Test: Natural Resources and the Nigerian Economy - 3 - JAMB MCQ

Upstream activities in the oil sector involve exploration and production. This includes activities such as locating and drilling oil wells, extracting crude oil from reservoirs, and conducting initial processing before transportation. Upstream activities are focused on the early stages of the oil supply chain, primarily involved in finding and extracting oil.

Downstream activities in the oil sector refer to refining and processing. This includes converting crude oil into various petroleum products such as gasoline, diesel, jet fuel, and lubricants. Downstream activities also involve the distribution and marketing of these refined products to end-users, such as gas stations and industrial consumers.

NNPC is primarily responsible for overseeing oil exploration and production in Nigeria. It is the state oil corporation in Nigeria and plays a crucial role in managing the country's oil and gas resources, including exploration, production, and ensuring a steady supply of petroleum products within the country.

OPEC aims to promote cooperation among oil-producing countries. It is an intergovernmental organization consisting of major oil-producing nations. OPEC's primary goal is to coordinate and unify petroleum policies among its member countries to ensure stable oil markets, safeguard their interests, and provide a steady income for member nations.

Environmental degradation is a major challenge facing natural resource exploitation. The extraction and utilization of natural resources often lead to negative environmental impacts, such as deforestation, habitat destruction, pollution, and climate change. These issues highlight the importance of sustainable resource management practices.

Promote sustainable development practices. To control the effects of natural resource exploitation, it is crucial to prioritize sustainable practices that consider long-term environmental, social, and economic impacts. This involves implementing responsible extraction methods, minimizing environmental damage, and ensuring equitable distribution of benefits among stakeholders.

Upstream activities in the oil sector involve exploration and production of crude oil. This includes activities such as surveying potential oil fields, drilling wells, extracting crude oil from reservoirs, and conducting initial processing before transportation. Upstream activities are focused on the early stages of the oil supply chain.

Downstream activities in the oil sector include transportation and distribution of petroleum products. This involves transporting refined petroleum products, such as gasoline, diesel, and jet fuel, from refineries to various end-users, including gas stations, airports, and industrial consumers. Downstream activities also encompass marketing and sales of these products.

The primary objective of NNPC is to ensure a reliable supply of petroleum products in Nigeria. NNPC plays a vital role in managing Nigeria's oil and gas resources to meet domestic demand and maintain stability in the availability of petroleum products within the country.

OPEC aims to stabilize oil prices by restricting oil production during times of low prices. When oil prices fall, OPEC member countries often agree to reduce their production levels collectively. By limiting supply, OPEC seeks to reduce the oversupply in the market and maintain more stable and higher oil prices.