GLOBAL OIL

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Nigeria is a major oil producer and exporter and has the 10th largest proven reserves in the world. But because of corruption, a decrepit oil infrastructure, and constant civil warfare in the Niger Delta, production is never at 100%.

Petroleum has severely distorted the Nigerian economy, bringing in 98% of export and 83% of government revenues. Unequally distributed oil wealth, severe environmental damage, and agricultural and industrial neglect have generated widespread rural poverty and mass migrations to the cities.

The vast Niger River Delta fields (34 billion barrels) contain almost all of Nigeria's oil reserves. But production is hampered by poor relations between global oil companies and the local communities. Infrastructure vandalism, strife and kidnapping of oil personnel continues.

Production is often cut by as much as 20%, helping to drive up world prices.

In the absence of government programs, the multinational oil companies have initiated their own local development efforts.