Crude oil is a brownish black or dark green liquid composed primarily of hydrocarbons. It is found in porous rock formations within the earth’s crust and is extracted for use as fuel or for further processing.
Types of Crude Oil
Crude oil is categorized into four classes:
- Class A: Light, volatile oils.
- Class B: Nonsticky oils with a waxy or oily texture.
- Class C: Heavy, sticky oils.
- Class D: Nonfluid oils.
Common Uses of Crude Oil
Aside from being used as fuel, crude oil plays a key role in the production of:
Plastics: Crude oil is essential in manufacturing plastic products, which are used widely in devices, furniture, and home products.
Clothing Materials: Petroleum is vital in making fabrics like polyester, rayon, nylon, and synthetic furs, ensuring the materials are colorful and nonflammable.
Household Items: Items like couch cushions, linoleum, carpet, and even appliances such as refrigerators rely on petroleumbased materials.
Insulation: Crude oil is used in making insulation, which helps regulate home temperatures.
Food Production: Crude oil is involved in the production of fertilizers for growing food, transportation of goods, and even in food packaging through plastics.
Transportation: Crude oil is critical in the automotive industry, where parts like bumpers, interiors, and engine components are made from highperformance plastics due to their lightweight and fuelsaving properties.
Quality and Global Demand
Tapis crude oil from Malaysia is considered the highest quality due to its low sulfur content and low density, making it a benchmark in global trade.
Nigerian Crude Oil
Nigeria produces a “light” and “sweet” crude oil called Bonny Light, which has low sulfur content and is highly desirable in the global market. This type of oil is among the most expensive due to its energy efficiency.
Ownership and Discovery of Oil in Nigeria
Under the Nigerian Constitution, all minerals, including oil, belong to the Federal Government. Oil revenue accounts for 76% of government income and 40% of the nation’s GDP. The first commercial discovery of oil in Nigeria was made by Shell Darcy at the Oloibiri oilfield on January 15, 1956, ending years of exploration.
Key Buyers of Nigerian Oil
India is the largest importer of Nigerian crude oil, followed by Spain and The Netherlands. The main destinations for Nigeria’s oil are Europe and Asia, with significant export values reported in 2023.
