This paper aimed at appraising the impact of oil production activities on the environment of Ogoniland, Nigeria and also examines the socioeconomic impact on the people. A stratified random sampling technique method was adopted for precision of the sample and a total number of 120 respondents were selected from the area of study and questionnaires were administered among them. The data collected were analyzed using simple descriptive statistics which include the use of frequencies and percentages. The findings of this paper revealed that the externalities of oil production have resulted in profound adverse impacts on traditional lifestyles and livelihood patterns in the study area where unchecked oil exploration and exploitation had taken place for the past forty years. Therefore, this paper suggests the use of abatement procedures and environmentally sound and cleaner technologies for oil exploration and exploitation in order to mitigate/minimize these negative impacts and enhance the positive impacts to achieve a sustainable healthy environment.