Nigeria a new target for RFID

Nigeria, in Western Africa is lucky and unlucky at the same time. The country is rich in its natural resources, especially oil and gas, however, it is poor concerning the environmental effects of the drilling and the low profit of the business. Nigeria suffers from the environmental perils of oil extraction. Villagers draw their water directly from the same rivers and streams that become catch basins for oil spills.  Between 1989 and 2000, more than 536,000 barrels of oil were spilled; only 23,000 barrels were recovered. Worse case that the land and river restoration are rare. Furthermore, gas flaring is the cheapest way to eliminate natural gas which is a byproduct of oil extraction.  These flares contribute to climate change and cause of acid rain in the region.

According to the Ango-Dutch oil group, Schell approximately 100,000 barrels of crude oil are being stolen or smuggled from Nigeria every day,counting 5 per cent of national production. The theft of oil in Nigeria, Africa’s largest oil-producing country, may have peaked at more barrels. Today’s theft price is estimated at $40 for a barrel which equates to between $300 million and $1.6 billion a year. Nigeria has proven reserves of 36 billion barrels – the seventh highest in the world – but the industry has been wracked by violence, corruption and crime, particularly across the volatile Niger Delta region. To monitor and stop these troubles RFID technology would be an useful tool.

The process of stealing crude oil involves boring holes in the thousands of miles of pipelines that situated in the Delta and inserting valves. To add the above mentioned practice is highly risky that often results in explosions and deaths. The curde oil is also stolen by organised criminals who steal directly from the wellhead. Stolen Nigerian crude is usually exported by barge for refining in other parts of West Africa. There is also evidence that it is shipped as far afield as Brazil and Eastern Europe.

Source: http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article5776150.ece