Publication Type: 
Research on the EITI
Published Date: 
August, 2017

Improving the capacity of institutions to strengthen the management of national oil and gas resources

Abstract: Proper management of measurement activities in the oil and gas industry by the designated bodies is a challenge in most parts of the world, particularly the upstream sector of the industry. This is evident as the problem cuts across both developed (U.S.A) and the developing (Nigeria) countries. In United States, the Government Accountability Office (GAO) said, “The Department of the Interior’s oil and gas production verification efforts do not provide reasonable assurance of accurate measurement of production volumes” while in Nigeria, The Nigeria Extractive Industries Transparency Initiative (NEITI) said that the Department of Petroleum Resources has no system for measuring crude oil production. This paper thus reviews the key causes of and the recommended solutions to this problem. While there are several challenges hindering effective measurement verification practices relatives to national oil and gas management, and several recommended solutions, this paper portrays building the capacity of the designated bodies through provision of appropriate training as the key solution to the problems.