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Energy sources for Nigeria
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EWRY Vol. 7. No. 9. JPQ. 76%77l, 1982 Prirltcd m Great Britain.
ENERGY SOURCES FOR NIGERIA CHIMAEDDIEI. OKOROH Echo Resources International Corp., P.O. Box 25636,Philadelphia, PA 19144,U.S.A. (Received 30 September 1981)
Abstract-Nigeria’s energy resources and energy future are discussed. 1. INTRODUCTION
public consensus has developed on the need for national energy policies and better planning in the utilization df energy resources in Nigeria. A look at Nigeria’s energy future is timely as a period of rapid technological growth and industrial development begins.‘** At the present time, Nigeria exports a relatively high percentage (92%) of the petroleum produced annually. In addition, about 95% of all produced natural gas is flared. Only a relatively minor fraction of the coal produced is used and the rest exported to West African countries. Water power in Nigeria is not yet fully developed. Although the deposits of uranium and oil sand may be substantial, the reserves are not currently known. The proportions in which mineral fuels are used are not related to their relative abundance. Based on present production rates, domestic reserves of petroleum will last 20 years, those of natural gas 63 years, and those of coal 1503 years. Nigeria is not currently and is not likely to become selfsticient in terms of energy requirements. During the past decade, Nigeria’s population has increased by 28.4%. Of vital concern for the immediate future in Nigeria are the demands on energy consumption and mineral resources resulting from increasing population pressure. A
2. ENERGY DEMAND AND SUPPLY
In the last two decades, increasing population has been coupled with increasing energy supplies. Domestic consumption of energy from all sources was equivalent in 1980 to approximately 78 x 106bbl.’ To supply this energy, Nigeria consumed 128,000tonnes of coal, 58.4 million bbl of crude oil, 1.45 billion m3 of natural gas, and 3.00 billion kWh of hydroelectricity. The energy values of these commodities are shown in Table 1. Table 2 gives estimated data for changes in population, energy consumption, and per capita energy consumed in Nigeria for 1960, 1965, 1970, 1971, 1975, and 1980. In l%O,percupitu energy use was 8.28 x 108 J; in 1970,it was 7.55 x 108J (affected by civil war); by 1980, it jumped to 50.6 x 108J. Between 1970 and 1980, per cupifa use increased about 570%, while total energy consumption increased by 760%, and the population grew from 66.2 million to about 85.0 million, a 28.4% increase. The percupitu use rate since 1960shows an overall increase of about 511%. It is evident that energy demand and consumption increased much more rapidly than the population. Energy demands have been increasing ever since the discovery of fossil fuels in Table1. Domesticconsumption of fuel and energy (1979);from a provisional report issued by the Ceatnd Bank of Nigeria, Annual Report 1980. I
I
I
Coal
Estimated resource
128,000
720,000
I
0.8
Hydroelectricity
1.462.000
8,190,OOO
9.5
Natural gas
1,919.ooo
10,780,000
12.4
11,947.ooo
58,950,OOO
77.3
Petroleum
769
770
CHIMA EDDIE I.
OKouon
Table 2. Changes in Nigerian population,energy consumption andpercopilo energy consumption;( I quad = IO” J). In 1970, Nigeria was recovering from the effects of a civil war (1%7-70). which affected especially the energy-producing part of the country. Hence, the low figures for energy consumption, which may introduce errors in future projections and analyses.
Population (illmillions)
Total energy coneumptlon (in quad)
Annual per capita energy conmmption in J x 1018
1960
50.70
0.042
8.28
1965
58.50
0.077
1970
66.20
0.050
7.55
1971
67.80
0.063
9.20
1975
74.90
0.180
24.0
1980
85.0
0.430
50.6
13.1
and the sources of energy have shifted in response to both changing needs and changing supplies. The discovery of coal saw non-commercial sources of energy (such as fuel wood) giving way to coal, which remained dominant until the late 1950s.In the years that followed and especially after the Nigerian civil war (1%7-69), there was a tremendous growth in the use of petroleum products and, in some cases, of natural gas as well. A look at Nigeria’s energy future requires an inventory of the country’s energy resources. Nigeria,
3. ENERGY
RESOURCES
The fossil fuels of current signiticiance (petroleum, natural gas and coal), of potential future significance (oil sand), and the nuclear fuels (uranium, thorium) are concentrated in deposits of varying sizes at different depths and in different parts of Nigeria. Almost all of the known petroleum and natural gas occur in the petroliferous Niger Delta region, while the bulk of the coal deposits is found roughly in the central portion of the country, north of the oil and gas-producing region. Petroleum Nigeria’s proved oil reserves are about 18.2 billion barrels, but probable and possible reserves may bring the total to almost 115 bilhon barrels4 Nigerian reserves of petroleum are estimated to last to about the year 2010. Although Nigeria’s known reserves of petroleum have been shrinking rapidly, optimists see prospects of enormous deposits in the vast areas of the nation’s prospective oil and gas sediments (both on land and under the seas), which remain to be explored. In 1980, petroleum provided 77.3% of the total energy in Nigeria. Natural gas Nigeria has between 9 and 11.0 trillion m3 of natural gas, of which 2.45 trillion m3 are proven reserves.4 At the present rate of annual production, the proven reserves wilI last about 63 years. Potential reserves appear to be very large. In 1980,natural gas provided 12.4%of total energy requirements. About 95% of the natural gas produced is flared. Development of a natural gas industry (LNG) is desirable. Equally important are the build-up of the iron and steel industries, which will use gas. Coal Coal was the fist fossil fuel to be used in Nigeria. Nigeria is the only coal-producing country in West Africa. The proven coal reserves are estimated to be 245 million tonnes.’ The probable reserves are estimated at 800 and possible reserves at 1200 million tonnes. Lignite also occurs extensively in Nigeria but has not yet been mined. It is estimated that probable reserves of lignite are 400 and possible reserves 750 million tonnes. The use of coal has been impeded by introduction of diesel locomotives some’years ago. Coal is expected to become a major factor in Nigeria’s energy future. In 1980, coal provided nearly 1.0% of the total energy.
Energy sources for Nigeria
771
Table 3. Nigerian mineral fuel reserves and resonrces (1979);data sources: Oil and Gas Journal (June 1979),Federal 05ce of Statistics Abstracts (Lagos, Nigeria), and OPEC Annual Report (1979). Estimated
Mneral
fuel
proved
TCBeNes
I
Potential reserves
Amlual
production
Life expectancy, years
COd
245 x 106 tonnes
2.0 billion tc.nnee
163.000 tonnes
92-115 billion bbla
843.9 x 106 bbls
22
9-11 trillion m3
30.5 x 109 m3
63
unknovn
*one
Petroleum
18.2 x log bbls
Natural gaa
2.49 x 1012 m5
Oil sands
unknm
4. NUCLEAR
FISSION
1503
unknovn
ENERGY
Discoveries of uranium have been made in Nigeria and the uranium reserves may be substantial. Over the long term, nuclear energy should fill a growing portion of Nigeria’s energy demands, particularly if breeders are introduced. 5. HYDROELECTRICITY
The most favorable water power site, Kainji, has been under development. The Kainji power station had an initial capacity of 320 MWe which is now being raised to 960 MWe. Total energy from water resources is still relatively underdeveloped in Nigeria. Two major hydroelectric projects (the 300MWe Shiroro Dam on Kaduna River and the 500 MWe Jebbah Dam on the Niger River) are under construction. The Nigerian Electric Power Authority (NEPA) has identified dam sites at Ikom, Makurdi, and Lokoja capable of delivering400, 600, and 1950MWe, respectively. Further studies should be undertaken in southern Nigeria, where there are rains year round to maintain adequate water levels in the dams. While hydroelectric power provided only 9.5% of total energy in 1980,it is expected to become a major factor in Nigeria’s energy future. 6. OIL SANDS
There are oil-sand and tar-sand deposits in Nigeria. The reserves are not currently known, but thay are expected to be substantial. 7. CONCLUSION
An estimate of all proven reserves of Nigeria1 fossil fuels is 33.0 billion barrels equivalent. At present, Nigeria consumes about 1.0 billion barrels of fossil energy per year (including flared gas). Dwindling reserves indicate that Nigeria is likely to face recurring supply problems for petroleum over both the medium and long terms. However, natural gas reserves may prove to be adequate for the medium term. Coal utilization will increase. Reserves of oil sands are likely to be substantial. REFERENCES 1. C. E. I. Okoroji, Daffy ‘J’iies 226683,3 (1981). 2. C. E. I. Okoroji, 27~ Nigerian 06seruer 13.5 (19tll). 3. Central Bank of Nigeria, Ann. Rep. MO, Lagos (1981). 4. E. 0. Egbogah and W. 1. Oronsaye, 7%~Gil and Gas 1.77, % (1979). 5. Nigerian YeorbooS Times Press Ltd. Lagos (1979-80).
l!GYVd.7.No.eD
EWRY Vol. 7. No. 9. JPQ. 76%77l, 1982 Prirltcd m Great Britain.
ENERGY SOURCES FOR NIGERIA CHIMAEDDIEI. OKOROH Echo Resources International Corp., P.O. Box 25636,Philadelphia, PA 19144,U.S.A. (Received 30 September 1981)
Abstract-Nigeria’s energy resources and energy future are discussed. 1. INTRODUCTION
public consensus has developed on the need for national energy policies and better planning in the utilization df energy resources in Nigeria. A look at Nigeria’s energy future is timely as a period of rapid technological growth and industrial development begins.‘** At the present time, Nigeria exports a relatively high percentage (92%) of the petroleum produced annually. In addition, about 95% of all produced natural gas is flared. Only a relatively minor fraction of the coal produced is used and the rest exported to West African countries. Water power in Nigeria is not yet fully developed. Although the deposits of uranium and oil sand may be substantial, the reserves are not currently known. The proportions in which mineral fuels are used are not related to their relative abundance. Based on present production rates, domestic reserves of petroleum will last 20 years, those of natural gas 63 years, and those of coal 1503 years. Nigeria is not currently and is not likely to become selfsticient in terms of energy requirements. During the past decade, Nigeria’s population has increased by 28.4%. Of vital concern for the immediate future in Nigeria are the demands on energy consumption and mineral resources resulting from increasing population pressure. A
2. ENERGY DEMAND AND SUPPLY
In the last two decades, increasing population has been coupled with increasing energy supplies. Domestic consumption of energy from all sources was equivalent in 1980 to approximately 78 x 106bbl.’ To supply this energy, Nigeria consumed 128,000tonnes of coal, 58.4 million bbl of crude oil, 1.45 billion m3 of natural gas, and 3.00 billion kWh of hydroelectricity. The energy values of these commodities are shown in Table 1. Table 2 gives estimated data for changes in population, energy consumption, and per capita energy consumed in Nigeria for 1960, 1965, 1970, 1971, 1975, and 1980. In l%O,percupitu energy use was 8.28 x 108 J; in 1970,it was 7.55 x 108J (affected by civil war); by 1980, it jumped to 50.6 x 108J. Between 1970 and 1980, per cupifa use increased about 570%, while total energy consumption increased by 760%, and the population grew from 66.2 million to about 85.0 million, a 28.4% increase. The percupitu use rate since 1960shows an overall increase of about 511%. It is evident that energy demand and consumption increased much more rapidly than the population. Energy demands have been increasing ever since the discovery of fossil fuels in Table1. Domesticconsumption of fuel and energy (1979);from a provisional report issued by the Ceatnd Bank of Nigeria, Annual Report 1980. I
I
I
Coal
Estimated resource
128,000
720,000
I
0.8
Hydroelectricity
1.462.000
8,190,OOO
9.5
Natural gas
1,919.ooo
10,780,000
12.4
11,947.ooo
58,950,OOO
77.3
Petroleum
769
770
CHIMA EDDIE I.
OKouon
Table 2. Changes in Nigerian population,energy consumption andpercopilo energy consumption;( I quad = IO” J). In 1970, Nigeria was recovering from the effects of a civil war (1%7-70). which affected especially the energy-producing part of the country. Hence, the low figures for energy consumption, which may introduce errors in future projections and analyses.
Population (illmillions)
Total energy coneumptlon (in quad)
Annual per capita energy conmmption in J x 1018
1960
50.70
0.042
8.28
1965
58.50
0.077
1970
66.20
0.050
7.55
1971
67.80
0.063
9.20
1975
74.90
0.180
24.0
1980
85.0
0.430
50.6
13.1
and the sources of energy have shifted in response to both changing needs and changing supplies. The discovery of coal saw non-commercial sources of energy (such as fuel wood) giving way to coal, which remained dominant until the late 1950s.In the years that followed and especially after the Nigerian civil war (1%7-69), there was a tremendous growth in the use of petroleum products and, in some cases, of natural gas as well. A look at Nigeria’s energy future requires an inventory of the country’s energy resources. Nigeria,
3. ENERGY
RESOURCES
The fossil fuels of current signiticiance (petroleum, natural gas and coal), of potential future significance (oil sand), and the nuclear fuels (uranium, thorium) are concentrated in deposits of varying sizes at different depths and in different parts of Nigeria. Almost all of the known petroleum and natural gas occur in the petroliferous Niger Delta region, while the bulk of the coal deposits is found roughly in the central portion of the country, north of the oil and gas-producing region. Petroleum Nigeria’s proved oil reserves are about 18.2 billion barrels, but probable and possible reserves may bring the total to almost 115 bilhon barrels4 Nigerian reserves of petroleum are estimated to last to about the year 2010. Although Nigeria’s known reserves of petroleum have been shrinking rapidly, optimists see prospects of enormous deposits in the vast areas of the nation’s prospective oil and gas sediments (both on land and under the seas), which remain to be explored. In 1980, petroleum provided 77.3% of the total energy in Nigeria. Natural gas Nigeria has between 9 and 11.0 trillion m3 of natural gas, of which 2.45 trillion m3 are proven reserves.4 At the present rate of annual production, the proven reserves wilI last about 63 years. Potential reserves appear to be very large. In 1980,natural gas provided 12.4%of total energy requirements. About 95% of the natural gas produced is flared. Development of a natural gas industry (LNG) is desirable. Equally important are the build-up of the iron and steel industries, which will use gas. Coal Coal was the fist fossil fuel to be used in Nigeria. Nigeria is the only coal-producing country in West Africa. The proven coal reserves are estimated to be 245 million tonnes.’ The probable reserves are estimated at 800 and possible reserves at 1200 million tonnes. Lignite also occurs extensively in Nigeria but has not yet been mined. It is estimated that probable reserves of lignite are 400 and possible reserves 750 million tonnes. The use of coal has been impeded by introduction of diesel locomotives some’years ago. Coal is expected to become a major factor in Nigeria’s energy future. In 1980, coal provided nearly 1.0% of the total energy.
Energy sources for Nigeria
771
Table 3. Nigerian mineral fuel reserves and resonrces (1979);data sources: Oil and Gas Journal (June 1979),Federal 05ce of Statistics Abstracts (Lagos, Nigeria), and OPEC Annual Report (1979). Estimated
Mneral
fuel
proved
TCBeNes
I
Potential reserves
Amlual
production
Life expectancy, years
COd
245 x 106 tonnes
2.0 billion tc.nnee
163.000 tonnes
92-115 billion bbla
843.9 x 106 bbls
22
9-11 trillion m3
30.5 x 109 m3
63
unknovn
*one
Petroleum
18.2 x log bbls
Natural gaa
2.49 x 1012 m5
Oil sands
unknm
4. NUCLEAR
FISSION
1503
unknovn
ENERGY
Discoveries of uranium have been made in Nigeria and the uranium reserves may be substantial. Over the long term, nuclear energy should fill a growing portion of Nigeria’s energy demands, particularly if breeders are introduced. 5. HYDROELECTRICITY
The most favorable water power site, Kainji, has been under development. The Kainji power station had an initial capacity of 320 MWe which is now being raised to 960 MWe. Total energy from water resources is still relatively underdeveloped in Nigeria. Two major hydroelectric projects (the 300MWe Shiroro Dam on Kaduna River and the 500 MWe Jebbah Dam on the Niger River) are under construction. The Nigerian Electric Power Authority (NEPA) has identified dam sites at Ikom, Makurdi, and Lokoja capable of delivering400, 600, and 1950MWe, respectively. Further studies should be undertaken in southern Nigeria, where there are rains year round to maintain adequate water levels in the dams. While hydroelectric power provided only 9.5% of total energy in 1980,it is expected to become a major factor in Nigeria’s energy future. 6. OIL SANDS
There are oil-sand and tar-sand deposits in Nigeria. The reserves are not currently known, but thay are expected to be substantial. 7. CONCLUSION
An estimate of all proven reserves of Nigeria1 fossil fuels is 33.0 billion barrels equivalent. At present, Nigeria consumes about 1.0 billion barrels of fossil energy per year (including flared gas). Dwindling reserves indicate that Nigeria is likely to face recurring supply problems for petroleum over both the medium and long terms. However, natural gas reserves may prove to be adequate for the medium term. Coal utilization will increase. Reserves of oil sands are likely to be substantial. REFERENCES 1. C. E. I. Okoroji, Daffy ‘J’iies 226683,3 (1981). 2. C. E. I. Okoroji, 27~ Nigerian 06seruer 13.5 (19tll). 3. Central Bank of Nigeria, Ann. Rep. MO, Lagos (1981). 4. E. 0. Egbogah and W. 1. Oronsaye, 7%~Gil and Gas 1.77, % (1979). 5. Nigerian YeorbooS Times Press Ltd. Lagos (1979-80).
l!GYVd.7.No.eD