Friday, May 7, 2010

#8 Shell unable to meet target oil production.



According to an article by Jon Gambrell of The Associated Press, a major Royal Dutch Shell pipeline suffered from a fire supposedly started by "thieves" on 5/7/10. The fire damage along with numerous leaks along Shell's subsidiary Trans-Niger pipeline has forced Royal Dutch Shell to declare "Force Majeure" or "A major event that prevents one or both parties from fulfilling their obligations under the contract agreed upon".

This could be a considerable problem for Nigeria. Due to this recent attack Royal Dutch Shell has been considering its presence within Nigeria. Regardless of their 50 year-history together with Nigeria, Royal Dutch Shell has announced that "they can no longer depend on Nigeria as a profit-maker". If Shell , the dominant oil power in Nigeria, does indeed abandon Nigeria it could result in economic chaos and possibly in the inability of Nigeria to even consider democratization.

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