The Prospects and Challenges of Shale Oil Exploration in Nigeria

Abstract Nigeria is one of the largest pproducers of oil and gas in Africa, 10th in the world and possesses vast reserves; but with continuous increase in population and demand for petroleum and petroleum products, the conventional hydrocarbon reserves are being rapidly utilized, it is feared that the demand for conventional oil will exceed supply in the nearest future. Nigeria is also a major exporter of the conventional oil and its products to the United States of America, but with the recent discovery, demand and relevance of shale oil in the world market especially by the U.S government, there has been a decline in the demand cum prize of crude oil, which has affected Nigeria since her income and revenue largely depends on it. Nigeria has vast reserves of shale oil deposits in Benue, Abakaliki, Borno, Adamawa, Imo, Abia, Calabar, and other south-east and north-eastern parts of the country. Hence, this review includes the formation of petroleum, shale oil, characteristics, global shale oil exploration, comparison of petroleum and shale oil, and the prospects and challenges of shale oil exploration. In conclusion, Nigeria should be encouraged to invest in the relatively neglected shale oil as a potential alternative source of energy, thereby increasing the nation’s oil reserves and diversifying of energy sources. Keywords: Prospects, Challenges, Shale oil and Exploration