section_path: Economy/Oil and natural gas
section_name: Oil and natural gas
paragraph_text: Oil and natural gas
  
  Nigeria is the 15th largest producer of petroleum in the world, the 6th largest exporter, and has the 9th largest proven reserves. Petroleum plays a large role in the Nigerian economy and politics, accounting for about 80% of government earnings. Nigeria also has the 9th largest proven natural gas reserves estimated by OPEC; the government's value of its about 206.53 trillion cubic feet has been valued at $803.4 trillion. Natural gas is seen as having the potential to unlock an economic miracle on the Niger River. Nigeria each year loses to gas flaring an estimate of US$2.5 billion, and over 120,000 barrels of oil per day to crude theft in the Niger Delta, its main oil-producing region. This has led to piracy and conflict for control in the region and has led to disruptions in production preventing the country from meeting its OPEC quota and exporting petroleum at full capability.
  
  Nigeria has a total of 159 oil fields and 1,481 wells in operation according to the Department of Petroleum Resources. The most productive region of the nation is the coastal Niger Delta Basin in the Niger Delta or "south-south" region which encompasses 78 of the 159 oil fields. Most of Nigeria's oil fields are small and scattered, and as of 1990, these small fields accounted for 62.1% of all Nigerian production. This contrasts with the sixteen largest fields which produced 37.9% of Nigeria's petroleum at that time. Petrol was Nigeria's main import commodity until 2021, accounting for 24% of import volume.
  
  The Niger Delta Nembe Creek oil field was discovered in 1973 and produces from middle Miocene deltaic sandstone - shale in an anticline structural trap at a depth of 2 to 4 kilometres (7,000 to 13,000 feet). In June 2013, Shell announced a strategic review of its operations in Nigeria, hinting that assets could be divested. While many international oil companies have operated there for decades, by 2014 most were making moves to divest their interests, citing a range of issues including oil theft. In August 2014, Shell said it was finalising its interests in four Nigerian oil fields.
  
  The supply of natural gas to Europe, threatened by the Russian invasion of Ukraine, is pushing projects to transport Nigerian natural gas via pipelines to Morocco or Algeria. As of May 2022, however, there are no results on this yet.