation of their environment caused by multinational oil companies. After years of insurgency, the government introduced amnesty programmers for militants who chose to surrender. But those who were not rehabilitated, and other unemployed youths, resorted to illegal refinery activities to make a living.
WHAT IS REFINERY?
A refinery is a production facility composed of a group of chemical engineering unit processes and unit operations refining certain materials or converting raw material into products of value. Oil refineries serve an important role in the production of transportation and other fuels. The crude oil components, once separated, can be sold to different industries for a broad range of purposes. Lubricants can be sold to industrial plants immediately after distillation, but other products require more refining before reaching the final user. Major refineries have the capacity to process hundreds of thousand barrels of crude oil daily. In the industry, the refining process is commonly called the “downstream” sector, while raw crude oil production is known as the “upstream” sector. The term downstream is associated with the concept that oil is sent down the product value chain to an oil refinery to be processed into fuel. The downstream stage also includes the actual sale of petroleum products to other businesses, governments, or private individuals.
WHAT IS OIL BUNKERING?
Bunkering is the supplying of fuel for use by ships (such fuel is referred to as bunker), including the logistics of loading and distributing the fuel among available shipboard tanks. A person dealing in trade of bunker (fuel) is called a bunker trader. The term bunkering originated in the days of steamships, when coal was stored in bunkers. Nowadays, the term bunker is generally applied to the petroleum products stored in tanks, and bunkering to the practice and business of refueling ships. Bunkering operations take place at seaports and include the storage and provision of the bunker (ship fuels) to vessels. Singapore is currently the largest bunkering port in the world.
“Bunkering” as theft: In countries such as Nigeria, “bunkering” also refers to the clandestine siphoning off or diverting of oil from pipelines and storage facilities. Such bunkering is often crudely carried out, causing both accidents and pollution: At its core, the process involves stealing crude oil from pipelines belonging to international oil companies like Shell, and channeling the product into tanks where it is boiled at high temperatures. The theft is often called oil bunkering in Nigeria. Bunker oils contain metals and contaminants that can cause corrosion in commercial ships, cruise ships and cargo. Since it carries a range of contaminants, it can lead to a serious environmental hazard when it spills.
- Bunker oil is residual fuel oil of high viscosity commonly used in marine and stationary steam power plants. It requires preheating to 220 – 260 °F (104 – 127 °C). In comparison with other petroleum products, bunker oil is extremely crude and highly polluting.
- Bunker oil is less useful than other types of oil because it is so viscous that it must be heated with a special heating system before use and it contains relatively high amounts of pollutants, particularly sulfur, which forms sulfur dioxide upon combustion.
- Heavier petroleum products like diesel and lubricating oil precipitate out more slowly, and bunker oil is literally the bottom of the barrel; the only thing denser than bunker fuel is the residue which is mixed with tar for paving roads and sealing roofs.
- Although bunker oil is extremely cheap, many oil spills have involved bunker oils, leading some environmental organizations to call for a ban on the substance. Because it is so dense, it is extremely difficult to clean up and it easily coats animals and shorelines.
THE EFFECTS OF OIL BUNKERING IN THE NIGER-DELTA REGION OF NIGERIA.
Despite the fact that the Niger Delta region contributes a significant amount to the nations GDP, its rural communities are still grossly underdeveloped and her inhabitants considered among the poorest in the country which had resulted to inhabitants engaging in crimes including oil bunkering just to make ends meet. Which country or state would not do the same? Because how can you how can we talk about a nation blessed with this natural resource but unable to provide social amenities for her citizens or state blessed with is still regarded as one of the poorest. The actions of these inhabitants in their aim to get attention from the government had done more harm than good to the dwellers of Niger-delta such as:
- Loss of huge amount of oil revenues as a result of illegal bunkering and vandalization.
- Economic disaster such as oil spillage which had endangered the lives of fishes in the sea.
- Pollution of rivers, seas thereby making lives unbearable for the majority of the dwellers who depends on fish farming as a means of livelihood.
- Displacement and loss of lives as a result of explosions, high criminal rates and so on.
There have also been several incidents of third-party interference, tampering with mechanical components and the installed barriers on crude oil well heads, with evidence of illegal bunkering from the wells. For each incident, the oil companies take steps to immediately re-secure the wells. But the criminal activities persist and sometimes result to explosions and, or fire incidents.
CAUSES OF OIL THEFT IN NIGERIA.
Many things cause illegal bunkering in Nigeria. They include:
- Poverty: The poor must eat. They want money at all costs. They then see this avenue as their source of income. As such, they have no alternative to doing the only thing that seems to be available to them.
- Neglect: The federal government neglects the people who live where oil is drilled. Many people in the Niger Delta areas where oil is got have died fighting for their people’s rights. To show their grievances, they have kidnapped many oil workers demanding a high ransom. Yet, the federal government continues to neglect them. To them, the federal government is cheating them. By the constitution, the oil belongs to the federal government. However, the land belongs to them by nature. Therefore, equity demands that the owners of the land should be compensated. Where the federal government fails to compensate them, they resort to taking it by force and trick hence the illegal bunkers.
- Greed: So many people who are involved in illegal bunkering are not poor. They work in reputable offices. They are well paid. Yet, they involve themselves in the business. They are only greedy. They are not satisfied with whatever they have.
- Lack of Monitoring: The federal government does not provide effective monitoring of the oil pipelines. They are left for nobody. Some of the pipeline’s rust for lack of care. Some of them burst on their own due to old age. Some people are then lured into scooping the oil for their use as they deem fit.
- Sabotage: Some highly placed politicians use illegal bunkering to sabotage the efforts of the federal government. They cry foul against the federal government saying that it is not doing enough. This they do just to sabotage the government’s effort.
SOLUTIONS OF OIL THEFT IN NIGERIA.
No matter the nature of the problems of illegal bunkering in Nigeria, there are possible solutions. The possible solutions include:
- Surveillance: The federal government should take responsibility and keep surveillance wherever oil pipelines are. One major problem of the federal government is that it does not take care of its properties. The federal government spends money in laying the oil pipelines only to leave them to thieves. Nobody takes care of them. The government should take care of them.
- Employment: Those who live around the pipelines should be employed to work near them. They will easily know when the pipes burst or when they are tampered with. They can then take remedy for whatever should be done.
- Refineries: The federal government should build refineries close to oil wells. There are crude oil pipes that run from Warri to Kaduna. Imagine the distance! Anything can happen to them in such a distance. If the oil can be refined in the locality where it is, the possibility of stealing the crude oil will be reduced to the barest minimum. The diversion of petroleum products can then be easily taken care of.
- Cooperation: One major reason the problem of illegal bunkering is difficult to deal with is the type of people who are involved. High-ranking security officers are in the business. High-ranking members of oil companies are involved. It is only when all these people cooperate with the federal government and the oil companies that the problem can be solved.
- Prosecution: Anybody caught in illegal bunkering crime should face the full wrath of the law. People are still in the business because nothing happens to them. The moment the crime is taken seriously, people will leave it.
Conclusion.
Illegal bunkering is a serious problem in Nigeria. It makes the country lose money. Many lives have also been lost in the process. Therefore, all asunder should cooperate with the federal government and the oil companies that are responsible for petroleum products in Nigeria in controlling it. Stealing is bad. It should stop. Nigeria belongs to all of us. Let us make it a better place for all of us to live in. Illegal bunkering cannot help us in any way.