Energy Economics of Midstream and Downstream Petroleum Sectors in Nigeria: A Review of Potential Optimizations

Abstract

Abstract The energy economics of the midstream and downstream petroleum sectors in Nigeria are important due to the country's reliance on crude oil and gas production and its role in the global energy landscape. This paper presents a comprehensive review of the potential optimizations in energy economics within Nigeria's midstream and downstream petroleum sectors. It explores the current state of these sectors, highlighting the inefficiencies and opportunities, and goes further to discuss the economic implications of these inefficiencies, emphasizing the need for optimization. Potential optimization strategies are then proposed, focusing on technological advancements, policy reforms, and infrastructural improvements. The paper underscores the role of renewable energy integration and digital transformation in enhancing energy efficiency. The economic benefits of these optimizations such as cost savings, increased profitability, and improved competitiveness are analyzed. The paper concludes by emphasizing the urgency of implementing these optimizations, considering Nigeria's energy demands and the global shift towards sustainable energy practices. In conclusion, this review paper provides valuable insights for policymakers, industry stakeholders, and researchers interested in energy economics and sustainability in Nigeria's midstream and downstream energy sectors. It serves as a guide for future research and policy formulation to optimize Nigeria's petroleum sectors for economic growth and sustainability.