Famfa Oil Ltd is oil depletion a good thing Essay

Famfa Oil Ltd is oil depletion a good thing - Essay Example In such a way, the author will discuss four of the following environmental drawbacks that oil drilling within Nigeria, and elsewhere throughout the world for that matter, necessarily poses: the disruption in aquatic and sea life that the high level of noise generated by such a process necessarily entails, the level of habitat destruction that oil drilling causes, the environmental impacts and risks that oil spills pose, and the somewhat unregulated and oftentimes sloppy means by which third-party oil extraction companies often engage in such a process. Similarly, the analysis will also discuss what this author deems to be at least one overall benefit that oil drilling necessarily poses for the environment, the creation of man-made reefs on the ocean floor, as well as the issue of domestic oil ownership. By waiting each of these determinants, the analysis will also seek to determine whether or not, regardless of the economic benefits with such a process necessarily entails, the comple te exhaustion of hydrocarbon resources around the globe would be a benefit for the environment and by extension mankind as a whole. Background history: As compared to the multinational conglomerates of Chevron, Shell, BP, and others, FAMFA Oil is a relatively newcomer to the world of oil and gas exploration. Additionally, whereas many of the other firms which it previously been specified Tens of thousands of oilfield leases throughout the entire globe, FAMFA Oil operates specifically within its own nation of origin; Nigeria. This helps to set FAMFA Oil apart from many of its competitors do not only to its relatively recent entry into the world of oil drilling and exploration, but also sets it apart as Nigeria’s only domestically operated oil exploration and extraction entity. FAMFA Oil was originally founded in 1993. Soon thereafter, it began exploration of potential oil fields directly off the coast of Nigeria in what is now termed as the Guinea shelf. Soon thereafter, in 19 98, the Agbami field was discovered. This represented one of the first new hydrocarbon deposits discovered within recent history. Granted a leasehold right to over one half million acres of this oilfield in the late 1990s, FAMFA Oil soon became a dominant player sharing remainder of the oilfield with the likes of Texaco, Chevron, and a litany of other subsidiaries. Besides being one of the first oil companies operate within this oil-rich region, FAMFA Oil also had the additional benefit of extracting a very high quality crude that is been defined by many spectators as light, sweet, and low in sulfur content. Naturally, the overall level of oil that is exhibited within this particular field, and other fields in and around Nigeria necessarily means that a higher profit margin exists for this firm due to the fact that the crude oil extracted from these regions is of a higher value and needs less refinement prior to being turned into usable petroleum resources. Environmental Issues and Concerns: Firstly, from the interview which was conducted, it became clear that the CEO of FAMFA Oil was keenly aware of the overall risks related to noise pollution that oil drilling necessarily entails. Whereas environmentalists and society in general for that matter, are keenly aware of the risks of oil spills that necessarily result from oil extraction and exploitation around quote, few are aware of the fact that one of the secondary or tertiary