In order to protect the environment and national resources, Osagie Okunbor, the Managing Director of Shell Petroleum Development Company of Nigeria (SPDC) and the Country Chair of Shell Companies in Nigeria, encouraged the Federal Government to take action against illicit refining and crude oil theft. At the Nigerian Association of Petroleum Explorationists’ Annual International Conference, Okunbor underlined Shell’s dedication to Nigeria’s energy Security through Gogo Eneyok, the company’s exploration manager. With subsidiaries, Shell works in the upstream, midstream, downstream, and Renewable Energy sectors.
This covers Daystar Power, All On, and Shell Nigeria Gas. According to Okunbor, the company is concentrating on lowering Greenhouse gas emissions, expanding domestic gas distribution via a 150-kilometer network, and offering communities better energy options. In order to strengthen these initiatives, he emphasised the necessity of better regulatory frameworks and the application of the Petroleum Industry Act. Theft of crude oil and illicit refining are two serious issues that are threatening Nigeria’s ecology and economy. According to estimates, Oil Theft costs Nigeria about $3 billion a year, making it one of the most important economic issues facing the nation.
Unlicensed refiners improperly dispose of trash.
Due to sophisticated theft activities in the Niger Delta, production has recently dropped to as low as 1.2 million barrels per day (bpd), which is much less than the 1.8 million bpd OPEC allotment. Due to Pipeline disruptions caused by oil theft, unlicensed refiners improperly dispose of trash, causing spills and environmental degradation. Particularly in oil-rich regions like Rivers and Bayelsa States, this environmental harm jeopardises local ecosystems and creates serious health hazards. Illicit refining and theft have disastrous effects for the environment.
There have been thousands of oil leaks in the Niger Delta, and the Nigerian National Petroleum Corporation (NNPC) has documented 9,000 pipeline violations in a single year. In addition to ruining farmlands and fisheries and contaminating soil and water, these activities pose major health concerns to nearby communities. Although they show the scope of the problem, cleanup efforts like Shell’s $1 billion Ogoniland Restoration Project have not yet adequately addressed the long-term effects. Drone deployment to identify illicit activity and real-time pipeline monitoring are two examples of Shell’s creative solutions.
Many illicit refineries have been found and demolished.
Through its agreements with All On, Shell has supported more than 40 clean energy entrepreneurs in the renewable energy space, bringing Solar Energy solutions to underserved areas. By upgrading its infrastructure, Shell Nigeria Gas made it possible for industrial users to convert from diesel to cleaner natural gas, lowering operating costs and carbon emissions. In tackling these problems, Shell has made great progress. The business keeps spending money on cutting-edge Technology to reduce greenhouse gas emissions, hitting reduction goals and increasing operational effectiveness. In order to provide cleaner energy throughout a 150-kilometer distribution system, Shell Nigeria Gas (SNG) is growing its domestic gas network.
Additionally, Daystar Power and All On’s renewable energy projects are providing inexpensive, Sustainable Energy solutions to both urban and rural areas. To fight oil theft, the Nigerian government and other interested parties have stepped up their efforts. Among the noteworthy projects is a $48 billion yearly pipeline surveillance deal with Tantita Security Services Limited, a company run by a former terrorist. As a result of this action, many illicit refineries have been found and demolished. To be successful in the long run, these initiatives must address root causes like Poverty and corruption.
Related Article: Combating Chronic Oil Theft in Nigeria
Stricter regulatory frameworks and community involvement are also essential, according to international organisations like the United Nations and regional NGOs. Despite the lack of detailed data regarding percentage reductions, Shell’s operations have shown quantifiable progress in lowering emissions. Meanwhile, the monthly unrealised government income losses from oil theft are projected to be $700 million. The impact of these losses on Nigeria’s capacity to pay for basic services highlights the necessity of systemic changes. Protecting Nigeria’s resources, re-establishing environmental equilibrium, and developing a sustainable energy future require a concerted effort by businesses, governments, local communities, and international organisations.