Exploration and exploitation of oil and gas in the Niger Delta region of Nigeria has being quite heavy since oil was struck in commercial quantities in 1956. These operations have dire consequences on the environment and have greatly impacted the lives of the people in the region; even though crude oil is a resource and ought to be a source of wealth to any given society. The impact of oil activities in the region has become a major issue of concern to all which have evoked the research of their impact on health, the environment, agriculture and the lives of the people generally. Therefore this paper looks into Epebu community and how the operations of the oil company impacted the environment and the lives of the inhabitants generally. While secondary data was used for literature, 95% of the questionnaire administered on the respondents was retrieved. The study revealed that contamination of fresh and ground water (RII = 5.51), internal and external conflicts (RII = 4.77), reduced economic activities (RII = 4.58) and destruction of trees forest (RII = 4.28) are the major effects that oil operations impacted on the community. The principal component analysis conducted also corroborated this as it showed that these four components accounted for 69.19% of the effects on the community. Therefore, the study recommended that the Nigerian Agip Oil Company (NAOC) manage their operations and relationship with the community in a sensitive and professional manner to avoid conflicts and losses as this will result in the reduction of the negative effects oil operations in Epebu Community.