An Econometric Study Of Tanker Shipping Services In Nigeria

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ABSTRACT

This research work titled „‟An Econometric Study of tanker Shipping services in Nigeria‟‟ aimed at examining the demand for tanker shipping services with the resultant crude oil to be exported from Nigeria to other parts of the world using a time series regression approach and correlations. The objective is to ascertain whether the demand for tanker vessels (tonnage) corresponds with the resultant volume of the crude oil available at oil terminal to be exported. Our findings using time series regression (Ordinary least square) approach with the trend equations(Yt = -31483.776 + 16.10t,Yt = -15071.381 + 7.91t,and Y = 497.1 + 0.232X1 + 1.259E-006X2 + e) and correlation shows that there is a correlation between the volumes of crude oil export and the capacity(tonnage) of crude oil tankers,change in the number of crude oil vessels that lift oil from Nigeria and the volume of crude oil production over the years in view, and there will be more number of crude oil vessels required to export crude oil if productioncontinues to increase. Finally, recommendations were made which includes: encouragement of local participations, check of ugly trends (such as the activities of the restiveness of Niger-Delta Youths, sabotage from the government juggernauts), liberalization in the oil sector, more investment in the oil industry and re-orientation of both the government and individuals. Based on the findings, we conclude that if increase in crude oil production persists; demand for tanker shipping services will increase because its demand depends on crude oil availability (derived demand).

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An Econometric Study Of Tanker Shipping Services In Nigeria

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