Deep Dive Analysis: Petroleum Marketing and Distribution in Nigeria

This dissertation delves into the significant challenges impacting the marketing and distribution of petroleum products within Nigeria, with a specific focus on Capital Oil plc. The study meticulously examines the various issues hindering the performance of oil and gas companies in Nigeria, highlighting the crucial role of the petroleum industry in the nation's economic development. It identifies key players, including refineries and petrol stations, and their contributions to the market. The research investigates the challenges in distribution networks, inefficient management, and market dynamics. The dissertation employs a thorough methodology, including literature reviews, research design, and data analysis. Findings reveal significant transportation issues, inadequate petrol station infrastructure, and ineffective distribution channels. The study concludes with recommendations for improving marketing and distribution strategies, suggesting ways to enhance performance within the Nigerian petroleum sector, and offers insights for further academic research on the subject.

DISSERTATION
(Deep Dive Analysis of the challenges of marketing and distribution of
petroleum products in Nigeria)

ABSTRACT
From the past few years oil and gas companies of Nigeria is facing huge issues related to
marketing and distribution. Petroleum industry is the key sector and contributes well in economic
development of the nation. Present study examines different issues that are responsible for poor
performance of distribution and marketing activities of oil and gas companies in Nigeria.
Furthermore, it focuses on major players of this industry those who impact on the overall
working of oil and gas companies. Contribution of refineries and petrol stations is described in
the dissertation. Nigerian petroleum industry is facing enormous problems that impacts on
distribution and marketing activities of the companies. Present study addresses all these issues
and give suggestion to minimize these factors so that effective improvement can be occurred in
this sector.

ACKNOWLEDGEMENT
After an intensive work today is the day I want to thank some most important persons
those who have contributed well and supported me in finishing my work in effective manner. I
like to thank my colleagues, they were always willing to help me. I like to thank my seniors and
tutors for their valuable guidance. I like to thank my parents for their sympathetic ear. Finally my
friends those who have encouraged me and stood next to me when I was feeling troubled. Their
positive behaviour for me has helped me in completing this dissertation on time.

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
Background of the study.........................................................................................................1
Aim and Objective..................................................................................................................2
Research Questions................................................................................................................2
Rationale.................................................................................................................................2
Significance of the study........................................................................................................3
Research Plan.........................................................................................................................3
Chapter structure....................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
Introduction............................................................................................................................5
Number of players of petroleum industry and their contribution...........................................5
Marketing and distribution challenges faced by petroleum industry of Nigeria....................7
Methods to address the issues.................................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................13
Introduction..........................................................................................................................13
Research philosophy.............................................................................................................13
Research design....................................................................................................................14
Research approach................................................................................................................14
Research Strategy.................................................................................................................15
Data Collection.....................................................................................................................15
Sampling...............................................................................................................................16
Data Analysis........................................................................................................................17
Ethical consideration............................................................................................................17
CHAPTER 5: FINDINGS AND DISCUSSION...........................................................................19
Introduction..........................................................................................................................19
Finding..................................................................................................................................19
Discussion.............................................................................................................................28
CHAPTER 6: CONCLUSION AND RECOMMENDATION.....................................................30
Conclusion............................................................................................................................30
Recommendation..................................................................................................................32

REFLECTIVE................................................................................................................................33
REFERENCES..............................................................................................................................34

CHAPTER 1: INTRODUCTION
Background of the study
Economy condition matters a lot for every developing and developed country. Each of
the developing nation pays more attention on economy growth. Government of the country
always focus upon improving infrastructure and per capita income of the population (Radnejad,
Vredenburg and Woiceshyn, 2017). . Petroleum industry contributes well in the economic
development of nation. Nigerian economy is considered as an underdeveloped country. Nigeria
vision of 20:2020 has set direction for improving condition of the region. Oil and gas sector is
considered to be the major contributor towards economic growth of the nation (Mehrotra, 2017).
Now-a-days; this sector is facing huge issues such as inefficiency in management of different
resources and poor facilities. In addition to this, changes in oil prices, inadequacy of distribution
network are the major challenges faced by petroleum industry of Nigeria.
As per the report of National Bureau of statistics (NBS); it is found that export of crude
oil in the first nine months of 2016 has been decreased by 13.51%. It has badly affected the
economic condition of the region. Poor marketing distribution activities create big trouble for the
Nigerian petroleum companies (Effiong, 2014). Government is supporting the private sector
through privatization and commercialization; so that export of oil and gas can be increased to
improve condition of the region. This support of higher authorities have created positive situation
for the economy of Nigeria. I Independent marketers have been increased by 20 to 7900 in
number from 1979 to 2012. However, this sector is still facing huge issues such as high reliance
on exports, inefficient transportation networks & high expenses (Konyimbih, Mbura and Paul,
2017).
The present dissertation is based on the Capital Oil plc; which is petroleum marketing
firm based in Nigeria. Its’ main aim is to supply quality products to people and improve
distribution networks of the petroleum products. The research work throws light on different
factors that are responsible for poor performance of petroleum companies in Nigeria due to
various issues in distribution and marketing activities. . Furthermore, the study is going to bring
forth main players of petroleum industry in Nigeria (Sayne, Gillies and Katsouris, 2015). In
addition, contribution of refineries and petrol stations of Nigeria is explained in order to address
issues that exist in the marketplace (Adekola, J. and et.al, 2017).
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Aim and Objective
Aim
“To investigate different issues that are responsible for poor performance of distribution and
marketing activities of petroleum companies in Nigeria: A study on Capital Oil plc”.
Objectives
 To identify number of players operating in petroleum industry of Nigeria.
 To analyse contribution of refineries and petrol stations of Nigeria in order to address
issues in the market.
 To investigate marketing and distribution challenges for Capital Oil plc in Nigeria which
are responsible for its poor performance.
 To suggest ways to minimize poor performance of distribution and marketing activities of
Capital Oil plc.
Research Questions
 Who are major players operating within petroleum industry of Nigeria?
 Explain contribution of refineries and petrol stations of Nigeria in order to address issues
in the marketplace?
 What marketing and distribution challenges faced by Capital Oil plc in Nigeria?
 What are the ways to minimize poor performance of distribution and marketing activities
of Capital Oil plc?
Rationale
Petroleum industry is highly complex, prices of oil and gas changes frequently. It creates
huge pressure on the petroleum companies; because continuous change in price hampers smooth
business operations. . Nigeria is underdeveloped nation, petroleum firms of the cited country are
facing challenges related to distribution and marketing of products (Radnejad, Vredenburg and
Woiceshyn, 2017). Due to inefficient distribution networks; revenue earned through export of
oil is decreasing to a great extent. It badly impacts on the economy condition of the country. It is
essential to know root cause of poor performance of transportation networks and ineffective
marketing activities so that concern authorities can make necessary changes in the policy and
practices. This is the only way that can improve economy condition of the Nigeria and can help
the nation in becoming developed region. The main reason of conducting this investigation is to
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understand issues and find ways that may be applied to improve performance of this sector (Van
Halderen, M.D., and et.al., 2016).
Significance of the study
With the help of this dissertation researcher will be able to identify root cause of issues of
distribution and marketing activities in the petroleum sector. By this way individual will be able
to give proper recommendation that would be beneficial in improving performance of oil and gas
companies (Kettlitz and et.al, 2016). This study will also be helpful for improvement in export
rates in the nation that will be beneficial in improving economic rates of the country . Thus,
revenues and foreign currency will be increased in the country which will help in its
development. This investigation will also be beneficial for other scholars because they will get
idea of this sector that will support them in conducting further studies on the same subject matter
(An assessment of the distribution of Petroleum products in Nigeria, 2012).
Research Plan
Activities 1th
Week
2nd
Week
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
Week
Selection of
research topic,
framing of aims
and objectives
Review
Literatures of
other authors on
the same topic
Selection of
Appropriate tool
of Research
methodology
Completion of
proposal
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Collection of
data
Recording
research and
carrying out the
same
Analysis of data
Discussion and
conclusion
Editing and final
submission
Chapter structure
Chapter 1: Introduction: It would be first part of the study in which scholar will discuss
background of petroleum companies of Nigeria. Furthermore, issues faced by these firms and
rationale of conducting the investigation will be discussed in this study.
Chapter 2: Literature Review: After the introduction part, scholar will review the literature of
other authors. It will support in developing understanding about different issues related to
distribution and marketing activities in the petroleum companies of Nigeria.
Chapter 3: Research Methodology: It will be the third part of the study in which scholar will
discuss various tools and techniques that can support in gathering in-depth information about the
topic and getting optimistic results.
Chapter 4: Discussion and findings: It would be next chapter in which researcher will analyse
the data and will interpret information. Findings will be described in this session so that in the
next chapter researcher can summarised the topic.
Chapter 5: Conclusion and recommendation: it would be last chapter, researcher will
summarize information in this part and will give necessary recommendations that will help in
improving the condition of petroleum industry of Nigeria.
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CHAPTER 2: LITERATURE REVIEW
Introduction
Literature review is considered as one of the most important part of dissertation. It
supports in gaining in-depth information about the topic by reviewing other researcher's
literatures on the same topic.
Number of players of petroleum industry and their contribution
According to Radnejad, Vredenburg and Woiceshyn (2017), petroleum industry of
Nigeria highly contributes in the economy development of the nation. In the year of 2016 9%
contribution has been done by the oil and gas companies of Nigeria. Mehrotra, (2017), stated that
petroleum industry contribute well in the economy development of the nation. It is the sector that
supports in foreign exchange earnings. Major foreign exchange is generated from crude oil
exports. This contribution has increased revenues of government. Income generated by
petroleum profit tax helps the government in development of the nation. Oil refinery is an
industrial process plan where oil and gas companies processed the crude oil and refined it into
the useful products. Van Halderen, M.D. and et.al. (2016), argued that refineries contributes well
in re-busting the petroleum industry. It helps the Nigerian country in continuously growing,
moving and thriving (Mohammed and et.al, 2014.). Refining industry plays significant role by
providing companies vital products. These are the main suppliers of transportation fuels thus,
play role of facilitating mobility. Refineries help in providing gasoline, fuel oil for maritime
transport. It is the sector which helps in fulfilling the energy needs of Nigeria.
During the year of 2011 & 2012; petroleum sector of Nigeria has altered the situation of
the territorial division, exports earning have been increased by 95% and 58% government
revenues have been raised due to effective working of oil and gas companies
Kettlitz and et.al. (2016), refineries not only supports in increasing export of oil and gas
products but also helps in increasing job opportunities in the nation. This refinery industry
fosters apprenticeship programs which assist in the development of nation and meeting with the
energy needs of Nigeria. Refiners provide resilient and flexible infrastructure system to the
nation. Adekola and et.al. (2017), argued that in recent era refining capacity are changing
frequently at international level. Increasing energy needs has forced to upgrade refining capacity
to great extent. Refiners has strength to have strong export orientation but due to poor local
deman Negieria is still lacking in meeting with its objectives (Ibe and et.al, 2015).
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Illustration 1: Changes in refining capacity
Source: (Oil and petroleum products - a statistical overview, 2017)
As per the view of Adekola and et.al. (2017), oil refineries are large industrial complexes,
it has extensive piping. It is used as technological tools or type of chemical plants which supports
in producing quality oil and gas products such as petrol, diesel fuel etc. It is fact the unprocessed
crude oil is harmful in industrial applications. Refiners are big plants which process thousands of
barrels of crude oil in a single day. It has high capacity hat supports the petroleum industry in
minimizing operational risk and improving quality of the oil products.
Van Halderen, M.D. and et.al. (2016), stated that oil refineries are major contributor in
the petroleum industry of Nigeria, it helps in producing intermediate products such as light
hydrocarbons, pyrolysis gasoline, hydrogen etc. These products are not directly transported but
processed further on-site. On other hand Kettlitz and et.al (2016), argued that Nigeria has limited
resources that is why refineries are unable to perform their work effectively. In the process these
refiners utilize half of oil reserves that create big trouble for the organization. As per the view of
Mehrotra, (2017) extracting and burning petroleum increase chances of environmental pollution
and create consequences of global warming.
As per the view of Adekola, J. and et.al. (2017) increasing prices of oil impact on the
Nigeria's economic growth to great extent. In the year of 2005 economy has grown by 4.5% due
to high contribution of petroleum industry. It is expected to grow by 6.2% by the end of 2006.
Nigeria is considered on largest producer of crude oil in entire world (Nigerian national
6

petroleum corporation, NNPC, annual statistics bulletin 2013 highlights, 2014). Recently
pipeline vandalism has been increased in the Nigeria. Production of oil has progressively rising
in the country from 5100 bopd to 2.2 million bopd between 1956 to 1958. Nigerian National
Petroleum corporation has declared its report about the statistical performance of the petroleum
industry (Rasli and et.al, 2014). NNPC report states that 2.31 million barrels of crude oil were
lost which was worth of N38.992. 34 fire accidents occur in the same time period. The local
refineries have received 36.193 million barrels which was 4.918 million MT of total dry crude
oil. In the year combines average refining capacity utilization was 22% where in the 2012 it was
21% Adekola, J. and et.al. (2017).
According to Adekola, J. and et.al. (2017), petrol stations are major players in the
country. These petrol stations are registered and are scattered in major cities in Nigeria. It helps
in fulfilling the petrol needs of the local consumers and helps in making the transportation easier.
Petrol station industry contributes well in the petroleum industry it sells products such as diesel,
alternative fuels to consumers. It increases cash flow in the nation and this amount is further used
in the economy development of the nation. Oil industry of the Nigeria is divided into two major
sections; upstream and downstream. Upstream activity is related with the production and
exploration of crude oil. On other hand downstream in related with the transportation, refining of
oil and gas products. Nigeria does not have sufficient oil reserves in the nation that is why
approx. 60% crude oil is imported by the entity in the nation.
Marketing and distribution challenges faced by petroleum industry of Nigeria
According to Van Halderen, M.D. and et.al. (2016), petroleum industry contributes well
in the economic development of the nation. This industry is facing several issues. The major
issue face by the entity is low capacity utilization. Oil and gas firms of Nigeria are unable to
utilize resources effectively. That is the reason that, it is getting poor outcome. Nigeria is having
limited oil reserves that is why it has become essential for the country to use effectively the
natural resources so that revenues of the nation can be increased. Mehrotra (2017), argued that
management inefficiency is major drawback in the petroleum industry. Marketing and
distribution is required sound monitoring and effective controlling. But due to poor management
companies are unable to run their operations efficiently. Global forces such as political pressure
is creating huge trouble on this petroleum industry. Manages have to make appropriate efforts in
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order to reach frequently on the radical changes in fuel prices and transportation procedures.
That may support in improving the condition of this sector.
As per the view of Radnejad, Vredenburg and Woiceshyn (2017), one of the major issue
faced by the petroleum industry is increasing production of liquid fuels. Now-a-days Nigeria is
facing shortage of liquid fuel in the nation. In such condition it has become very difficult for the
country to meet with the demand. It is highly required to increase upstream sector production so
that this issue can be minimized soon. Radnejad, Vredenburg and Woiceshyn (2017), stated that
management does not have proper knowledge about refineries, pipelines that are creating
challenges for the oil and gas companies. That is why they are unable to perform better and
contribute in the development of the nation. As per the view of Mehrotra (2017), petroleum
industry of Nigeria is adversely affected by the inefficient state control on prices. Price is the
major factor that influence overall working of the country. It is the major issue which influence
the condition of the country to great extent. Changes in price increases the burden on the oil and
gas companies because all of sudden they have to change their operations. State is unable make
control over increasing fuel prices. That is the reason that oil and gas companies are unable to
meet with the demand. This creates distribution issue among these firms and they fail to
accomplish their objectives.
According to Mehrotra (2017), argued that one of the major issue in relation to this
context is that product pricing is one of most sensitive issue. The price can be hike at any time in
future market. This term price of the petroleum product is been increased by some part of
amount which has largely impacted the growth of market. The certain changes in price of the
petroleum gas can affect the operation of firm sometimes it may lead to decrease the efficiency
of productivity and profitability of firm. The demand and supply factor of the commodity also
influence in the great extent. The sales value of business in this manner the growth of business
cannot be same for longer period. As per the view of Radnejad, Vredenburg and Woiceshyn
(2017), the another major drawback is in relation to the issues of inefficient regulation and
control of government. This effect the working culture in large extent. If government work in
manner to not to framing of policies in inefficient way than business cannot run his oppression if
expert manner. The policies and procedure are to framed positively so business can perform the
activity in orderly way. With the help of right kind of legislation business can earn large amount
of productivity. Timely changes in policies and procedures leads to have smooth flow of
8

functioning of business. If there I any loophole in framing of business policies then oppression of
business can be affected and profitability of the company can be nil. Adequacy in the distribution
network is considered as one of the major issues faced by petroleum industry of Nigeria.
Van Halderen, M.D., and et.al. (2016), argued that inadequacy in the distribution network
is considered as one of the major issues faced by petroleum industry of Nigeria. The distribution
of oil and gas products are done by multinational and indigenous private firms such as Agip,
African petroleum firm etc. Government is trying to hard to minimize uneven distribution of
petroleum products. But still is has become the major challenge for the petroleum industry of
Nigeria. Inadequate distribution network has become threat to the marketing of petroleum
products in the nation. That is why government is unable to earn high profit through this business
(Oil and petroleum products - a statistical overview, 2017). This problem has increased number
of independent marketers in the Nigeria. This issue creates situation of inadequacy in distribution
of petroleum products.
Illustration 2: Physical flow of petroleum products by independent marketers in Nigeria
Source: (Japhet, 2017)
As per the view of Radnejad, Vredenburg and Woiceshyn (2017), marketing and
distribution of petroleum products are generally undertaken by the private sector. Now-a-days
downstream activities are undertaken by the private organizations. Major issue faced by the oil
and gas companies of Nigeria is that it is highly reliance on imports (Soile and Mu, 2015).
9

Nation does not have sufficient oil reserves thus, it has to import the raw material from other
countries. That increases price of the oil and gas products thus, impact on the distribution as
well. Adekola, J. and et.al. (2017), argued that available transportation sources are insufficient
and relatively expenses. It is fact that when oil and gas companies market their products and use
transportation networks then due to high expenses they fail to run their business effectively.
Pipeline is generally avoided due to vandalism. This situation creates when rail and other
transportation mediums does not function properly. Nigeria is underdeveloped nation, there is
limited economic and non-economic resources. Nation has limited transportation medium thus,
distribution of petroleum products are quite difficult for the country.
Methods to address the issues
According to Ama, Nwajei and Agbaire, (2017) visual inspection is the great technique
that supports in detecting the flaws in the marketing and distribution activities. It is considered as
inexpensive method which assists in addressing issues in the petroleum companies of Nigeria. A
trained technician can find out the issues in the installation procedures so that distribution issues
can be minimized in the company. Aniche, (2017) argued that transportation and distribution are
two major part of petroleum industry. Offshore and onshore pipelines are two major risk on
distribution activities. But to address these hazardous activities companies are required to take
safety measures so that it can identify risk on time. That supports in minimizing risk of
distribution activities in the oil and gas companies. Distribution risk can increase burden on the
entity this can be addressed through spreadsheets. With the help of spreadsheet companies can
quickly generate graphs of each activity. It is the method that supports in analysing prospects and
detect uncertainty in the oil and gas industry.
As per the view of Japhet, (2017) Monte Carlo simulation method is considered as one of
the effective method which is employed by most of oil and gas firms in Nigeria. This technique
evaluates the problems on the bases of this companies set assumptions. This technique supports
in identifying the hazard and take necessary action to avoid it. Igbinovia, (2014) stated that
distribution risk arise due to low involvement of channel members. Employees are backbone of
firms if they are not motivated then they will not perform their duties well. It is the major reason
that risk arise in the petroleum industry. Oil and gas firms can motivate its channel members that
will help in making them loyal towards the brand. By this way they will closely monitor
distribution activities and will work on reducing the risk of distribution and marketing. Skilled
10

channel members put their hard efforts to measure and monitor the activities of the company.
They contribute well in increasing profit and productivity of the entity to great extent.
Oluoti and et.al, (2014) argued that gasoline which is used to pump cars are in light
brown or colourless. This different is occurred due to changes in refining process. Refineries are
the key players that supports in getting oil in the market and fulfilling the energy demand in
entire world. Petroleum transmission pipelines considered as primary method for transporting
crude in Nigeria. Refineries takes support of technologies such as automation, solvent extraction
system, co-generation in order to process crude oil. It is the technique that supports in get more
out of barrel of oil processes. With the help of this method companies are able to transport the
refined products by lorry, pipeline to service station more safely for marketing and distribution.
As per the view of Mohammed and et.al, (2013) pipelines are comparatively safe and
efficient medium. The main reason of high safety in the pipelines are that many risks are unseen
which can be handled effectively. These are both onshore and offshore line, there are more than
300000 miles of the intrastate and interstate transmission pipeline as well as 2.1 million miles of
distribution pipeline. In Nigeria there are more than 68 million of residential customers and more
than five million commercial enterprises which are using oil. For that there are three major types
of pipelines are founded with the transportation route which bring oil to the point of use from the
point of production (Dibia and Onwuchekwa, 2015). That are gathering, transmission and
distribution pipeline. Gathering pipeline system collect raw material oil from the production
wells and then transport it to the cross country pipeline. Transmission pipeline transport raw
material oil to the thousand miles for processing them to make them for the use and distribution
pipeline system which transport the oil to the household and business, this is also called as
service lines.
Olomu and Irefin, (2016) argued that cost cutting can be the good strategy to overcome
the marketing issues in the organization. The rising price of the raw material cause rise in cost of
production which leads to rise in price of the products and consumer will not prefer to buy
product at the increased price. Organization should have control over their expenses so that they
can sell their products of oil and gas at low prices in order to attract large customers. The
company should rediscover their spirit of efficiency and they can lower their production cost and
increase their production (Bala, 2013). This can be done through expenditure cuts, staff reduction
etc. lowering their cost will help them to deliver more product by 20 to 30 %.
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As per the view of Omodanisi, Eludoyin and Salami, (2014) other than those strategies,
the organization can also adopt vertical integration which means collaboration. It is the effective
way to lower down the cost as well as it also help the company to enhance their efficiency by
making alliances with other firms. Combining engineering, software and equipment as well as
different combination of services will give good value to the consumers. The services and
equipment purchase department are to be outsource by the organization which help them to focus
on the marketing department and they can create large awareness in the minds of customers. The
different companies are trying to make that activities outsource which help them to reduce their
cost about 30%. With that firm are trying to develop integrated different offers in house and
many of them are merging and partnering with the other companies to provide wide range of
services.
Ama, Nwajei and Agbaire, (2017) argued that New revenue models should be
implemented by the organization so that they can share their financial risk for the future rewards
and manage their marketing activities. In this strategy, the company can make performance
based contract with the service, equipment and material provider. This will help Capital Oil plc
to serve their operators with more flexibility by lowering down their cost base and keep that fund
to invest in difficulty situation that occurs in marketing.
As per the view of Igbinovia, (2014) the company can enhance their concentration of the
different marketing and distribution activities, different control measured should be taken by the
organization where they can keep proper eye and records of purchase and sale. They can
maintain goods relationship with the different distributors which help them to transfer oil and gas
to the customer at low cost with that they can focus on marketing activities and invest more fund
in the marketing their products and services.
Mohammed and et.al, (2013) argued that the company can focus on the new equipment
and service model so that they can design their value. They can use proper investment in new
technology which help them to capture large market share and sustain the market with
competitive advantage. In today's world, the oil and gas prices are on the hike which have
created new efficiency but with that organization have to create their passion in new technology
which can help them to reduce their cost and serve quality products and services. Now-a-days
different firms are redesigning their equipment at the modular design to reduce inefficiency. In
12

the pastime the goods were not designed with the cost and the customer does not satisfy with the
products for which they are paying. But in recent years due to increase in the competition, the
companies are trying to serve the best quality goods at low price so that they can gain
competitive advantage.
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CHAPTER 3: RESEARCH METHODOLOGY
Introduction
Research methodology can be considered as science of studying the research. Researher
uses various criteria to address the research problems. In the research methodology various tools
and techniques are involved that supports in carry out an investigation in effective manner. This
chapter will describe methods that have been selected for conducting the research. Justification
will be given for each tool and technique.
Research philosophy
It can be defined as belief in which data about the topic can be gathered, analysed and
used. It majors deals with the source, knowledge development about the subject matter. The
manner in which scholar carry out the investigation is defined through research philosophy.
Mainly there are two types of philosophies; interpretivism and positivism. Both these tools are
different in nature (Chatrakul Na Ayudhya, Smithson and Lewis, 2014). Positivism research
philosophy can be defined as way in which scholar focus on assessing objective. This tool
supports in identifying the false fact and gathering information which are relevant to the study.
Positivism technique assists in conducting the investigation in systematic and structural manner.
It helps in gathering information which are gathered through observation. Positivism philosophy
does not involve human being in investigation.
On other hand interpretivism philosophy is another tool which pays more attention of
subjective part. It involves various theories and models related to the topic. It is the method in
which researcher involves human being in the study in order to develop in-depth understanding
about the topic (Jensen, 2013). This method gives information on the bases of research questions.
Present study is about the different issues that are responsible for the poor performance of
distribution and marketing activities of petroleum companies in Nigeria. For the present
investigation scholar has used interpretivism philosophy. With the help of this tool individual
emphasis on conducting the investigation on qualitative manner. Investigator has involved
models and theories related to subject matter and has gather in-depth information about the topic.
That has supported the researcher in identifying issues faced by petroleum companies in Nigeria
related to distribution and marketing. Furthermore, this tool has supports in gathering
information about contribution of refineries and petrol stations in addressing the issues of oil and
gas companies in the country.
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Research design
Research design can be defined as methods of collecting the information and analysing
measures. It is referred as overall strategy that helps in integrating different components of study
in logical manner. The main reason of involving the research design in the dissertation is that
effectively address the research problem. It can be defined as blueprint of measuring and
analysing the data (Sessler and Imrey, 2015). Research design can be considered as action plan
upon which scholar built entire study. There are various types of research designs such as
descriptive, exploratory etc. Descriptive research design can be defined as theoretical analysis
that support the scholar in describing the facts related to topic. This toll effectively define the
characteristics of population and try to find out the results on the bases of collected information
about the topic. Descriptive research design assist in highlighting the current issue so that overall
situation of the oil ad gas companies can be explained in effective manner.
On other hand exploratory research design is another method which is used by scholar in
the dissertation (Chatrakul Na Ayudhya, Smithson and Lewis, 2014). By using this tool
researcher explores the research questions. By this way scholar can draw valid conclusion.
Furthermore, experimental research design is another type of research design in which scholar
pay attention of monitoring process so that study can meet with the objective.
In the present study on different issues are responsible for the poor performance of
distribution and marketing in the oil and gas companies, researcher has used the descriptive
research design. Scholar has explained each research problem and its causes deeply. It has
supported the scholar in gathering in-depth information about the topic and getting the results
accordingly. Descriptive research design has helped in identifying contribution of refineries and
petrol station in the petroleum industry (Jensen, 2013).
Research approach
Research approach can be defined as best technique that helps in conducting the study in
specific manner. That can be considered as master plan which define the methods of data
collection so that researcher can develop in-depth understanding about the subject matter. There
are generally two main types of research approach; inductive and deductive. Inductive research
approach is the method that helps in assessing the issues of distribution and marketing in the oil
and gas companies. In this method scholar needs not to frame the hypotheses and individual can
carry out the investigation in systematic manner (Igbinovia, 2014). On other hand deductive
15

approach is another method that supports in developing the theory on the bases of research
questions. Researcher takes support of theories and models and find out the results.
In the present dissertation scholar has taken support of inductive research approach. It
was the best suitable method for the present study. With the help of this technique's scholar has
developed theories and have find out the contribution of petrol stations and refineries in the
distribution and marketing issues in the Nigeria oil and gas companies. This tool has supported in
determining the regularities in the topic (Dibia and Onwuchekwa, 2015). That has supported in
carry out the study in effective manner and meeting with the objective of the investigation.
Research Strategy
It is one of the essential part of dissertation in the absence of appropriate research
strategy scholar can not meet the pass criteria and can not draw a valid conclusion. There are
generally two types of research strategy applied in the study; qualitative and quantitative.
Qualitative method pays more attention on implementing theories and model in the investigation
in order to find out the results. With the help of qualitative method's scholar can gather in-depth
information about the topic and can meet with the research objective. On other hand quantitative
strategy is another type of strategy in which researcher has to use some statistical information,
figures in order to find out the results (Jensen, 2013). This arithmetical approach supports in
getting then authentic information about the subject matter.
In the present investigation about different issues that are responsible for the poor
performance of distribution and marketing activities of petroleum companies in Nigeria
researcher has used qualitative strategy. By involving the theories and models scholar has got to
know how these issues are affecting the business operations. In addition, investigator has
developed their understanding about contribution of refineries and petrol stations in identifying
these issues in the petroleum industry. This strategy has supported the scholar in drawing the
valid conclusion about the subject matter and getting optimistic results about the issues of
distribution and marketing in the oil and gas companies.
Data Collection
Data collection is one of the most important part of dissertation. With the help of
appropriate information scholar can develop their understanding and can reach to the final
conclusion. In the absence of valid detail about the topic scholar become unable to conduct the
investigation in effective manner. Primary and secondary are two main methods through which
16

individual can gather in-depth information about the topic. That depends upon the type of study
that which type of method can be beneficial and helpful in gathering information about the
subject matter (Sessler and Imrey, 2015). In the primary data collection source investigator takes
support of questionnaire, observation, survey techniques in order to known about the topic and
getting relevant information about the same. These details are collected specific to the subject
and used first time for the present investigation. On other hand secondary data collection sources
are those methods in which scholar takes support of already available information. Books,
journals, internet articles etc. are considered as secondary sources. These are already used data
and researcher uses these detail as per the requirement of the investigation. Both these tools are
effective enough and helps the researcher in developing understandings and reaching to the
conclusion.
In the present study on different issues related to marketing and distribution in the oil and
gas companies of Nigeria scholar has taken support of primary and secondary sources both. In
the primary data collection method investigator has used interview technique and in the
secondary source individual has used the statistical data from the NNPC on the industry. With
the help of both these techniques researcher becomes able to know about the various issues, role
of refineries and petrol stations in the oil and gas companies of Nigeria.
Sampling
Sampling is the method in which scholar has to select the samples from the whole
universe those who an give i9nformation about the topic and can help in getting the results. It is
essential that researcher select the appropriate sample those who have great knowledge about the
subject matter. There are various sampling techniques such as random sampling, strata sampling
cluster, systematic sampling etc (Chatrakul Na Ayudhya, Smithson and Lewis, 2014). In the
random sampling method scholar randomly selects the samples and accordingly collect the detail
about the subject matter. In the stratified random sampling method researcher divide the entire
population into different strata. These strata are divided on the bases of age, group etc. Selection
of correct samples plays significant role in the dissertation because with the help of this scholar
can meet with the objective and can conduct the investigation in effective manner.
In the present study of different issues of marketing and distribution in the oil and gas
companies in Nigeria researcher has taken support of simple random sampling method. The
focus of scholar was on the identifying the challenges faced by oil and gas companies and find
17

out major players in the petroleum industry in the country. For gathering information about the
same investigator has incorporated focus group as sample in the investigation. In this study
scholar has taken interview with the 10 employees of Capital Oil plc. These group members are
able to clearly define the condition of the company and how they address marketing and
distribution issues.
Data Analysis
Data analysis the major tool that is applied in the dissertation. With the help of this
technique scholar analysis the information in effective manner. Selection of data analysis tool is
depends upon the type of investigation. In the quantitative type of study scholar generally use the
statistical tool such as SPSS, T test etc (Jensen, 2013). these helps the researcher in analysing the
information by taking statistical data. On other hand in the qualitative type of study scholar uses
thematic or other tool so that individual can present the data in graphical manner.
In the present study of different issues of marketing and distribution in the oil and gas
companies, contribution of refineries and petrol stations, scholar has used the deep dive analysis
method. It is considered as most effective way to analysis the data. With the help of this tool
scholar has become able to draw the conclusion in effective manner.
Ethical consideration
Ethical consideration is one of the effective approach which help the researcher to find
the gap between what is right and what is wrong. In every research project, researcher need to
consider some ethics so that they can able to avoid the unethical work in the whole work of the
study. It is very important for the researcher to identify some laws and regulation which is
related to his subject so that they complete his work in the ethical and effective way. Here the
researcher have select different complimentary approaches which is related to his investigation
which is done by the researcher. The ethical consideration should be done at the time of
collecting primary and secondary data. When the primary information is collected, researcher
should keep proper safety and security of the personal information about the respondent. If the
data is leaked then it will affect the viability of the research (Sessler and Imrey, 2015). To
manage these problems, the researcher need to manage the link between the motivational factors
and business performance when the survey is made. Hence, the researcher need to maintain
proper safety and security with the personal information of the respondent. When the information
18

is collected from the website, researcher need to identify that collection of information is allowed
or not.
19

CHAPTER 5: FINDINGS AND DISCUSSION
Introduction
Data analysis is considered as one of the most important chapter of the dissertation. It is
essential for the researcher that to analysis each information in effective manner. It helps in
getting optimistic results and drawing the valid conclusion. In this chapter scholar will analysis
the data that have been gathered and will discuss each aspect.
Finding
Theme 1: Working time period in the Capital Oil plc
1 year 2
1-2 year 3
2-3 year 4
More than 5 year 1
Interpretation: From the above discussion it is found that 2 out of 10 respondents have said that
they are working in the organization from 1 year. Whereas 3 out of 10 answers have viewed that
they are working in the Capital Oil Plc from 1-2 years. 4 participants have said that they are
working in the firm from 2-3 years. From the discussion it has been analysed that maximum
employees are working in the cited firm between 2-3 years. It is too long time in which
individual can gather good detail about the company. They are able to answers the interview
20

question about issues of marketing and distribution face by the cited firm that decreases
performance of the Capital Oil Plc.
Theme 2: Capital Oil plc have experienced transportation problems
Yes 7
No 3
Interpretation: From the above discussion it is found that 7 out of 10 respondents have said that
Capital Oil Plc is facing the transportation problems to great extent. That is the main reason that
it is unable to met with the demand. This issue increase burden of the entity and it fails to
perform well in the petroleum market. On other hand 3 out of 10 answers have viewed that
capital oil plc does not face any transportation issues. It smoothly works and has sufficient
transportation sources and due to this it is able to meet with the demand. From the above
discussion it can be interpreted that cited firm is facing the transportation issues that is the reason
that distribution problems are increasing in the organization. That creates problem for the cited
firm and it fails to meet with the energy needs of population. That is why its revenues are
decreasing and due to this transportation issue many oil and gas companies are unable to get
sufficient resources.
Theme 3: Petrol stations operate by the organization
1-2 5
3-5 4
6-8 1
9 and above 0
21

Interpretation: From the discussion it is analysed that 5 out of 10 respondents have said that
Capital Oil plc operates 1-2 petrol stations. On other hand 4 out of 10 answers have viewed that
it has 3-5 petrol stations. Whereas 1 participant have said that company has 6-8 stations. From
the discussion it can be interpreted that cited firm has limited petrol stations that is the reason
that company is facing distribution issues. Because of limited station it is unable to store the
material properly and distribute it on time. The main issues which are responsible for the poor
performance of Capital oil Plc are distribution and marketing issues. Both these are big problems
for the organization that creates problem for the entity and it fails to meet with it objective. Cited
firm is required to work upon increasing petrol station so that it can generate sufficient energy
and can distribute it on time without any complexity.
Theme 4: Petrol stations are performing adequately to meet with the energy demand
Strongly agree 1
Agree 3
Disagree 4
Strongly disagree 2
22

Interpretation: From the above discussion it is analysed that 1 out of 10 respondents have
viewed that they are strongly agreed with the point that petrol station that company operates
adequately performed. On other hand 3 out of 10 answers have said that they are agreed that
these station perform properly so that company can meet with its objective. Whereas 4 out of 10
participants have viewed that they are disagreed with this point that petrol station perform well.
They have responded that these stations are unable to perform well because poor technology and
ineffective management creates problems that impact on the working performance of the
organization. That is why Capital oil plc is facing huge trouble in the petroleum industry. On
other hand 2 out of 10 respondent have viewed that they are strongly disagreed with this point
that station perform adequately and contribute well in achieving goal of the organization.
Theme 5: Distribution channel Capital Oil plc adapts to ensure availability of petroleum
products
Direct 3
One level 2
Two level 4
Multilevel 1
23

Interpretation: From the above report it is analysed that 3 out of 10 answers have viewed that
Capital Oil plc adapts direct distribution channel in order to ensure availability of petroleum
products. On other hand 2 out of 10 participants have viewed that company adapts one level
distribution channel so that it can meet with the energy needs of the Nigerian petroleum market.
4 out of 10 respondents have viewed that company adopts two level distribution that helps the
entity in accomplishing its objective. Whereas 1 answers have said that it adapts multilevel
distribution channel. From the above discussion it can be interpreted that Capital Oil Plc is using
two level channels that support the entity in smooth functioning but due to transportation issues
distribution problems arise in the entity that impacts on its working performance and it fails to
achieve its goal.
Theme 6: Main problems encountered in distribution of its petroleum products
Inefficient transportation networks 4
Storage issues 3
Refineries inabilities to meet with the demand 2
Efficiency in management 1
Avoidance of pipelines 0
24

Interpretation: From the above discussion it is found that 4 out of 10 respondents have said that
inefficient transpiration networks are the major issue encountered in the distribution of petroleum
products in the Capital Oil plc. Whereas 3 out of 10 answers have viewed that storage issue is the
main problem in the oil and gas companies due to which firm is unable to distribute its oil and
gas products on time. That is the reason that cited firm is unable to sustain in the Nigerian market
for longer duration. On other hand 2 out of 10 participants have viewed that refineries inabilities
to meet with the demand is the main problem encountered in the distribution of oil and gas
products. That creates problem for the organization and due to this it fails to met with the
demand of consumers. 1 out of 10 respondents have said that ineffective management are the
major issue that impacts negatively on the distribution of petroleum products in the Nigerian
petroleum industry. From the above discussion it can be interpreted that inefficient transportation
networks and storage issues are the major problems with the petroleum companies of Nigeria due
to which they fail to distribute their products on time. Due to this Capital Oil Plc was facing huge
issue and it fails to met with the demand.
Theme 7: Refineries play their role effectively
Strongly agree 3
Agree 5
Disagree 1
Strongly disagree 1
25

Interpretation: From the above study 3 out of 10 answers have said that they are strongly agreed
with the point that refineries play significant role in the petroleum industry. Whereas 5 out of 10
answers have viewed that they are agreed with this point that refineries perform their duties
effectively. They are the major contributors of the petroleum industry of Nigeria and due to their
efforts oil and gas companies become able to manage their work effectively. 1 out of 10
participants have viewed that they are disagreed with the point that refineries play significant
role in the petroleum industry. They said that they do not pay attention of problems and due to
improper management oil and gas companies have to face distribution and marketing issues. 1
out of 10 answers have viewed that they are strongly disagreed with the point that refineries
effective work. Form the above discussion it can be interpreted that refineries perform their
duties well but due to ineffective management and network issues they fail to met with the
objective.
Theme 8: Main marketing issue face by the company that impacts on its performance
Ineffective management 3
Poor resource 2
Increasing independent marketers 5
Others 0
26

Interpretation: From the above discussion it is analysed that 3 out of 10 answers have viewed
that ineffective management is the major critical issue of marketing face by petroleum firms
which badly impacts on the company's performance. On other hand 2 out of 10 answers have
said that poor resources are the main issue that creates problem for the entity. 5 out of 10
participants have viewed that increasing independent marketers are the main marketing problem
for the Capital Oil Plc that creates huge pressure on the cited firm and due to this it fails to
market its oil and gas products effectively. Indigenous independent marketers cover large market
share. With the increasing independent marketers company face huge trouble and it has to face
high competition. From the above discussion it can be interpreted that increasing independent
marketers and ineffective management are major marketing issues that impacts on overall
business performance of the organization to great extent. If Capital Oil Plc manage this risk and
take action to make effective control over it then it will be able to resolve this problem and will
be able to sustain in the petroleum market for longer duration.
Theme 9: Capital Oil plc address marketing and distribution issues in its workplace
Use of advanced technology 2
Effective utilization of resources 3
visual inspection 4
Others 1
27

Interpretation: From the above discussion it is analysed that 2 out of 10 answers have viewed
that Capital Oil plc takes support of advanced technologies in order to address marketing and
distribution issue in its workplace. On other hand 3 out of 10 participants have said that effective
utilization of resources is another technique which is adopted by cited firm. This tool assists the
entity in managing its problems and minimizing the distribution and marketing issues of the
organization. Whereas 4 out of 10 respondents have respondent that visual inspection is the
effective method which is adopted by Capital Oil plc in order to address marketing and
distribution issue in its workplace. Furthermore, 1 answer have viewed that cited firm adopts
some specific methods for specific type of issue every time. That helps organization in in
minimizing marketing and distribution issues of the entity effectively in the workplace.
Theme 10: Main strategy that can support in minimizing marketing and distribution issues and
can help in improving performance of Capital Oil plc
Increasing financial base of firm 2
Increasing number of depots 1
Close supervision 3
Increasing capabilities of refineries and service
stations
4
28

Interpretation: From the above discussion it is analysed that 2 out of 10 respondents have
viewed that by increasing financial base of Capital Oil plc can minimize marketing and
distribution issue and it will help the entity in improving company's performance. On other hand
1 out of 10 answers have said that increasing number of depots is the great strategy through
which cited firm can manage its issues and can resolve it effectively. This is the way through
which corporation will be able to effectively distributes its petroleum products. Whereas 3 out of
10 answers have said that close supervision is the best strategy that can support in minimizing
marketing and distribution issues and can assist in improving overall performance of the
organization. Furthermore, 4 out of 10 answers have said that by increasing capabilities of
refineries and service stations Capital Oil plc can manage its marketing and distribution issues
effectively. From the above discussion it can be interpreted that increasing capabilities of
refineries and service station cited firm can effective resolve its issue. By this way it will manage
its distribution networks and will be able to improve its marketing activities. That would support
Capital Oil plc in sustaining in the market for longer duration.
Discussion
The dissertation has collected information about the different issues that are responsible
for poor performance of distribution and marketing activities of petroleum companies in Nigeria.
Scholar has collected in-depth information about the topic and has identified loop fall in
distribution and marketing activities of entity. Capital Oil plc has faced many problems related to
transportation. Poor transportation networks in Nigeria is the main cause of this issue. Due to
29

poor facilities oil and gas companies are unable to distribute oil and gas products effectively.
That creates burden of entity for sustaining in the petroleum market for longer duration.
Number of independent marketers are increasing in the Nigeria, they cover large portion
of the market. The major key issue of marketing and distribution problems in the petroleum
industry. Inefficient management practices is another problem faced by oil and gas companies. In
addition to this Nigeria petroleum sector has high reliance on imports. Apart from this
unavailability of transportation networks is creating huge trouble for the organization due to this
they fail to distribute their products and services on time to the consumers.
Furthermore, refineries do not perform their work effectively. Petrol stations and
refineries are two major players of petroleum industry. Their contribution can help in improving
the company's performance. By this way oil and gas firms will be able to sustain in the market
for longer duration. Due to losses and vandalism generally pipelines are avoided. Capital Oil plc
is adopting visual inspection and effective utilization of resources in order to minimize
marketing and distribution problems. These techniques are good but it is not enough to make
effective control over these issues. It is strongly required that oil and gas companies closely
supervise its operations so that loop fall can be addressed on time. Apart from this if refineries
and petrol stations improve their capabilities then it will support in minimizing distribution and
marketing issues in the workplace. That will assist petroleum firms of Nigeria in sustaining in the
market for longer duration and meeting energy needs of con summers.
30

CHAPTER 6: CONCLUSION AND RECOMMENDATION
Conclusion
From the above study it can be concluded that petroleum resources play significant role
in the Nigerian economy. It is important that oil ad gas companies effectively manage their
operations so that distribution of petroleum products can be done effectively. It also supports in
managing complex problems of this market. Nigeria is at ninth rank in the energy production
sector. 90% foreign exchange earning is earned by this industry thus, it contributes well in the
economic development of the nation. In the year of 1979 there was only 20 independent
marketers but till 1993 it has increased to 1000. Distribution of petroleum products is major
depends upon the refiners. These refiners support in delivery of petroleum products across the
world. From the report of NNPC it can be articulated that petroleum products are pumped to
depots in Shagamu and from where it is further depots through pipelines.
From the above study it can be concluded that distribution and marketing is the major
issue in oil and gas companies of Nigeria. The main reason of this problem is that low capacity
utilization of government refineries. Distribution system of the nation is quit ineffective and
inefficient. Study has articulated that oil refinery is an industrial process plan where oil and gas
companies processed crude oil and refined it into the useful products. Refineries and petrol
stations contribute well in re-busting the petroleum industry. It helps oil and gas firms in
continuously growing, moving and thriving. Refining industry plays significant role in order to
provide vital products to petroleum firms. These are the main suppliers of transportation fuels
thus, play role of facilitating mobility. Refineries help in providing gasoline, fuel oil for maritime
transport. Contribution of this sector supports the Nigeria in meeting with the energy needs of the
market.
Upstream and downstream are two major sections of this industry; downstream is related
with transportation, refining of oil and gas products. Nigeria does not have sufficient oil reserves
that is the reason that approx. 60% crude oil is required to be imported from other nations. That
creates huge trouble on the organizations and increase their operation cost. In effective
management and unavailability of transportation networks are the major issue in distribution of
petroleum industry of the Nigeria. From the above study it can be concluded that marketing and
distribution is required sound monitoring and effective controlling. But due to poor management
Capital Oil plc is unable to run their operations efficiently. Government is putting hard efforts to
31

minimize uneven distribution of petroleum products. But still this problem has not resolved
completely. Inadequate distribution network has become threat to the marketing of petroleum
products in Nigeria. Distribution risk is increasing burden on the entity, this issue can be
addressed through spreadsheets. With the help of spreadsheet cited firm can quickly generate
graphs of each activity. It is the method that supports in analysing prospects and detect
uncertainty in the oil and gas industry. Poor storage is another major issue that impacts on the
company's performance and creates delivery issue.
From, the above dissertation it can be articulated that local refineries received approx
36.193 million barrel and total output by refineries are approx 5.068 million MT. This figures
show that capacity of refiners are increasing continuously. But still this operation is not enough
to meet with the energy needs of the market. It is strongly required to improve refineries capacity
which can be done by government efforts. Increasing independent marketers are creating huge
trouble for the organization. It is the main reason that impacts on the company's overall
performance. Due to which cited firm fails to conduct marketing activities effectively. In order to
minimize accidents and late deliveries it is essential to improve maintenance of depts. It will
support in smooth functioning of distribution functions.
From the above study it can be summarized that increasing production of liquid fuels in
increasing burden of the petroleum firms of Nigeria. Shortage of liquid fuel in the nation has
affected production, distribution and marketing issues in the oil and gas companies. In such
condition it has become very difficult for country to meet with the energy demand. It is highly
required to increase upstream sector production that is the only way through which such types of
issues can be minimized in the petroleum firms. Price fluctuation increases burden on oil and gas
companies because all of sudden they have to change their operations. State is unable to make
control over increasing fuel prices. This creates distribution issue among these firms and they fail
to accomplish their objectives. Timely changes in policies and procedures leads to have smooth
flow of functioning of business. Small mistake or loop fall in the practices and operations creates
pressure on the firms and they fail to meet with the objectives. Adequacy in distribution network
is considered as one of the major issues faced by petroleum industry of Nigeria. Nation does not
have sufficient oil reserves thus, it has to import the raw material from other countries.
Refineries takes support of technologies such as solvent extraction system, automation, co-
generation in order to process crude oil. It is the technique that supports in getting out of barrel
32

of oil processes. With the help of this method companies are able to transport the refined
products by lorry, pipeline to service station more safely for marketing and distribution.
Recommendation
For resolving marketing and distribution issues of the oil and gas companies of Nigeria,
there are required to take necessary action. These are as following:
 Refineries should be privatized and NNPC needs to hand off operations for domestic
consumption. It will support in minimizing the distribution issues of the Nigeria
petroleum companies.
 Government should build more depots so that distance and problem of transportation can
be minimized soon. By this way authorities will be able to create bride between places so
that transportation can be done effectively.
 Company should train its staff members so that issue of ineffective management can be
resolved. The main marketing issue arise in oil and gas company due to poor monitoring
of managers. If higher authorities give them properly training regarding the same then it
will help the management in understanding their responsibility and finding ways to
perform their work effectively.
 Depots maintenance should be improved, old pipelines should be replaced with new
pipelines so that flow of production can be effective from refineries to depots.
Government should strongly try to refurbished rail system that will support in smooth
delivery of oil and gas products.
33

REFLECTIVE
Dissertation has helped me in increasing my knowledge about working of oil and gas
companies. I have got to know operations, marketing, production activities of petroleum firms.
In addition, I have developed my understanding about issues faced by these organizations. It was
completely new subject for me and conducting investigation on this topic was completely new
experience for me. Furthermore, my communication skill has been improved to great extent. For
gathering information about the topic I had to communicate with government authorities in the
interview session. My communication skill was good but I had never coordinated with such high
authorities. But this study has helped in developing my understanding about formal
communication and how it can be done effectively. I have made conversation with these persons
and they have explained the working of refineries and petrol stations of Nigeria. I had learned
about economic impact of petroleum business on the Nigeria.
My leadership and research skills have been developed to great extent. Earlier I was not
able to lead the team but after this dissertation my leadership skill has been developed
effectively. Now I can lead team of large number of people effectively. My research skills has
been improved, I got to know about various tools and techniques that helps the researcher in
carry out the investigation in effective manner. I have learned about research philosophies,
design, approach, data collection methods. All these tools have helped me in completing this
dissertation properly. I got to know root cause of distribution and marketing issues in the oil and
gas firms of Nigeria. I have developed my knowledge and now I am fully able to conduct another
investigation on petroleum firms of the nation. While conducting the study I realised that in such
limited time period it is difficult to complete the investigation on such wast topic. But scheduling
has helped me in timely completion of dissertation. I got to know importance of scheduling in
research studies.
34

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Appendix
Interview questions
Name
Age
Gender
How long are you working in the Capital Oil plc?
 1 year
 1-2 year
 2-3 years
 More than 5 years
Does Capital Oil plc have experienced transportation problems?
 Yes
 No
How many petrol stations does your organization operate?
 1-2
 3-5
 6-8
 9 and above
Do you agree that stations are adequate to meet with the energy demand?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
What distribution channel does Capital Oil plc adapt to ensure availability of petroleum
products?
 Direct
 One level
 Two level
 Multilevel
 Others
What are the main problems encountered in distribution of its petroleum products?
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 Inefficient transportation networks
 Storage issues
 Refineries inabilities to meet with the demand
 Efficiency in management
 Avoidance of pipelines
Does refineries play their role effectively?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
What is the main marketing issue face by the company that impacts on its performance?
 Ineffective management
 Poor resource
 Increasing independent marketers
 Others
How Capital Oil plc address marketing and distribution issues in its workplace?
 Use of advanced technology
 Effective utilization of resources
 visual inspection
 Others
What is the main strategy that can support in minimizing marketing and distribution issues and
can help in improving performance of Capital Oil plc?
 Increasing financial base of firm
 Increasing number of depots
 Close supervision
 Increasing capabilities of refineries and service stations
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