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Shell Oil Spill Part 1 Essay

3193 words - 13 pages

A Study of Shell Oil and its Stakeholders in Nigeria
Part 1 (Week Six)

A Review of Basic Issues Regarding the Background and Interests of Stakeholders of
Shell Oil Company in Nigeria

Chapter 1
Introduction
The complexity of understanding the Shell Nigeria oil spill and applying critical analysis and leadership theories to the problem is a challenging debate. A reader would tend to assume that Shell is at fault and should take all the blame for this corporate and ecological mess. Therefore, the introduction needs to provide the reader with sufficient historical information and background of stakeholders such as Royal Dutch Shell Company, Nigeria (country), Niger ...view middle of the document...

Today, Shell continues to create gas and oil from swamps and land in the area of the Niger Delta. Taxes and royalties from Shell companies in Nigeria are their largest financial contributions to Nigeria.

Shell claim that the energy that is created as well as a personal commitment to uphold, develop and finance initiatives in the communities of the Niger Delta are still in place. Shell-BP Petroleum Development Company of Nigeria Limited is the most successful and most established petroleum company in Nigeria. Shell maintains it has a long standing view of developing relationships and a commitment to Nigeria, the economy and its cultural people. (Shell, 2013)

Currently Nigeria is the most populated country on the African continent with an approximate 135 million people. Nigeria has stood in the face of continued political disturbances and financial problems since securing independence in 1960. Currently, Nigeria has genuine economic and social problems and challenges. Though it is commonly known that Nigeria has large and well established gas and oil reserves, their financial revenue is currently estimated over $40 billion per annum. However, human upliftment and development measures are amongst the lowest in the world. Strangely, a large majority of Nigeria’s population experience severe poverty. Nigeria is a relatively stable country despite common religious and ethnic confrontations. Nigeria is a key strategic partner of the United States (Ploch, 2008).

The Niger Delta has played a significant role in the Nigerian and world economy due to the slave, palm oil and now oil trade for over 400 years. The Niger delta region is also commonly known as “Oil Rivers” because it was previously a large producer of palm oil. The Niger Delta expands over nine states and has an estimated population of 40 million. This area is interestedly made up of ten tribes and has more than two hundred and fifty dialects. This delta region was a producer of palm oil and fish before the commercial exploration of fossil fuels.

Sadly, it has been estimated by the Department of Petroleum, that over two million barrels of oil have been spilt since 1976. This totals over 4800 different incidents over twenty years. The consequences of these spills cannot be overstated and the Niger Delta terrain, fauna and forna have been gradually been destroyed and taking away the natural income of the communities. It is fact that more oil is spilled from the Niger Deltas pipes, network of terminals, pump stations and platforms each year than that that has been spilled or lost in the Gulf of Mexico, which is a site of huge ecological calamity created by oil that spewed from a leak caused by a explosion that destroyed BP's Deepwater Horizon (Guardian, 2013).

On November 10, 1995 Ken Saro Wiwa a activist and eight of his peers from a Movement for the Survival of the Ogoni People (MOSOP), were executed. The accused of the travesty were the Nigerian military and Shell. Kristen...

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