oil spill data

8/6/2019 Oil Spill Data

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Oil Spill Data

The Shell Petroleum Development Company of Nigeria Limited is committed to minimising oilspills to the environment and to cleaning up all spills in the Niger Delta when they occur, as fast

as possible, no matter what their cause.

We work hard to reduce the number and volume of operational spills, which are under ourcontrol i.e. spills due to corrosion, human error and equipment failure. Over the past 5 years, lessthan 30% of spills from SPDC facilities have been in this category, whilst the majority have beencaused by sabotage or theft. SPDC facilities and pipelines are operated to the highestinternational standards and certified annually to ISO14001 standard

SPDC has publicly reported oil spill statistics annually since 1995 and this website furtherenhances transparency by recording as fully as possible every spill that happens from ourfacilities as soon as it is possible to get accurate information. It tracks the progress of our spill

response from when we learn about the leak to when clean-up is completed and signed off.

Go straight to Spill Incident Data

How we respond to spills

SPDCs operators continuously monitor for leaks and respond to anomalies. In addition, anyreports, either by community surveillance teams under contract to SPDC or by the public, areresponded to immediately. SPDC first shuts down the flow of oil to the leak before steps aretaken to verify other details about the incident in preparation for the response, which starts withcontainment. By immediately shutting down pipelines or flowlines that are damaged and

containing the spills, we minimize the damage to the environment.

To provide transparency with respect to the cause and consequence of the spill, a team includingrelevant government agencies and SPDC is accompanied by representatives of impactedcommunities when they visit the site, as quickly as possible after the leak occurs. This JointInspection Visit, or JIV for short, determines the spread, the volume and the cause of the spill.The government agencies include the Department of Petroleum Resources (DPR), the NationalOil Spill Detection and Response Agency (NOSDRA), the relevant State Ministry of theEnvironment and the Police. After the JIV, SPDCs spill response team makes the necessaryrepairs and recovers as much of the spilled oil as possible. This is called the clean-up.

After the clean-up, there can still be residual oil that has soaked into the soil, or oil that issticking to vegetation. A post clean-up inspection, involving representatives from the sameparties listed for JIVs, assesses whether the site needs further remediation to comply withinternational standards. If remediation is not required, then the spill site can be certified cleanand the incident closed out.


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Remediation is a longer term process aimed at returning the site to its previous state. There areseveral ways to achieve international standards of restoration depending on whether the spill ison Land or Swamp terrain.

Three methods of Remediation are in use on Land - Remediation by Enhanced Natural

Attenuation (RENA), Remediation by Stabilization / Solidification and Low TemperatureThermal Desorption. The RENA technique is the predominant method in use and may be appliedin-situ (treating the soil on site) or ex-situ (removing the soil to be cleaned elsewhere andreturned site).

Remediation in swampy terrain depends on the nature of swamp, whether seasonal or perennial.A seasonal swamp is dry during the dry season and holds water during rainy season.Remediation of the impacted soil can be undertaken using RENA method in the dry season.

In perennial swamps, free phase oil on water and vegetation is cleaned by flushing and skimmingwhilst oily sludge is remediated by systematic agitation using swamp buggies coupled with

application of suitable nutrient amendment to promote biodegradation and other naturalattenuation processes.

After completion of the remediation process, the site is handed over for close-out inspection andcertification by the relevant Government agencies. The entire spill response process is governedby performance standards, as prescribed by Nigerian Law, in particular as defined in the DPREGASPIN 2002 (Department of Petroleum Resources Environmental Guidelines and Standardsfor the Petroleum Industry in Nigeria). This standard is applied to all spills, regardless of thecause.

For further information please contact:

Head Oil Spill [email protected]

Spill statistics

Please Note:YTD= Incidents for which JIVs are yet to be conducted/concluded.


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As the ever growing amount of barrels of oil being spewed by the deep sea BP

oil ring, what are the most common ways to clean up an oil spill?

Many diverse and unusual practices have been used on shore for decades on oil clean ups such ason site oil spill burning, chemicals added and straw bales used. The removal of the top layer of

contaminated sand taken to a quarry and washed and pressure washing beach boulders and rocksclose to the final cleaning stage.

The use of human hair turned into mats, and even feathers have been used at times for oil spillcleanup. US coastal environment groups keep absorbent mats and containment booms in case ofan oil spill to protect their area.

In the case with off-shore rigs out in the open sea other methods can be used to reduce

drastically the disasters it can provoke before winds and currents carry the oil spill on to

coastlines!

Burning the Oil Spill at the Source

In very specific conditions, oil spills are every now and then burned away, but it's used mostoften as a last-minute effort. On the site burning of oil was firstly used in this BP oil spill. Theburning of oil can have a negative impact on ocean life.

Oil Containment Booms

The first line of action when an oil spill occurs is to use a floating barrier known as acontainment boom. They come in many different shapes, sizes and colors but mostly look like

long floating sausages that have about a foot or more of skirt under water and these imbeddedwith weights for stabilization and increased containment capacity in case of bigger swells andwinds. This keep the oil from dispersing further out into the sea until it can be removed.

Sea conditions are hard to forecast and containment booms are used in light and rather calm seaconditions. In the case where there is a storm brewing in the area this method can come out to berather useless, as oil floats, heavy swells and winds would carry a great part of the oil spill overthe boom, dispersing it even more!


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Natural Oil Spill Cleanup Products

As the larger volume of the oil spill has been collected, natural absorbents(commonly refereed to as sorbents) are added to the surface of the ocean. Absorbents that attractoil and repel water are the ones that are most sought. A company in the US manufactures

absorbent mats out of donated hair for cleaning up oil spills. Also other products used these pastdecades are, sawdust, straw, hay, sheep's wool, corn cobs, peat moss and feathers.

Oil Spill! (Let's-Read-and-Find-Out Science 2)

Amazon Price: $2.88

List Price: $5.99

Blowout in the Gulf: The BP Oil Spill Disaster and the Future of Energy in America

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Not One Drop: Betrayal and Courage in the Wake of the Exxon Valdez Oil Spill

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Removing Oil with Dispersing Agents

Dispersing chemicals that are used to remove oil from the sea are always a concern for many.When added to the oil spill some of these products provoke a progressive clumping of oil for

easier collection, others break up the molecular structure and some ends up slowly sinking to thesea bed! Some of these chemicals are quite toxic and various groups claim that these chemicalswill soon be in our food chain!

Removing Oil with Biologic Agents

Biologically manufactured agents that "naturally digest" oil in the sea are enzymes andmicroorganisms that eat oil used in techniques like bio augmentation and biostimulation. Anumber of these methods result in the oil bonding with another product and then falling to thesea bed as well where the damage may be far greater and again provoke a negative impact onflora and fauna and consequentially on the quality of sea foods we consume.


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Key environmental issues in the Niger Delta ofNigeria relate to itspetroleum industry.

The delta covers 20,000 km within wetlands of 70,000 km formed primarily by sedimentdeposition. Home to 20 million people and 40 different ethnic groups, this floodplain makes up7.5% of Nigeria's total land mass. It is the largest wetland and maintains the third-largest

drainage basin in Africa. The Delta's environment can be broken down into fourecologicalzones: coastal barrier islands, mangrove swamp forests, freshwaterswamps, and lowlandrainforests. This incredibly well-endowed ecosystem, which contains one of the highestconcentrations ofbiodiversity on the planet, in addition to supporting abundant flora and fauna,arable terrain that can sustain a wide variety of crops, lumberor agricultural trees, and morespecies offreshwater fish than any ecosystem in West Africa. The region could experience a lossof 40% of its inhabitable terrain in the next thirty years as a result of extensive dam constructionin the region. The carelessness of the oil industry has also precipitated this situation, which canperhaps be best encapsulated by a 1983 report issued by theNNPC, long before popular unrestsurfaced:

We witnessed the slow poisoning of the waters of this country and the destruction of vegetation

and agricultural land by oil spills which occur during petroleum operations. But since the

inception of the oil industry in Nigeria, more than twenty-five years ago, there has been no

concerned and effective effort on the part of the government, let alone the oil operators, to

control environmental problems associated with the industry'.[1]

Contents[hide]

y 1 Oil spillso 1.1 Extent of the problemo 1.2 Causeso 1.3 Consequences

y 2 Loss of mangrove forestsy 3 Depletion of fish populationsy 4 Water Hyacinth invasiony 5 Natural gas flaringy 6 Biological remediationy 7 See alsoy 8 Referencesy 9 External links

[edit] Oil spills

[edit] Extent of the problem

The Department of Petroleum Resources estimated 1.89 million barrels ofpetroleum werespilled into theNiger Delta between 1976 and 1996 out of a total of 2.4 million barrels[2] spilledin 4,835 incidents.[3] (approximately 220 thousand cubic metres).


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Oil spillage has a major impact on the ecosystem into which it is released. Immense tracts of themangrove forests, which are especially susceptible to oil (mainly because it is stored in the soiland re-released annually during inundations), have been destroyed. An estimated 5 to 10% ofNigerian mangrove ecosystems have been wiped out either by settlement or oil. The rainforestwhich previously occupied some 7,400 km of land has disappeared as well.[4]

Spills in populated areas often spread out over a wide area, destroying crops and aquaculturesthrough contamination of the groundwaterand soils. The consumption of dissolved oxygen bybacteria feeding on the spilled hydrocarbons also contributes to the death offish. In agriculturalcommunities, often a year's supply of food can be destroyed instantaneously. Because of thecareless nature of oil operations in the Delta, the environment is growing increasinglyuninhabitable.

People in the affected areas complain about health issues including breathing problems and skinlesions; many have lost basic human rights such as health, access to food, clean water, and anability to work.[7]

[edit] Loss of mangrove forests

Vegetation in the Niger River Delta consists of extensive mangrove forests,brackishswampforests, and rainforests. The large expanses ofmangrove forests are estimated to coverapproximately 5,000 to 8,580 km of land.[11] Mangroves remain very important to theindigenous people of Nigeria as well as to the various organisms that inhabit these ecosystems.

Human impact from poor land management upstream coupled with the constant pollution ofpetroleum has caused five to ten percent of these mangrove forests to disappear. The volatile,quickly penetrating, and viscous properties of petroleum have wiped out large areas of

vegetation. When spills occur close to and within the drainage basin, the hydrologic force of boththe river and tides force spilled petroleum to move up into areas of vegetation.

Mangrove forests are included in a highly complex trophic system. If oil directly affects anyorganism within an ecosystem, it can indirectly affect a host of other organisms. These floralcommunities rely on nutrient cycling, clean water, sunlight, and proper substrates. With idealconditions they offer habitat structure, and input of energy via photosynthesis to the organismsthey interact with. The effects of petroleum spills on mangroves are known to acidify the soils,halt cellular respiration, and starve roots of vital oxygen.[12]

An area of mangroves that has been destroyed by petroleum may be susceptible to other

problems. These areas may not be suitable for any native plant growth until bacteria andmicroorganisms can remediate the conditions. A particular species of mangrove,Rhizophoraracemosa lives higher in the delta system. As the soils supportingR. racemosa become too toxic,a non-native invasive species of palm,Nypa fruticans, quickly colonizes the area. This invasivespecies has a shallower root system that destabilizes the banks along the waterways, furtherimpacting sediment distribution lower in the delta system.N. fruticans also impedes navigationand decreases overall biodiversity. In places whereN. fruticans has invaded, communities areinvestigating how the palm can be used by local people.[13]


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The loss of mangrove forests is not only degrading life for plants and animals, but for humans aswell. These systems are highly valued by the indigenous people living in the affected areas.Mangrove forests have been a major source of wood for local people. They also are important toa variety of species vital to subsistence practices for local indigenous groups, who unfortunatelysee little to none of the economic benefits of petroleum. Mangroves also provide essential habitat

for rare and endangered species like the manatee andpygmy hippopotamus. Poor policydecisions regarding the allocation of petroleum revenue has caused political unrest in Nigeria.[14]This clash among governing bodies, oil corporations, and the people of Nigeria has resulted insabotage to petroleum pipelines, further exacerbating the threat to mangrove forests.

The future for mangrove forests and other floral communities is not all negative. Local andoutside groups have provided funds and labor to remediate and restore the destroyed mangroveswamps. The federal government of Nigeria established theNiger Delta DevelopmentCommission (NDDC) in 2000 which aims to suppress the environmental and ecological impactspetroleum has had in the region. Governmental and nongovernmental organizations have alsoutilized technology to identify the source and movement of petroleum spills.

[11]

[edit] Depletion of fish populations

The fishing industry is an essential part of Nigerias sustainability because it provides muchneeded protein and nutrients for people, but with the higher demand on fishing, fish populationsare declining as they are being depleted faster than they are able to restore their number. Fishingneeds to be limited along the Niger River and aquacultures should be created to provide for thegrowing demand on the fishing industry. Aquaculture allows for fish to be farmed for productionand provide more jobs for the local people ofNigeria.

Overfishing is not the only impact on marine communities. Climate change, habitat loss, and

pollution are all added pressures to these important ecosystems. The banks of theNiger Riveraredesirable and ideal locations for people to settle. The river provides water for drinking, bathing,cleaning, and fishing for both the dinner table and trading to make a profit. As the people havesettled along the shores of the rivers and coasts, marine and terrestrial habitats are being lost andecosystems are being drastically changed. The shoreline along the Niger River is important inmaintaining the temperature of the water because the slightest change in water temperature canbe fatal to certain marine species. Trees and shrubs provide shade and habitat for marine species,while reducing fluctuation in water temperature.[15]

The Niger River is an important ecosystem that needs to be protected, for it is home to 36families and nearly 250 species of fish, of which 20 are endemic, meaning they are found

nowhere else on Earth.

[16]

With the loss of habitat and the climate getting warmer, everyprevention of temperature increase is necessary to maintain some of the marine environments.Other than restoring habitat, pollution can also be reduced. Problems such aspesticides fromagricultural fields could be reduced if a natural pesticide was used, or the fields were movedfarther away from the local waterways. Oil pollution can be lowered as well; if spills werereduced then habitat and environmental impacts could be minimized. By limiting the devastationcaused by disturbances to the marine environment, such as pollution, overfishing, and habitatloss, the productivity andbiodiversity of the marine ecosystems would increase.


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[edit] Water Hyacinth invasion

Water Hyacinth is an invasive species that was introduced into Africa as an ornamental plant,and which thrives in polluted environments. Water Hyacinth has the capability to completelyclog the waterways in which it grows, making it nearly impossible to navigate fishing boats.[17]

In recent years it has found its way into the Niger River, choking out both sunlight and oxygen tothe marine organisms that live there. When a species such as Water Hyacinth makes its way intothe ecosystem, it competes with native plants for sunlight, diminishing energy resources withinthe marine environment. With the loss of energy some populations will not be able to survive, ortheir numbers may drop beyond a point of no return, creating a threatened environment. Addedto the loss of energy, water hyacinth also takes up and depletes the water of oxygen which isessential to the livelihood of all marine organisms.

[edit] Natural gas flaringSee also: Gas flare

Nigeria flares more natural gas associated with oil extraction than any other country, withestimates suggesting that of the 3.5 billion cubic feet (100,000,000 m ) of associated gas (AG)produced annually, 2.5 billion cubic feet (70,000,000 m ), or about 70% is wasted viaflaring.

[citation needed] This equals about 25% of the UK's total natural gas consumption, and is theequivalent to 40% of the entire African continent's gas consumption in 2001. Statistical dataassociated with gas flaring are notoriously unreliable, but Nigeria may waste US $ 2. billion peryear by flaring associated gas.

[18][19]Flaring is done as it is costly to separate commercially viable

associated gas from the oil. Companies operating in Nigeria also harvest natural gas forcommercial purposes, but prefer to extract it from deposits where it is found in isolation as non-associated gas. Thus associated gas is burned off to decrease costs.

Gas flaring is generally discouraged as it releases toxic components into the atmospshere andcontributes to climate change. In western Europe 99% of associated gas is used or re-injectedinto the ground. Gas flaring in Nigeria began simultaneously with oil extraction in the 1960s byShell-BP. Alternatives to flaring are gas re-injection, or to store it for use as an energy source. Ifproperly stored, the gas could also be utilized for community projects.

Gas flaring releases of large amounts ofmethane, which has a high global warming potential.The methane is accompanied by the other majorgreenhouse gas, carbon dioxide, of whichNigeria was estimated to have emitted more than 34.38 million metric tons of in 2002,accounting for about 50% of all industrial emissions in the country and 30% of the total CO2emissions. While flaring in the west has been minimized, in Nigeria it has grown proportionally

with oil production.

[20]

The international community, the Nigerian government, and the oil corporations seem inagreement that gas flaring needs to be curtailed. Efforts to do so, however, have been limitedalthough flaring has been declared illegal since 1984 under section 3 of the "Associated GasReinjection Act" of Nigeria.

[citation needed]


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While OPEC and Shell, the biggest flarer of natural gas in Nigeria, alike claim that only 50% ofall associated gas is burnt off via flaring at present, these data are contested. The World Bankreported in 2004 that, "Nigeria currently flares 75% of the gas it produces.".

[20]

Gas flares have potentially harmful effects on the health and livelihood of the communities in

their vicinity, as they release a variety of poisonous chemicals including nitrogen dioxides,sulphur dioxide, volatile organic compounds likebenzene, toluene, xylene and hydrogen sulfide,as well as carcinogens likebenzapyrene and dioxin. Humans exposed to such substances cansuffer from a variety ofrespiratory problems. These chemicals can aggravate asthma, causebreathing difficulties and pain, as well as chronic bronchitis. Benzene known to be emitted fromgas flares in undocumented quantities, is well recognized as a cause forleukemia and otherblood-related diseases. A study done by Climate Justice estimates that exposure to benzenewould result in eight new cases ofcanceryearly in Bayelsa State alone.[20]

Gas flares are often located close to local communities, and regularly lack adequate fencing orprotection for villagers who may risk working near heat of the flare. Many of these communities

claim that nearby flares cause acid rain which corrodes their homes and other local structures,many of which have zinc-based roofing. Some people resort to the use ofasbestos-basedmaterial, which is stronger in repelling acid rain deterioration.[21] Unfortunately, this onlycontributes to their own declining health and the health of their environment. Asbestos exposureincreases the risk of forming lung cancer, mesothelioma, and asbestosis.[4][22]

Whether or not flares contribute to acid rain is debatable, as some independent studies conductedhave found that the sulphur dioxide and nitrous oxide content of most flares was insufficient toestablish a link between flaring and acid rain. Other studies from U.S. Energy InformationAdministration (EIA) report that gas flaring is "a major contributor to air pollution and acidrain".

Older flares are rarely relocated away from villages, and are known to coat the land andcommunities in the area with soot and to damage adjacent vegetation. Almost no vegetation cangrow in the area directly surrounding the flare due to the prevailing heat.[4]

In November 2005 a judgement by the Federal High Court of Nigeria ordered that gas flaringmust stop in a Niger Delta community as it violates guaranteed constitutional rights to life anddignity. In a case brought against the Shell Petroleum Development Company of Nigeria (Shell),Justice C. V. Nwokorie ruled in Benin City that "the damaging and wasteful practice of flaringcannot lawfully continue."

[edit] Biological remediation

The use ofbiological remediation has also been implemented in areas of the delta to detoxify andrestore ecosystems damaged by oil spills. Bioremediation involves biological components in theremediation or cleanup of a specific site. A study conducted in Ogbogu located in one of thelargest oil producing regions of Nigeria has utilized two plant species to clean up spills. The firststage of cleanup involves Hibiscus cannabinus, a plant species indigenous to West Africa. H.cannabinus is an annual herbaceous plant originally used for pulp production. This species has


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high rates of absorbency and can be laid down on top of the water to absorb oil. The oil saturatedplant material is then removed and sent to a safe location where the hydrocarbons can be brokendown and detoxified by microorganisms. The second stage of bioremediation involves a plantknown as Vetiveria zizanioides, a perennial grass species. V. zizanioides has a deep fibrous rootnetwork that can both tolerate chemicals in the soil and can also detoxify soils through time

requiring little maintenance. The people of Ogbogu hope to use these methods of bioremediationto improve the quality of drinking water, soil conditions, and the health of their surroundingenvironment.[12]

Within the Imo State of Nigeria, a study was conducted in the city ofEgbema to determine themicrofloral communities present at the site of an oil spill. These microorganisms have the abilityto break down the oil, decreasing the toxic conditions. This is recognized as another method ofbioremediation and scientists are trying to determine whether the properties thesemicroorganisms possess can be utilized for the cleanup of future spills.[23]

However bleak this situation may seem for the Niger Delta region there are clearly alternatives

that can be implemented to save it from future contamination. Satellite imagery combined withthe use ofGeographical Information Systems (GIS) can be put to work to quickly identify andtrack spilled oil. To hasten the cleanup of spills, regional cleanup sites along the problem areascould help contain spills more quickly. To make these tasks feasible more funding must beprovided by the stakeholders of the oil industry. Nongovernmental organizations will keepfighting the damaging effects of oil, but will not win the battle alone.[11]

[edit] See also


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generated with gas from Gbaran-Ubie at the Bayelsa State power plant at Imiringi, as well as anew 225-megawatt power plant being built in Gbaran by the federal government.


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Organization of the Petroleum Exporting

Countries, OPEC

OPEC is an international Organization of eleven developing countries which are heavily relianton oil revenues as their main source of income. Membership is open to any country which is asubstantial net exporter of oil and which shares the ideals of the Organization. The currentMembers are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, theUnited Arab Emirates and Venezuela.

Since oil revenues are so vital for the economic development of these nations, they aim to bringstability and harmony to the oil market by adjusting their oil output to help ensure a balancebetween supply and demand. Twice a year, or more frequently if required, the Oil and EnergyMinisters of the OPEC Members meet to decide on the Organization's output level, and considerwhether any action to adjust output is necessary in the light of recent and anticipated oil market

developments.

OPEC's eleven Members collectively supply about 40 per cent of the world's oil output, andpossess more than three-quarters of the world's total proven crude oil reserves. More details canbe found in the FAQ on OPEC, and in the sections on the individual Member Countries, whichfeature tables with selected oil, gas and economic data.

FAQs about OPEC

What is OPEC?

OPEC is an international Organization of 11 oil-exporting developing nations that co-ordinatesand unifies the petroleum policies of its Member Countries. OPEC seeks to ensure thestabilization of oil prices in international oil markets with a view to eliminating harmful andunnecessary fluctuations, due regard being given at all times to the interests of oil-producingnations and to the necessity of securing a steady income for them; an efficient, economic andregular supply of petroleum to consuming nations; and a fair return on their capital to thoseinvesting in the petroleum industry.

When was OPEC formed?

OPEC was formed at a meeting held on September 14, 1960 in Baghdad, Iraq, by five FounderMembers: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. OPEC was registered with the UnitedNations Secretariat on November 6, 1962 (UN Resolution No 6363).


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Who are the OPEC Member Countries?

The OPEC Statute stipulates that: "any country with a substantial net export of crude petroleum,which has fundamentally similar interests to those ofMember Countries, may become a FullMember of the Organization, if accepted by a majority of three-fourths of Full Members,

including the concurring votes of all Founder Members". The Statute further distinguishesbetween three categories of membership: Founder Member, Full Member and AssociateMember. Founder Members of the Organization are those countries which were represented atOPEC's first Conference, held in Baghdad, Iraq, in September 1960, and which signed theoriginal agreement establishing OPEC. Full Members are the Founder Members, plus thosecountries whose applications for membership have been accepted by the Conference. AnAssociate Member is a country which does not qualify for full membership, but which isnevertheless admitted under such special conditions as may be prescribed by the Conference.

Click for more detailed information on the OPEC Member Countries.

There are currently 11 OPEC Member Countries:

Country Joined OPEC Location

Algeria 1969 Africa

Indonesia 1962 Asia

IR Iran 1960* Middle East

Iraq 1960* Middle East

Kuwait 1960* Middle East

SP Libyan AJ 1962 Africa

Nigeria 1971 Africa

Qatar 1961 Middle East

Saudi Arabia 1960* Middle East

United Arab Emirates 1967 Middle East

Venezuela 1960* South America

* Founder Members

How does OPEC function?

Representatives of OPEC Member Countries (Heads of Delegation) meet at the OPECConference to co-ordinate and unify their petroleum policies in order to promote stability andharmony in the oil market. They are supported in this by the OPEC Secretariat, directed by the


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Board of Governors and run by the Secretary General, and by various bodies including theEconomic Commission and the Ministerial Monitoring Committee.

The Member Countries consider the current situation and forecasts of market fundamentals, suchas economic growth rates and petroleum demand and supply scenarios. They then consider what,

if any, changes they might make in their petroleum policies. For example, in previousConferences the Member Countries have decided variously to raise or lower their collective oilproduction in order to maintain stable prices and steady supplies to consumers in the short,medium and longer term.

What is the OPEC Conference?

The Conference is the supreme authority of the Organization, and consists of delegationsnormally headed by Their Excellencies the Ministers of Oil, Mines and Energy of MemberCountries. The Conference generally meets twice a year, in March and September, and inextraordinary sessions whenever required. It operates on the principle of unanimity and one

Member, one vote. It is responsible for the formulation of the general policy of the Organizationand the determination of the appropriate ways and means of its implementation.

The Conference also decides upon applications for membership of the Organization, and onreports and recommendations submitted by the Board of Governors on the affairs of theOrganization. It approves the appointment of Governors from each Member Country and electsthe Chairman of the Board. Moreover, the Conference directs the Board to submit reports ormake recommendations on any matter of interest to the Organization, and considers and decidesupon the Organizations budget, as submitted to it by the Board.

Who are the Heads of Delegation?

The Heads of Delegation to OPEC are the official representatives of each Member Country tothe OPEC Conference. They are therefore normally Their Excellencies the Ministers of Oil,Mines and Energy of Member Countries.

What is the Board of Governors?

The Board of Governors, or BoG, can be compared to the board of directors of a commercialorganization. The BoG is composed of Governors nominated by Member Countries andconfirmed by the Conference for two years. The Board directs the management of theOrganization; implements Resolutions of the Conference; draws up the Organizations annual

budget and submits it to the Conference for approval. It also decides upon any reports submittedby the Secretary General and submits reports and recommendations to the Conference on theaffairs of the Organization.

The role of the Board of Governors is discussed in Article 20 of the OPEC Statute (below).

"The Board of Governors shall:


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1. Direct the management of the affairs of the Organization and the implementation of thedecisions of the Conference;

2. Consider and decide upon any reports submitted by the Secretary General;3. Submit reports and make recommendations to the Conference on the affairs of the

Organization;

4. Draw up the Budget of the Organization for each calendar year and submit it to the Conferencefor approval;

5. Nominate the Auditor of the Organization for a duration of one year;6. Consider the Statement of Accounts and the Auditor's Report and submit them to the

Conference for approval;

7. Approve the appointment of Directors of Divisions and Heads of Departments, upon nominationby Member Countries, due consideration being given to the recommendations of the Secretary

General;

8. Convene an Extraordinary Meeting of the Conference; and9. Prepare the Agenda for the Conference.

What is the Economic Commission?

The Economic Commission is a specialized body operating within the framework of theSecretariat, with a view to assisting the Organization in promoting stability in the internationaloil market. The Commission is composed of a Commission Board, National Representatives, anda Commission staff. The Commission Board consists of the Secretary General, the NationalRepresentatives appointed by the Member Countries, and a Commission Co-ordinator (who isex-officio the Director of the Research Division).

What is the Ministerial Monitoring Committee?

The Ministerial Monitoring Committee (MMC) was established in March 1982 by the 63rd(Extraordinary) Meeting of the Conference. The MMC is chaired by the President of theConference and comprises all the Heads of Delegation. The MMC meets periodically to monitorthe market situation and to recommend to the Conference any measures that might be taken.

What is the Ministerial Monitoring Sub-Committee?

The Ministerial Monitoring Sub-Committee (MMSC) was established in February 1993 by the10th Meeting of the Ministerial Monitoring Committee in order to monitor oil production andexports by Member Countries. The MMSC comprises three Heads of Delegation and theSecretary General.

What is the OPEC Secretariat?

The OPEC Secretariat functions as the Headquarters of OPEC. It is responsible for carrying outthe executive functions of the Organization, in accordance with the provisions of the Statute andunder the direction of the Board.


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The Secretariat consists of the Secretary General, and the Research Division headed by theDirector of Research, and comprising the Petroleum Market Analysis, Energy Studies and DataServices Departments. Other functions include the PR & Information Department, theAdministration & Human Resources Department, and the Office of the Secretary General.

The Secretariat was originally established in Geneva, Switzerland, in 1961 but it was moved toVienna, Austria, in 1965. The 8th (Extraordinary) OPEC Conference approved the HostAgreement with the Austrian Government in April 1965, prior to the opening of the OPECSecretariat in Vienna on September 1, 1965.

Why does OPEC set oil production quotas?

The OPEC Statute requires OPEC to pursue stability and harmony in the petroleum market forthe benefit of both oil producers and consumers.To this end, OPEC Member Countries respond to market fundamentals and forecastdevelopments by co-ordinating their petroleum policies. Production limits are simply one

possible response. If demand grows, or some oil producers are producing less oil, OPEC canincrease its oil production in order to prevent a sudden rise in prices. OPEC might also reduce itsoil production in response to market conditions in order to counter falling prices.

What is OPEC's current production ceiling?

OPEC's crude oil production ceiling and individual Member Country output limits are set out inthe official Press Releases. For details of the current output ceiling, see Press Releases 4/2001.

Can an OPEC Member Country change its rate of oil production?

OPEC is an international Organization that aims to co-ordinate the production policies of itsMember Countries through consensus decision-making.

Each Member Country retains absolute sovereignty over its oil production. Member Countriesagree by unanimous vote on any such production ceilings and their allocation to the respectiveMember Countries.

Does OPEC control the oil market?

No, OPEC does not control the oil market. OPEC Member Countries produce about 41 per centof the world's crude oil and 15 per cent of its natural gas.

However, OPEC's oil exports represent about 55 per cent of the oil traded internationally.Therefore, OPEC can have a strong influence on the oil market, especially if it decides to reduceor increase its level of production.

OPEC seeks stability in the oil market and endeavours to deliver steady supplies of oil toconsumers at fair and reasonable prices. The Organization has achieved this in a number ofways: sometimes by voluntarily producing less oil, sometimes by producing more when there is


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a shortfall in supplies (such as during the Gulf Crisis in 1990, when several million barrels of oilper day were suddenly removed from the market).

How does OPEC oil production affect oil prices?

The Oil and Energy Ministers of the OPEC Member Countries meet at least twice every year toco-ordinate their oil production policies in light of market fundamentals, ie, the likely futurebalance between demand and supply. The Member Countries, represented by their respectiveHeads of Delegation, may or may not alter production levels during these regular Meetings andany Extraordinary Meetings of the OPEC Conference. Given that OPEC Countries produceabout 41 per cent of the world's oil and 55 per cent of the oil traded internationally, any decisionsto increase or reduce production may lower or raise the price of crude oil.

The impact of OPEC output decisions on crude oil prices should be considered separately fromthe issue of changes in the prices ofoil products, such as gasoline or heating oil. There are manyfactors that influence the prices paid by end consumers for of oil products. In some countries

taxes comprise 70 per cent of the final price paid by consumers, so even a major change in theprice of crude oil might have only a minor impact on consumer prices.

How does OPEC influence world trade?

OPEC is mostly involved in the oil market, but it has long been aware of the need forimprovements in world trade.

Back in 1975, OPEC was part of the calls for the creation of a new international economic orderbased on justice, mutual understanding and a genuine concern for the well-being of all people ofthe world. OPEC also called on the industrialised and developing countries to get together in

order to solve the problems facing the poor countries and to look for a way to establish a bettereconomic system by allowing more trade and more exchange of knowledge between developingand OECD countries.

The OPEC Member Countries established the OPEC Fund For International Development in1976 in order to assist non-OPEC developing countries to improve their economies, includingtheir trade. The OPEC Fund has so far committed itself to loans or grants totalling more than $4billion. The OPEC Fund has been active in many regions, including Asia, Africa, Latin America,the Middle East and the Caribbean. The OPEC Fund has supported a range of different types ofprojects, from providing clean water and energy to remote communities, to building houses,schools, hospitals and roads and developing industry, farming and trade opportunities.

OPEC also assists in other ways: by supporting developing countries' efforts to help themselves;by helping to remove trade barriers in individual countries and on an international level, forinstance through the World Trade Organization; and by helping the world to maintain a strongeconomic system, based on steady supplies of oil at a reasonable price.

OPEC cannot do this alone. It has been working hard to encourage other oil producers to co-operate in the oil market, and therefore to help preserve the balance of the world economy.


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When these different countries finally realise that we all depend upon each other for trade,investment and a healthy life, then we shall all enjoy the full benefit of co-operation andimproving economies, not only in the developing world, but in the industrialised world as well.

What are OPEC's proven crude oil reserves?

At the end of 1999, OPEC had proven reserves of 811,526 million barrels of crude oil,representing 77.8 per cent of the world total of 1,042,536 million barrels. Source: OPEC AnnualStatistical Bulletin 1999.

What is OPEC's attitude towards fuel-efficient cars?

OPEC is happy to see improvements in transportation technology to make it cleaner, safer andmore efficient. We would like more people to enjoy the benefits of personal mobility and to dothis in an environmentally sustainable manner.

Oil is a precious, limited resource and we want people to value it accordingly.

Does OPEC support environmental policies?

OPEC supports sound environmental policies that are fair and equitable, based on proven needsand designed to address those needs.

OPEC is concerned about the environment and we want to ensure that it is clean and healthy forfuture generations.

OPEC also supports sustainable economic development, which requires steady supplies of

energy at reasonable prices. Many countries have already introduced heavy taxes on oil products.In some countries, the price that motorists pay for gasoline is three or four times higher than theprice of the original crude oil. Taxes account for 70 per cent or more of the final price of oilproducts in some countries.

As a result of these oil taxes, some of the oil-consuming countries (especially those in Europewhere taxation levels are highest) receive much more income from oil than OPEC does.

OPEC is concerned that many of the so-called 'green' taxes that are currently levied on oil do notspecifically help the environment. Instead, the simply go into government budgets to be spent onother things. Taxes might lead to instability in the oil industry, creating problems for many

countries and industries.

Industrialised countries are developing policies to limit the use of fossil fuels in order to reducetheir emissions of carbon dioxide. Many are already levying heavy taxes, particularly on oilproducts. Yet studies have shown that OECD members could cut their carbon dioxide emissionsby 12 per cent by 2010 and still maintain their tax revenues, if they adopted apro rata tax systemthat levies tax on all forms of energy according to their carbon content.


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OPEC is concerned that some countries may impose environmental and taxation policies that areharmful to those who rely on fossil fuels for a substantial part of their income.

Some countries with high oil taxes actually subsidise domestic coal production, yet coalproduces more carbon dioxide than oil. Carbon dioxide is one of the greenhouse gases which are

believed to contribute to global warming.

OPEC is worried about discriminatory oil taxes because we are committed to providing a stablepetroleum market.

We need to invest in oil exploration and development in order to have production capacityavailable as demand rises in the years ahead, but we also need to be sure that there will beenough demand for that oil and that we will get a reasonable price.

If we do not invest in expanding oil production capacity before it is needed, the world could facesudden price shocks, leading to serious global economic problems.

OPEC is also concerned that many of the environmental policies now being proposed andadopted do not have the full support of the scientific community. There is still considerabledebate about the impact of global warming, and how it can best be addressed. OPEC supportsfurther research into these important issues.

OPEC is also spending heavily to improve its environmental impact, by locating sources ofhigher quality oil and gas, by developing cleaner fuels for consumers, and by reducing theimpact of its activities through safer, cleaner drilling, transportation and refining processes.

OPEC also participates in many international meetings in order to remind governments and

others who are debating environmental policies that they must consider the needs of developingcountries, especially those that rely on their income from oil.

Can OPEC guarantee the security of oil supplies?

Yes, in the right conditions, OPEC can provide an increasing amount of oil to meet the expectedgrowth of global oil demand. OPEC currently produces about 40 per cent of the world's crudeoil, but that is forecast to grow to more than 50 per cent in the next quarter of a century.

OPEC has a policy of maintaining stability in the oil market, and its Member Countries haveoften done this by increasing or decreasing the amount of oil they produce. Only OPEC nations

have any significant spare oil production capacity, and this enables them to increase productionat relatively short notice. However, because OPEC is not the only source of oil in the market, itcannot guarantee the movement of oil prices, or the availability of supplies to all consumers at alltimes.

OPEC has over 77 per cent of the world's oil reserves, and this will enable us to expand oilproduction to meet the growth in demand. But in order to expand our output, we need to be surethat the oil industry will continue to be profitable. Oil producers invest billions of dollars in


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exploration and infrastructure (drilling and pumping, pipelines, docks, storage, refining, staffhousing, etc) and a new oil field can take 3-10 years to locate and develop.

If oil producers do not invest enough money and do it far enough in advance, then the worldcould face a shortage of oil supplies in future.

Therefore, OPEC is concerned about issues that undermine the prosperity of the oil industry andthus threaten the security of world oil supplies. One such issue is oil taxation in the consumingcountries.

Oil taxes reduce the incomes of oil producers, and limit the funds they have available formaintenance, exploration and production activities.

Oil taxes also limit the growth in oil demand and raise costs for other industries. As a result, oilproducers and other investors are unsure of the future development of oil prices and profits, andthey might hesitate from making the necessary investments.

Although OPEC does try to maintain stability and to invest in a timely manner, our efforts toguarantee the security of oil supplies can be undermined - or supported - by the actions of oilconsumers.

Is there any need for security of oil demand?

Yes, oil consumers need steady supplies of oil, and oil producers rely on steady demand. Ifdemand changed suddenly it would have a major impact on the profitability of oil producers andthe economies of many countries around the world.

Oil production is a long-term affair: the oil industry works 24 hours a day, 365 days a year,excluding maintenance or bad weather and other disruptions. Oil facilities require many millionsof dollars of investment, and the investors try to earn a reasonable return on their capital.

A downturn in oil demand could force oil production to slow down or stop. This could physicallydamage the oil fields, reducing the amount of oil that can be recovered in future. The oilinstallations could also be damaged. Some facilities, such as those operating in the oceans, arevery difficult and expensive to shut down.

When production slows down, oil producers might be forced to lay off staff. Downstreamoperators, such as gasoline retailers, refiners and transport companies, could also be forced to

shed staff.

If oil producers receive lower incomes they must spend less money and import fewer goods fromoil consumers. If investors are unsure about the risks and the likely returns from petroleuminvestments they may not make those investments. If we do not invest enough money, or do it farenough in advance, then the world could face a shortage of oil supplies and a downward spiral inthe global economy.


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However, if oil producers continue to receive reasonable prices and stable demand, they willmaintain their production and invest far enough in advance to meet the growth of demand.

Thus the security of oil supplies relies upon the security of oil demand. Oil producers - and oilconsumers - need to work together to ensure that the security of oil supply and demand are

preserved.


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Barkindo named alternate chairman of

OPEC board

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y Friday, September 11, 2009 - Sulaimon Salauyy Viewed 61 Timesyy Rating: by 0 users

NIGERIA's representative at the Organisation of Petroleum Exporting Countries (OPEC) andGroup Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr.

Mohammed Sanusi Barkindo, was on Wednesday voted as the 'Alternate Chairman,' Board ofGovernors of OPEC for year 2010.

The board of governors is the organ that directs the affairs of OPEC and the implementation ofthe decision of the conference. It is also charged with the duty of drawing up the budget of theorganisation for each calendar year and submitting same to the conference for approval.

Barkindo, who was the OPEC Secretary General in 2006, would in this new position, be actingin collaboration with the Governor of Socialist Peoples Libyan, Arab Jamahiriya, Mr. Ahmed M.Elghaber, who was appointed as chairman of the board of governors for the same period.

The conference also elected Germnico Pinto, Minister of Mines & Petroleum of Ecuador andhead of its delegation, as president of the conference for one year, with effect from January 1,2010, and Masoud Mir-Kazemi, Minister of Petroleum of the Islamic Republic of Iran and Headof its Delegation, as Alternate President, for the same period.

The appointment, according to a statement issued by OPEC on its website after the 154th(ordinary) meeting held in Vienna, Austria on Wednesday night, would take effect from January1, 2010.

In another historic move, the cartel has concluded plans to relocate its secretariat to Vienna'sFirst District by next month, describing the meeting as the last one to be held in the building,

which has housed OPEC's secretariat for over 30 years.

The Minister of Petroleum of Angola and President of the Conference, Jos Maria Botelho deVasconcelos, who chaired the conference, said: "I should like to note that today's meeting will bethe last one we shall hold in this building, which has housed OPEC's Secretariat for more than 30years.

"At the end of November 2009, the secretariat will be relocated to Vienna's First District, to open


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a new chapter in the life of our organisation. Significantly, this will happen just before the startof our 50th Anniversary year."

OPEC's 50th anniversary, coming up next year, is promised to be an all-time celebration, as thecartel is already bracing up for special programmes to mark the event.

Confirming with speculations that it would maintain the output, the OPEC conference agreed tokeep the current production level unchanged at 24.845 million barrels per day, banking on arecovery in the world economy to maintain prices near today's $72 a barrel.

The statement reads in part: "The conference reviewed current oil market conditions and futureprospects and observed that, whilst there are signs that economic recovery is under way, thereremains great concern about the magnitude and pace of this recovery, especially in the majorindustrialised nations of the OECD."

There has been some easing of the overhang in crude oil stocks but market fundamentals remain

weak, refinery utilisation rates are low and product inventories have risen considerably.


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oil spill data

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