CHAPTER

FOUR

IMMPLICATIONS OF
PETROCHEMICAL INDUSTRIES

4.1 SOCIO-ECONOMIC IMPLICATIONS OF PETROLEUM

The petroleum industry has both positive and negative socio-economic implications. On the
positive side, the industry can create jobs and stimulate economic growth, particularly in
countries that are heavily dependent on oil exports. Additionally, revenue generated from the
sale of oil can be used to fund public services and infrastructure projects. On the negative side,
the industry can have negative environmental impacts, including pollution and greenhouse gas
emissions. Additionally, the concentration of wealth and power in the hands of a small number
of individuals and companies can lead to income inequality and political instability. Furthermore,
the over-dependence on oil can also lead to economic volatility, as the price of oil can fluctuate
dramatically.

Farmers in oil communities are forced to turn to other occupation due to the degradation of their land
by oil exploration activities. Farmers and fisher men who are unable to adjust usually migrate to nearby
urban centres in search of greener pastures. The implication of this movement is a worsen situation of
unemployment int these urban centres. Also, the social life and economic activities of inhabitants or
indigenes of these oil communities are greatly hampered as a result of harm caused during oil
mining/refining, transportation etc.

4.2 SOCIO-POLITICAL AND GEOGRAPHICAL IMPLICATIONS OF PETROCHEMICAL INDUSTRY

Exploitation, refining, storage, mining, processing and distribution of oil in a community has the
following effects or implication

1. Exploitation of human health

2. Exploitation of plants and aquatic animals
3. Exploitation of socio-cultural life
4. Exploitation through oil companies
5. Exploitation through Land Use Act
6. Noise and Air pollution
7. Violence
8. Criminality
9. Increased cost of living

4.2.1 EXPLOITATION OF HUMAN HEALTH:

The petrochemical industry can have a negative impact on human health due to the release of
pollutants and chemicals into the air, water, and soil. These pollutants can include volatile organic
compounds, particulate matter, and toxic heavy metals, which can harm the respiratory, neurological,
and reproductive systems of people living in nearby communities. Long-term exposure to these
pollutants can lead to a range of health problems, including respiratory diseases, cancer, and birth
defects.

The industry can also lead to environmental degradation and health problems for people living in nearby
communities, particularly if there are accidents or spills. These incidents can cause immediate harm to
people's health, as well as long-term environmental contamination that can continue to affect the
health of local residents for years to come.

Furthermore, the petrochemical industry has been known for its exploitation of marginalized
communities and workers, often located in low-income and communities of color, in the sense that they
are disproportionately affected by the negative impacts of the industry and have less access to resources
to mitigate those effects.

Overall, the health effects of the petrochemical industry can be severe, and steps should be taken to
minimize exposure to pollutants and chemicals, as well as to ensure that affected communities are able
to access the resources and support they need to mitigate the negative impacts of the industry.

4.2.2 EXP;LOITATION OF PLANT AND AQUATIC ANIMALS:

The petrochemical industry can have a negative impact on plants and aquatic animals due to the release
of pollutants and chemicals into the air, water, and soil. These pollutants can include volatile organic
compounds, particulate matter, and toxic heavy metals, which can harm the health of plants and aquatic
animals. Long-term exposure to these pollutants can lead to a range of health problems, including
reproductive failure, genetic mutations, and death.

Petrochemical plants and refineries can also cause habitat destruction and degradation, particularly for
aquatic animals, as they may discharge toxic chemicals and pollutants into nearby waterways, killing
fish, and other aquatic organisms. Oil spills are a well-known example of how these types of accidents
can cause widespread damage to aquatic ecosystems.

Additionally, the petrochemical industry has been known for its exploitation of natural resources, often
located in ecologically sensitive areas, where the negative impacts of the industry can be particularly
severe. These areas are often home to many plant and animal species that are unique to that region and
are not found anywhere else in the world, and the loss of these species can have a ripple effect
throughout the ecosystem.

4.2.3 EXPLOTATION OF SOCIO-CULTURAL LIFE:

The petrochemical industry can have a negative impact on socio-cultural life due to its potential to
disrupt traditional ways of life and displace communities. For example, the construction of
petrochemical plants and refineries can lead to the displacement of local residents, resulting in the loss
of homes, community ties, and cultural heritage. This displacement can be particularly devastating for
indigenous communities, who may have deep cultural and spiritual connections to the land.

The industry can also lead to the loss of traditional livelihoods, such as fishing and farming, and can
make it difficult for people to maintain their traditional ways of life. This can have a significant impact on
the social fabric of communities, as well as on the cultural heritage of the region.
Additionally, the petrochemical industry has been known for its exploitation of marginalized
communities, often located in low-income areas, communities of color and indigenous communities, in
the sense that they are disproportionately affected by the negative impacts of the industry and have less
access to resources to mitigate those effects. This can lead to a loss of cultural identity, as well as
economic and social marginalization.

4.2.4 EXPLOITATION THROUGH OIL COMPANIES:

Exploitation through oil companies can be an adverse effect of the petrochemical industry.
This can take many forms, such as the exploitation of natural resources, labor, or local
communities. For example, oil companies may extract resources from a region without providing
fair compensation to the local inhabitants, or they may engage in environmentally destructive
practices in order to extract resources. Additionally, the oil industry is often associated with
political corruption, which can further exacerbate the exploitation of local communities.

4.2.5 EXPLOITATION THROUGH LAND USE ACT:

The land use Act states that “ all lands belong to the federal government”. For every community
oil is found, it belongs to the federal government. This act is a very exploitative one and little or
no compensation are given members of these communities. This act gives out oil minning rights
to oil companies in the Niger Delta. Everythingg as to minning of Gold in certain other
communites in the northern state. Also, members of these community, due to thuis land use act
has lost every sense of participation in oil operations.

4.2.6 NOISE AND AIR POLLUTION:

Noise and air pollution are two adverse effects of the petrochemical industry. Noise pollution
can occur from the operation of heavy machinery and equipment used in the extraction,
processing and transportation of petrochemical products, which can be disruptive to local
communities and wildlife. Air pollution can be caused by the release of harmful chemicals and
particulates into the atmosphere from the processing and burning of petrochemical products,
which can have negative impacts on human health and the environment. These emissions can
include volatile organic compounds, nitrogen oxides, sulfur dioxide, and particulate matter,
which can cause respiratory problems and other health issues, as well as contribute to climate
change.

4.2.7 VIOLENCE:

Violence can be an adverse effect of the petrochemical industry in some cases. The industry can
lead to conflicts over resources and land, and can also exacerbate existing social and political
tensions. For example, in some countries, control over natural resources such as oil can be a
source of conflict between different ethnic or religious groups, or between the government and
local communities. Additionally, the industry can also lead to violence against workers and local
communities. For example, companies may use private security forces to protect their
 operations and these forces may use excessive force against local communities, leading to
human rights abuses.

4.2.8 CRIMINALITY:

Criminality can be an adverse effect of the petrochemical industry in some cases. The industry,
particularly the extraction and transportation of oil and gas, can attract criminal activity such as
theft, sabotage, and illegal tapping of pipelines. Additionally, the industry can also be associated
with corruption, which can lead to criminal activity such as bribery and embezzlement.
Furthermore, illegal activities such as illegal dumping of hazardous waste and illegal oil
bunkering, this activities carried out by criminal groups or individuals, can have severe
environmental impacts and health hazards to nearby communities. The industry can also attract
money laundering activities and other financial crimes, as the industry often generates large
amounts of money and has a high degree of opacity.

4.2.9 INCREASED COST OF LIVING

Increased cost of living can be an adverse effect of the petrochemical industry in some cases.
The industry can drive up prices for goods and services in areas where it operates, as it can lead
to an influx of workers and an increase in demand for housing, food, and other necessities.
Additionally, the industry can also lead to inflation, which can make it more difficult for local
residents to afford basic necessities. Furthermore, the cost of living could increase as a result of
environmental damage caused by the industry, such as water and air pollution, which can
increase the cost of healthcare and reduce property values. In some cases, the industry can also
lead to a loss of traditional livelihoods, such as farming or fishing, which can make it more
difficult for local residents to make a living and afford basic necessities.

4.3 PLANNING A PETROCHEMICAL INDUSTRY FOR A DEVELOPING COUNTRY

In order to plan a petrochemical industry for a developing country, several key

factors need to be considered. These include:

1. Access to raw materials: The country should have a reliable source of feedstock, such as
crude oil or natural gas, to support the industry.
2. Infrastructure: The country should have the necessary infrastructure in place to support
the industry, including transportation and energy infrastructure.
3. Market demand: There should be a sufficient demand for the products produced by the
petrochemical industry within the country and in the surrounding region.
4. Government support: The government should provide support for the industry,
including through investment in infrastructure, tax incentives, and other forms of
support.
5. Skilled workforce: The country should have a skilled workforce that is able to operate
and maintain the complex equipment used in the petrochemical industry.
6. Environmental and safety regulations: The country should have regulations in place to
protect the environment and ensure the safety of workers and the surrounding
community.
7. Partnership opportunities: Partnering with other companies or organizations can provide
access to expertise, technology, and markets that would otherwise be difficult to obtain.
8. Competitive landscape: It's important to understand the competitive landscape,
including the strengths and weaknesses of existing and potential competitors.
9. Economic and political stability: The country should have a stable economic and political
environment to ensure the industry's long-term success.
10. Community engagement: It's important to engage with the community and address any
concerns they may have about the industry, including its impact on the environment
and local residents.
11. Access to capital: The company should have access to adequate capital to finance the
project and support ongoing operations.
12. Legal and regulatory framework: The country should have a legal and regulatory
framework in place that supports the development and operation of the petrochemical
industry.

Overall, planning a petrochemical industry in a developing country requires a

comprehensive approach that considers all of these factors in order to ensure the
industry's long-term success and sustainability.