A Time Series Analysis Of The Monthly Sales Of Super Petrol At The NNPC Depot Aba, Abia State For The Period (1995 – 1999)

ABSTRACT

Oil prospecting commenced in Nigeria as far back as 1908, when a German company, the Nigeria Bitumen corporaticn started exploration in the Araromi area of the present Ondo State. Their pioneering efforts, however, ended with the out break of the first world war in 1914. After the world war, some years later in 1937, oil prospecting resumed in Nigeria by shell 0' Arcy, the fore-ninner of the present shell petroleum Development company of Nigeria, there and then was awarded the sole concessionary right of covering the whole territory of Nigeria. The progress of this company was also interrupted by the second world war, but resumed in 1947. It was not until 1956 that oil was discovered in commercial quantity at Oloibiri in the Niger Delta after several 4 years of search and investment of over N30 million. Shell started oil production and export from Oloibiri field in 1958. By 1961, other companies such as Mobil, Gulf, Agip, Safrap (presently called ELF), Amoseas (now Texaco/ chevron) and Tenneco how began exploration activities for oil in the country. Oil production started at a rate of 1500 barrels per day in 1958, but by 1979, it rose to 2.4 million barrels per day. Nigeria has since grown to become the sixth oil producing country, in the world. It is important at this juncture to mention that since after the discovery of oil in the country in 1908, the role of the government in the oil sector has gradually progressed from regulatory one, to direct involvement in oil exploration and exploitation. Initially, government interest was only limited to the collection of royalties and other dues offered it by the oil companies and making rudimentary laws to regulate the activities of he oil industry this was partly due to the fact that oil was very insignificant to the economy before the late sixties and the relative lack of trained personnel and expertise.