Introduction
1.1 The Background Of The Study
The economy is the backbone of any nation. Nigeria, like other development countries of the world is paying more attention on how to accelerate the rate of development through the various sections of the economy.
Oil, a very versatile and flexible non-productive, depleting, natural (hydrocarbon) resource is a fundamental input to modern economic activities providing about 50% of the total energy demanded in the world excluding the former centrally planned economy. Oil exploiting countries of the world depend heavily on oil revenue for foreign exchange earnings and for the government budget, in most cases, reaching 90% or above.
Petroleum or crude oil is an oily bituminous liquid, consisting of a mixture of many substances mainly the elements of carbon and hydrogen, and thus known as hydrocarbon. It also contains a very small amount of non-hydrocarbon element, chief amongst which are sulphur, nitrogen, and oxygen. Petroleum industry covers the exploration and production of crude oil as well as petroleum refining, marketing and servicing. Specific policy objectives with respect to petroleum and mining can be summed up us follows.
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