For some time now the price of Nigeria's crude oil which has been a major source of her revenue, has nose-dived. Several scholars, professionals and academics alike have been calling for proactive majors to enquiry into the the causes, so as to avert the imminent disaster, by charting a better course of action for the government.

It is in that regard, this study is carried out to identify one major reason for the fall in the price of crude oil. The shale oil on the other hand, is an unconventional oil produced from shale rock. The shale oil is also known as retort oil or light tight oil.

The sedimentary rock, where the shale oil is produced from, converts the organic matters in the rock (kerogen) to synthetic oil and gas.

This study is qualitative in nature, as such, the secondary method of data collection is employed. Relevant relatures were consulted, knowing fully well that, there exist a plethora of them.

The theoretical framework adopted is the determinism theory. This theory asserts that, for every action, is a consequence and vice versa. Everything that happens has a cause. From this study it is established that, the discovery of shale oil has a negative impact on the price of Nigeria's crude oil. Shale oil does what crude oil can do. If the patronage on shale oil increases globally, it invariably means that the price of crude oil in the market will fall. For the Nigerian government to come up with proactive measures to tackling the imminent doom that might happen due to the fall in price of crude oil, in the market, then the need for diversification is nonnegotiable.