Journal of Management and Science
Vol. 14 No. 4 (2024): Vol 14, Iss 4, Year 2024
Articles

Analysis of demand and supply of industrial vessels for upstream oil and gas operations in Nigeria

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  • Theophilus Chinoyerem Nwokedi,
  • John Folayan Ojutalayo,
  • John Eru,
  • Righteousness Ofurumaz,
  • Chukwuebuka Osondu-Okoro
Theophilus Chinoyerem Nwokedi
Department of Maritime Technology & Logistics, School of Logistics and Innovation Technology, Federal University of Technology, Owerri, Nigeria
John Folayan Ojutalayo
Department of Nautical Science, Federal College of Oceanography and Fisheries, Lagos.
John Eru
Department of Maritime Transport, Nigerian Maritime University, Okerenkoko, Delta State
Righteousness Ofurumaz
Department of Maritime Technology & Logistics, School of Logistics and Innovation Technology, Federal University of Technology, Owerri, Nigeria.
Chukwuebuka Osondu-Okoro
Department of Maritime Technology & Logistics, School of Logistics and Innovation Technology, Federal University of Technology, Owerri, Nigeria.
Published December 24, 2024
Keywords
  • Offshore-sector, Industrial-vessels, Demand.
How to Cite
Theophilus Chinoyerem Nwokedi, John Folayan Ojutalayo, John Eru, Righteousness Ofurumaz, & Chukwuebuka Osondu-Okoro. (2024). Analysis of demand and supply of industrial vessels for upstream oil and gas operations in Nigeria. Journal of Management and Science, 14(4), 81-90. Retrieved from https://jmseleyon.com/index.php/jms/article/view/803

Abstract

This study investigated demand of offshore Supply Vessels (OSVs) by midstream Oil and Gas (O&G) operators in Nigeria. The specific objective of the study was among other things, to estimate the coefficient of elasticity of offshore industrial vessel demand and supply in Nigeria upstream O&G sector relative to variations in crude oil production capacity in Nigeria’s oil fields, number of operational oil wells, vessel spot market rates and per barrel oil prices. Data on OSV demand and supply, crude oil prices, oil production levels and operational oil wells were obtained from the Department of Petroleum Resources. The log-log constant elasticity model was used to analyze the data obtained. It was found that, a 1% increase in number of operational oil-wells (Wc) led to a 0.22% increase in the demand for industrial vessels for offshore O&G operations in Nigeria while a 1% increase in industrial vessel charter rates led to a 0.356% decrease in demand for industrial vessels in the offshore O&G sector in Nigeria. For each 1% increase in crude oil prices, demand for industrial vessels to service the transportation need of the Nigerian O&G sector increased by 0.477%. Recommendations were proffered on the basis of the research findings.

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