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Oil and Natural Gas in Conflict
Source: the Economist
"Black gold" often brings hardship and misery to the societies where it is found. Petroleum-producing countries are plagued by corrupt and authoritarian governments, lopsided and unsustainable economic development and violent conflict. Foreign powers and their huge multinational oil companies often maneuver for control of the oil fields through clandestine operations or outright military intervention. In addition, disaffected rebels challenge governments in hope of winning a share of the lucrative oil revenues. Environmental damage by oil extraction can spark protest movements, which are frequently met by violent repression. Boundary disputes between states over oil reserves represent yet another link between oil and violence. As worldwide oil and gas production peaks and consumer demand continues to rise, prices soar, making conflicts for this increasingly scarce resource even more likely in the future.
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General
The Arctic Oil Rush (May 2008)
Russia and the US compete for vast oil reserves in the Arctic, according to Vanity Fair. Although the UN currently prohibits oil exploration in the area under the Law of the Sea Convention, both countries claim territorial rights to the region stating that their continental shelf extends to the polar ice cap. The author warns that drilling for oil in the Arctic will speed up global warming, destroy fragile ecosystems, and threaten the existence of indigenous populations in the Arctic.Asia Has Interests in Myanmar (April 7, 2008)
Several UN Member States have an interest in preventing democratic reform in Myanmar, says the Jakarta Post. The editorial notes that China supports the military rulers in exchange for natural gas and the construction of a pipeline from Myanmar into its Yunnan province. Furthermore, India and Thailand offer the junta financial support, hoping to gain favorable trade deals in the country’s rich natural resources. The author concludes that free from any effective pressure, “the Myanmarese military regime can continue to thumb its nose at the world.”Asian Leaders, Seeking Myanmar’s Gas, May Go Soft on Sanctions (November 20, 2007)
China, one of the major ASEAN countries, does not support sanctions against Myanmar’s military junta. India, once a supporter of Aung San Suu Ky’s democratic movement, recently joined its ASEAN partners, China and Thailand in economic trade agreements with Myanmar’s junta. Only Japan canceled its gas and oil contracts with Myanmar, joining the US and EU in their pro-democratic campaign. Ironically, Chevron Corp, a US oil-giant stated it will keep its natural-gas project in the country even if that means losing US government tax benefits. (Bloomberg)Russia to File Arctic Claim to UN (October 30, 2007)
Global warming and ice melting effects generate access to a part of the Arctic seabed that contains billions of tones of oil, gas and precious metals. In the Arctic Circle, a new resource-driven conflict arises, as Arctic countries struggle to partake in the exploitation. Russia will file a claim by the end of 2007 to the United Nations in order to guarantee a share of this space. According to the UN Law of the Sea treaty, any country that wants to claim a greater share of the sea to its coastline must submit a request to the UN’s Commission on the Limits of the Continental Shelf. (Reuters)Conflict Beyond the Oil Barges (August 13, 2007)
A 1990 agreement between Uganda and DR Congo declared joint ownership and exploitation of oil fields that extend across their shared border. Several violent incidents and the concentration of Ugandan forces in its western Rwenzori border region have led the heads of the Ugandan and Congolese forces to issue a joint communiqué, promoting political solutions to these border clashes. But Uganda “reserves the right of self defense”, and private military company Executive Outcome’s contracts to guard Congolese mines add to the militarized nature of resource exploitation at the border. (Daily Monitor- Kampala)A New Cold War Over Oil (August 11, 2007)
The US-China showdown over African oil has led the Pentagon to establish an African Command (AFRICOM) branch of the military. US-friendly African armies, for example in Congo and West Africa, have absorbed AFRICOM into their command structures, thereby increasing US military presence on the continent. In addition, because the US cannot outbid China on oil dollar for dollar, it implicated China in the Darfur crisis, therefore undermining Chinese investments in Sudan and promoting UN intervention there. According to Professor Vijay Prashad, such oil-based international intervention in Africa will only “create an Iraq” there. (Frontline)Natural Resources Are Fuelling a New Cold War (August 18, 2006)
With reserves of oil and natural gas becoming increasingly scarce and their extraction more expensive, Der Spiegel highlights the impact on the foreign policies of powerful states and on local communities in oil-rich areas. Governments turn a blind eye to human rights abuses and anti-democratic practices to form strategic alliances over control of the natural resources they see as of “existential strategic significance.” Many large states have ambitions on the dwindling supplies of oil and gas. This article underlines the potential for conflict in the various pacts and deals formed to gain control.Oil May Fuel Sino-US Conflict (June 29, 2006)
China’s pursuit for oil in the Middle East will put it on a collision course with US interests in the region, analysts have warned. China relies heavily on the Middle East for oil, importing up to 43% of its total imports from fields in Saudi Arabia, Iran and Sudan. By 2015, up to 70% of China’s oil imports will be from the Middle East, through seas currently controlled by the US Navy. US analysts have also expressed concern at China’s strategy of buying from states that Washington has long opposed. (al-Jazeera)War of the Future (August 18, 2005)
The North-South and Darfur crises in Sudan stem and intensify from oil conflict, yet the US and European media largely ignore this “invisible war,” says author David Morse. Writing in TomDispatch, Morse points to the Bush administration’s “schizophrenic stance" — namely the labeling of the situation as genocide and then quietly lobbying against international action — as one example of how Sudan and other African countries fall victim to the developed world’s greed for oil.The Twilight Era of Petroleum (August 4, 2005)
Michael Klare warns of the impending oil decline, using a Chinese oil company's bid for US-based Unocal and a US-government sponsored "oil shockwave" war game to bring up the willingness of nations, especially the US, to use force to protect oil interests. But no amount of force in these "resource wars" can save the world from global economic crisis when output cannot match rising demand. In this TomDispatch article, Klare offers a valid solution—a quick transition to alternative fuels—but leaves out the answers on how this is possible and whether it will actually happen before its too late. (TomDispatch)US Crude or Petroleum Oil Import Sources (November 19, 2004)
This table lists US military presence in oil-producing countries. It lists main or potential petroleum or crude oil import sources, oil transit routes and actual or potential US presence in these countries. (Foreign Policy in Focus)Oil, Guns and Money (September 2, 2004)
In an excerpt from Oil: Anatomy of an Industry the author argues that US troop redeployment is not about "fighting terrorism" and "ensuring global stability" but "making sure no one messes with American access to global energy resources." Considering the unstable nature of oil-rich regions and a less-than-favorable international climate, America may get the oil it needs, but at what cost? (Salon.com)The Undeclared Oil War (June 28, 2004)
The Washington Post argues that rising demand for oil will lead to new conflicts in the 21st century as states compete for the fuels needed to feed citizens, defend borders and maintain economies. Such conflicts will divert attention and resources from “long-term energy challenges" such as developing alternative fuels.China's Demand for Energy is Reshaping Power Structures Around the World (February 25, 2004)
China's growing demand for oil is reshaping the relationship between the world's two largest oil producers, Russia and Saudi Arabia. With both countries desiring to maintain high global oil prices, the two have pursued closer political ties and increased diplomatic co-operation. This collaboration illustrates how the big powers' demand for oil can indirectly transform global power structures. ( Power and Interest News Report)
Africa
All the Presidents Men: The Devastating Story of Oil and Banking in Angola's Privatised War (March 25, 2002)
This Global Witness report provides an update on the campaign for full transparency within the oil and banking sectors. It continues the investigation, started with A Crude Awakening, into the mechanisms of wholesale state robbery in Angola.
A detailed report by Christian Aid, describing the role of foreign oil companies in escalating and sustaining the civil war in Sudan.
An in depth report by Essential Action and Global Exchange on how multinational corporations involvement in the Niger Delta is leading to environmental destruction, death and impunity.2008
Sudan’s Oil Industry – Facts and Analysis (April 2008)
Oil drives conflict in Sudan, according to Fatal Transactions. The report notes that the Sudanese government undermines a peace-deal signed in 2005 between the North and South of the country by failing to move troops from oil producing areas in the South, and refusing to demarcate a border between the North and South that would evenly distribution oil fields. The author argues that state-owned oil companies from China, Malaysia and India perpetuate the conflict by providing the Sudanese government with military and financial support in exchange for drilling rights.Sudan: The Census Saga Continues (April 15, 2008)
The Sudanese government attempts to manipulate a national census and maintain control of the country’s rich oil reserves, says Inter Press Service. The census is part of a UN backed Comprehensive Peace Agreement leading to the equitable sharing of oil resources between the North and South, based on population distribution. The author notes that by preventing the return of refugees to the South, the government believes it may control a larger percentage of oil revenues.The Chad Conflict, United Nations (MINURCAT) and the European Union (EUFOR) (March 10, 2008)
Unequal distribution of oil revenues as well as a lack of democratic reform by President Idriss Deby leads to armed opposition against the Chadian government says Real Instituto Elcano. In response to this opposition, multinational oil corporations Chevron and Petronas provide the Chadian government with funding to buy military weapons. The author recommends that rather than a military solution, the UN should persuade Idriss Deby to open power-sharing talks with opposition groups, and share oil resources equally.2007
Nigeria: Ending Unrest in the Niger Delta (December 5, 2007)
Nigeria has been facing security instability and politically-sponsored attacks in the oil-rich Niger Delta region. The rebel group Movement for the Emancipation of the Niger Delta (MEND) has complained of the lack of attention from the government. In this report, the International Crisis Group addresses the root causes of the oil-driven conflict and proposes steps to help the region avoid more chaos.Sudan’s President Refuses to Budge Over Oil Region (November 18, 2007)
President Omar Hassan al-Bashir stated that, according to the 1905 British border delimitation, the oil rich Abyei region belongs to Sudan’s northern region of Kordofan. But the Southern People's Revolutionary Movement (SPLM) claims it constitutes part of the south. Even after the end of the civil war, tensions still remain as Sudan’s government, Kartoum, and the rebel movement SPLM dispute the Abyei region. (Reuters)The Course of Oil in the Great Lakes of Africa (October 3, 2007)
European and US companies benefit from the misuse of Congo’s natural resources and support the illegal arms trade. A 2003 UN Security Council Panel “largely documented the nexus of economic exploitation, arms trafficking, and armed conflict, stating that illegal exploitation remains one of the main sources of funding groups involved in perpetuating conflict.” This article states that local conflicts become regionalized when foreign countries intervene. The author is concerned that without an effective and honest government, resource-driven conflicts will continue. (Fahamu - Oxford)Oil War Feared Between Uganda and DR Congo (October 2, 2007)
In spite of the MONUC peacekeeping presence in Congo, the undefined border between Uganda and Congo has created tension, resulting in a lack of trust and conflict between the two countries. To add to the existing tension, Uganda discovered rich oil reserves in the region of Lake Albert, resulting in the deployment of troops from both sides. The two governments ask for international assistance to determine who has the right to explore the oil and to help delimit the lake territory, preventing another war. (Environment News Service)Chad’s Tragedy (September 7, 2007)
Chad’s situation is similar to Darfur. These oil-rich countries both suffer from corrupt politics, rebel insurgencies and intense international interest. Oil production in Chad started in 2003 under a consortium of transnational companies including Exxon, Shell and Chevron, with the support of the World Bank. This partnership was supposed to construct a pipeline to the Atlantic Ocean and invest part of the income in a fund for social and educational purposes. Instead, corruption and external interventions have caused a humanitarian crisis in Chad. (openDemocracy)State Rules: Oil Companies and Armed Conflict in Sudan (July 18, 2007)
Since oil multinationals discovered Sudanese oil in the 1970s, they have perpetuated Khartoum’s repressive policies, including the North-South and Darfur conflicts. This Third World Quarterly article attributes decades of multinational corporation (MNC) policy in Sudan not only to the corporations themselves, but especially to their home governments’. These include home countries and companies such as the EU (Lundin), Canada (Talisman), the United States (Chevron), and more recently China (China National Petroleum Corporation (CNPC)) and India (Oil and Natural Gas Company (ONGC) of India). Similar relationships between home governments, oil multinationals and host governments exacerbate conflict in other oil-rich countries.The Mixed Blessings of Oil Boom for African Countries (May 16, 2007)
Although many African countries such as Nigeria, Angola, Gabon, and Equatorial Guinea enjoyed great revenue increase in the 1990s from the petroleum industry, the oil money benefited the countries’ leaders and not the people who still remain in poverty. This Gulf Times article says that while the responsibility of managing oil resources lies with governments, others should do their part, including foreign oil companies, the World Bank, the International Monetary Fund, the US and other governments by demanding transparency from African governments.Oil in Darfur? Special Ops in Somalia? (February 7, 2007)
This Global Research article discusses the concept of humanitarian intervention and the different actors involved – as well as their associated motivations – in pushing for intervention. In the case of Darfur, the author argues that a complex web including corporations, nongovernmental organizations and Western media outlets are all complicit in pushing governments to act to “save” the victims of the crisis. However, the article maintains that the motivation behind such intervention ultimately comes down to access and control of natural resources.World Bank OK With Blood For Oil (January 5, 2007)
As conflict continues on the border between Chad and Sudan, this TomPaine article investigates the World Bank’s involvement through its finance driven policies. By agreeing to let Chad use its oil revenue for “administration” and “security” as opposed to socio-economic development as previously agreed, the World Bank gives the Chad government free rein to spend oil money on weapons.2006
War in Sudan? Not Where the Oil Wealth Flows (October 24, 2006)
Thanks to oil exports and Asian foreign investments, Khartoum enjoys a new economic prosperity. Yet, the one million square mile country draws much more attention from the conflict currently occurring in Darfur. This New York Times piece points out that western trade embargo on Sudanese exports resulting from Sudan’s human rights record in the 90s lacked effectiveness as Sudan's Asian and Middle Eastern trading partners secure Khartoum with an important source of wealth.Oil Disputes Raise Tension among Southern Sudan Factions (September 26, 2006)
This World Politics Watch article warns that oil and ethnicity clashes may threaten another surge in the Sudanese conflict. “Unequal distribution of oil revenues, bungled oil contracts, and differences in ethnic power sharing” create new grounds for conflict in the already divided country. The government of south Sudan, in particular, accuses Khartoum of not channeling oil revenue to the regional communities and blames foreign companies of exploring illegitimately oil resources, further increasing tensions among Sudanese factions.What Imperialists Don’t Say: Oil Is Behind Struggle in Darfur (April 27, 2006)
Many experts accuse veto-wielding China of blocking Security Council action against the Khartoum government to protect Beijing’s oil investments in Sudan. This article points out that the US, France, and UK also have oil interests in Sudan, especially in Darfur’s untapped oil reserves, which represent a vast amount of potential wealth at a time when the price of crude oil has skyrocketed. The author questions the “imperialists’” motives for pushing to replace the African Union peacekeeping mission in Darfur with 20,000 UN troops. (Workers World)2005
Is Nigeria the Next Persian Gulf? (November 10, 2005)
The US is intensifying its military presence in the Niger Delta in an attempt to grab hold of new oil fields that are not in the “troublesome” Persian Gulf region. According to a Nigerian NGO leader, "there is clearly an increase in US weapons in the hands of the Nigerian army and navy." Many in the Niger Delta worry that increased US military presence will heighten tensions and lead to more violent conflict. (AlterNet)Sudan at the Head of a Global Sweep to Mop up World's Oil Resources (November 9, 2005)
China has won a new ally in its quest for oil: Sudan. Chinese firms are intensively investing in the oil-rich country. This business alliance is expected to bring Sudan more than $1 billion in oil revenues in 2005. But human rights campaigners warn that this Chinese oil bid undermines efforts to hold Khartoum accountable for its terrible rights record in Darfur. (Guardian)Sino-US Energy Competition in Africa (October 7, 2005)
The US and China, the world's first and second largest energy consuming countries respectively, are increasingly competing to secure energy resources in Africa. This Power and Interest News Report maintains that this rivalry could not only exacerbate the already shaky Sino-US relationship, but could also heighten instability in conflict-prone Africa.Burdens of Oil Weigh on Nigerians (October 3, 2005)
Conflicts in oil producing Africa are causing great concern in Washington. Nigeria, which produces 10 percent of the oil consumed in the United States, presents the greatest potential to wreak havoc on global oil markets. According to Aryakwee Nsirimovu, Executive Director of the Institute of Human Rights and Humanitarian Law, tensions are mounting between the oil-rich southeastern tribes, the oil companies, and the Nigerian federal government. “If things blow up, they will be incredibly difficult to control." (Boston Globe)In Africa, Oil Can Bring Problems (September 17, 2005)
“Often, oil money is a driving force in pushing long-standing political rivalries to the boiling point.” In the oil-rich Kalabari region in Nigeria, militias have fought and killed thousands of people since 1995 over the royalties the oil producer Shell gives to local rulers. The case of Nigeria, the world's seventh-biggest oil producer, illustrates how oil can be a curse in Africa. According to a Catholic Relief Services report, “oil industry growth in repressive, corrupt and poor countries too often results in more repression and corruption.” (Associated Press)African Oil: Whose Bonanza? (September 2005)
Can the discovery of oil in southern Chad provide its nearly ten million citizens with a decent future after decades of civil war, injustice, and upheaval? The author of this National Geographic article hopes that the tripod that controls Chad’s oil industry- the oil companies, the government and the World Bank- will honor the principle of using oil revenue to eliminate poverty. But according to Chad’s Oil Minister Youssouf Abassalah, the oil benefits are coming through very slowly. "What reaches the Chadian state is really minimal compared with the people's expectations."Oil Discovery Adds New Twist in Darfur Tragedy (June 15, 2005)
The discovery of “abundant” oil-fields in Darfur suggests that the Sudanese government engages in the ongoing conflict in a self-serving ploy to gain control of the oil-rich land. However, some critics argue more optimistically that the potential oil profits may “speed up peace talks” between the rebel groups and Khartoum. Commentators explain Washington’s serious push for peace in Darfur and the lack of stronger Security Council sanctions by economic interests sparked by the oil finding. (AlertNet)Briton Named as Buyer of Darfur Oil Rights (June 10, 2005)
British millionaire Friedhelm Eronat’s “purchase of oil rights” in Darfur illustrates that “the scramble for Africa” continues: Britain “is serving as a base for questionable transactions” and speculations soar that Mr Eronat may also be acting for China. Meanwhile, human rights activists express outrage that wealthy corporations pay the Sudanese military regime: as a representative of the Darfur rebels indicates, the oil exploration fuels the conflict by financing “the ruling elite.” (Guardian)Oil Giant Admits Nigeria Aid Woes (May 4, 2005)
US oil firm ChevronTexaco has found that its Nigerian aid program has increased ethnic tensions in the Niger Delta region and that its cash aid has indirectly led to violent conflict. Instead of handing out money at village level, the company intends to devise specific projects for locals. Nigerian protesters say ChevronTexaco has failed to bring jobs to the region, and that the company’s aid program has encouraged corruption and conflicts among communities. (BBC)Fight for Oil Wealth Fuels Violence (February 7, 2005)
Human Rights Watch (HRW) urges the oil industry to maintain transparency in its financial assistance to local communities in the Niger Delta, so that funds do not end up in the hands of armed groups fueling violence in the region. In 2003 and 2004, local leaders recruited unemployed youths to wage war in an attempt to seize oil revenues and government funds. In its February 2005 regional report, HRW calls on the Nigerian government to "pursue a comprehensive strategy to tackle theft of oil and stop the flow of small arms into the Niger Delta."2004
Unravelling the Coup Plot (December 9, 2004)
The Equatorial Guinea coup plot raises some uncomfortable questions for the UK and US governments. This article points to US and UK strategic oil interests, saying the two countries may have condoned regime change because they were embarrassed over President Obiang's human rights record or because Obiang sought to renegotiate oil contracts to gain a bigger share for his country. Media have largely focused attention on UK involvement, but this article looks at Washington's possible role in the putsch. (Pambazuka)Unrest Forces Temporary Closure of Canadian Oil Site (December 6, 2004)
Violent clashes in Ndolou, Gabon, Africa's fourth-largest oil producer, between military police and local protesters caused Canadian oil company Panafrican Energy to temporarily shut down operations there. Locals demanded a fair share of oil riches, expressing anger over the vastly unequal division of the country's wealth. Oil companies say although they have tried to meet local demands, at some point the government must take responsibility for the people's needs. (Integrated Regional Information Networks)How Much Did Straw Know and When Did He Know It? (November 28, 2004)
Both British intelligence and the US Pentagon received two separate reports in December 2003 and January 2004 warning of an impending March 2004 coup attempt in Equatorial Guinea. Neither government warned President Teodoro Obiang Ngema of the putsch, possibly violating international law. Equatorial Guinea is Africa's third-largest oil producer, and Alex Yearsley of Global Witness says the intrigue has "all the hallmarks of resource colonialism, with major powers desperate to get a stranglehold of the area's strategic resources." (Observer)Nigeria: Are Human Rights in the Pipeline? (November 9, 2004)
The Amnesty International report “Nigeria: Are Human Rights in the Pipeline?” examines how oil-related transnational corporations (TNCs) and the Nigerian government seriously violate the human rights of individuals and communities through their actions. In addition, the document examines how some TNC corporate social responsibility projects such as schools and roads have fueled severe local conflicts over resources.We Did Know of Africa Coup (November 14, 2004)
The British government knew about the coup plot in Equatorial Guinea at least five weeks before President Obiang's government arrested mercenaries in March 2004 for planning the coup. Zimbabwe's President Robert Mugabe has accused the UK, US and Spain of plotting the coup to gain control of the country's oil wealth. Equatorial Guinea is Africa's third-largest oil producer. (Observer)Fueling a Crisis in Nigeria (October 25, 2004)
Nigeria is set on implementing IMF-endorsed reforms that would eliminate gas subsidies, causing higher gas prices that opponents argue would "benefit marketers and government coffers while devastating most other sectors," including the country's poor. The government has reacted to criticism by silencing opposition instead of operating transparently and observers fear more people will resort to violence as the country's democratic institutions fail them. (YaleGlobal)Rebel Leader – Voice for the Masses, or Skilled Opportunist? (October 18, 2004)
Supporters of rebel leader Dokubu-Asari have hailed him as a "freedom fighter" after he threatened to wage war against the government and multinational oil companies to gain oil wealth for the Niger Delta population. Detractors, however, claim he is nothing but an opportunist armed by the "very government he now opposes." Dokubu-Asari reached a shaky disarmament agreement with Abuja in early October 2004, but some say violence will erupt again as "that is the only language that the Nigerian government understands." (Inter Press Service)Why Africa Keeps Fighting Over Oil (October 1, 2004)
The conflict in the Niger Delta region between local militias, the government, and transnational companies is yet another example of natural resources fueling conflict in Africa. The conflict highlights "widespread theft and mismanagement… corrupt governments, and cynical behavior by Western policymakers and multinationals" that afflict many resource-rich African nations. (Christian Science Monitor)Nigerian Oil Region Insurgents Prepare for Armed Battle (September 28, 2004)
The rebel group Niger Delta People's Volunteer Force has declared it will begin an armed insurgency in the southern Niger Delta for the right to Ijaw self-determination and to gain control of the region's oil riches. The rebels accuse multinational oil companies of providing the government with equipment to aid in bombardment of rebel camps and have advised foreign embassies to withdraw their nationals from the region. The Nigerian government dismisses the rebel groups as gangsters. (Associated Press)Shell Unable to Shake Off Troubled Ogoni Legacy As Dispute Over Pipeline Deepens (September 16, 2004)
Shell shut down its Ogoni operation in Nigeria in 1993 due to protests over pollution and the failure of oil wealth to benefit the local people. Now Shell does not want to do maintenance on pipelines in the region for fear of violence and has stationed the Nigerian mobile police, nicknamed "kill and go," around its facilities. The local community is angered over police brutality and poor clean-up efforts. (This Day)Port Harcourt Gang Warfare Picks Up Pace (September 5, 2004)
Rival gangs are engaged in turf wars over oil theft operations in Nigeria's oil center Port Harcourt. Many fear Port Harcourt will turn out like the Western town of Warri where violence has severely hindered oil operations. One industry analyst notes that the government should address poverty and unemployment issues that are leading to increasing dissatisfaction amongst local groups in order to control the violence. (Integrated Regional Information Networks)US and France Begin a Great Game in Africa (August 11, 2004)
France and the United States have engaged in a growing competition for favors in oil- rich North and West Africa. Both Paris and Washington are supporting African military dictators while seeking access to their natural resources. According to many analysts, “over the next five years a quarter of non-Gulf oil on the world market will come from sub-Saharan Africa.” (Inter Press Service)Oil and Corporate Recklessness in Nigeria’s Niger Delta Region (July 29, 2004)
Oil in the Niger Delta has led to "environmental devastation, economic poverty, and constant conflict" in the region. The government and multinational oil corporations reap all the benefits while minorities in the region face poverty, intertribal warfare and arms proliferation. (Pambazuka News)Oil Driving US Move on Sudan (July 11, 2004)
According to the East African Standard, the United States’ involvement in Darfur is not the result of a “newfound whim of philanthropy in Washington.” Rather, the United States is pursuing a crucial strategic interest in Sudan--access to African oil. A potential pipeline, supplying Chad with “blood oil” from Southern Sudan,” could pass through Darfur itself.Shell Admits Fuelling Corruption (June 11, 2004)
Oil giant Shell admits to helping fuel conflict and corruption in Nigeria by the way company officials “award contracts, gain access to land, and deal with community representatives.” (BBC)Africa: Oil, Al-Qaeda and the US Military (March 30, 2004)
This article argues that the US has used increasing military involvement and cooperation with oil-rich countries across Africa to combat "terrorism" as a pretext to fulfill its desire to explore the continent's oil resources. (Asia Times)Africa's Dangerous Treasure (March 10, 2004)
A lucrative oil and pipeline project in Chad has renewed concerns about the corruption and human rights problems in the country. The authors urge the World Bank, a project partner, to set up a monitoring committee to ensure that the Chadian government uses oil revenues to improve the well-being of its people, and make public all information on any new oil exploration efforts. (Washington Post)2003
Nigeria: the Warri Crisis: Fuelling Violence (December 17, 2003)
According to Human Rights Watch, members of the Nigerian government have unchecked control over natural resources. Violence erupts over claims to government revenue and profits from stolen oil. This report urges justice for culpable individuals and proposes a plan to track the source of crude oil.Angola: Oil - Curse or Cure-All? (December 12, 2003)
Angola has a high national debt after almost 30 years of warfare. Oil exports earn substantial revenue, prompting the government to seek partnership with oil companies for oil-backed loans to pay the debt. But the Open Society Institute urges transparency to ensure that untold billions benefit Angola's impoverished population. (UN Integrated Regional Information Network)The African Oil Boom: Peril or Opportunity for Africa’s Poor People? (November 8, 2003)
For poverty-stricken Sub-Saharan Africa, the current oil boom means great opportunity and great peril at the same time. While oil exploitation will set free enormous financial resources that could help reduce poverty, history shows that in many oil-dependent countries, petrodollars exacerbated poverty, rather than reducing it. (Catholic Relief Services)They Made a Mess of Nigeria... (September 11, 2003)
Shell Oil conducts negotiations with the Tanzanian government to procure a license for deep-sea prospecting. Residents of small islands off the coast of Tanzania share their worries about the potential environmental impact. (Guardian)Blind Eye on Africa: Human Rights, Equatorial Guinea, and Oil (August 16, 2003)
As the US seeks alternatives to Middle Eastern oil, the Bush administration looks to strengthen ties with oil-rich West African nations such as Equatorial Guinea. But John Bolender highlights documented human rights violations in that country. (ZNet)Coup on Tiny African Islands Felt in Texas Oil Offices (July 18, 2003)
The island state of São Tomé and Príncipe exists near an ocean oil reserve off the coast of West Africa. A bloodless coup drove its president into exile in Nigeria, where he castigated mutinous army troops for seizing authority over the islands’ most coveted resource. (New York Times)Let's Insist: Africa's Oil Must Benefit Africans (June 3, 2003)
African oil revenue largely benefits corrupt and non-transparent governments. Accountability initiatives such as “Publish What You Pay” can enable grassroots organizations to “follow the money trail” and ensure that the revenue funds development. (Houston Chronicle)Chad-Cameroon: Oil and Poverty Reduction Don’t Mix (May/June, 2003)
Numerous examples show that oil exploitation in Africa has not led to development. The Bretton Woods Project explains why the petroleum project between Chad and Cameroon will not follow the World Bank's optimistic predictions.Navy, Shell Beef Up Security (April 29, 2003)
After a threat by armed militants to destroy a major offshore storage site in Nigeria, Shell has warned of "unimaginable carnage" if the attack goes ahead. The country, whose 120 million people live mainly in poverty, relies on oil exports for more than 96 percent of export revenue. (Vanguard)Shell Oil Accused of Harming Communities (April 22, 2003)
The oil giant Shell is failing to protect communities near its installations in several countries. "The fallout from Shell oil refineries and depots is causing a high incidence of cancer, asthma and skin conditions," says Friends of the Earth. (Inter Press Service)Oil: Blessing Or a Curse? (April 7, 2003)
Angola, Sudan, Nigeria, the Democratic Republic of Congo and most countries with oil or mineral deposits are embroiled in civil wars. Since only a section of politicians benefit from such lucrative ventures, the people of Uganda will continue to consider the existence of oil as a curse. (Daily Nation)Escravos Crude Pipeline Blown Up (April 7, 2003)
Just as Shell and Chevron were preparing to restart production in Nigeria, youths suspected to be from Ijaw communities damaged an oil pipeline with explosives. Ijaw communities had warned they would not allow production to continue until the companies had satisfied their demands. (This Day)Violence Cripples Nigeria's Oil Output (April 1, 2003)
The Ijaw community, the largest ethnic group in the oil-rich delta, is threatening to resume violence. The group demands changes to policies that favor rival Itsekiris who get an unfair share of government money and oil revenues. (Guardian)Ethnic Militants Threaten to Blow Up Oil Facilities (March 25, 2003)
Nigeria's military has attacked and fired indiscriminately on residents in three villages, killing 10 people and injuring 16. Niger Delta youths, angered by years of environmental damage and poverty in oil regions, threatened to blow up 11 oil pumping stations belonging to Royal/Dutch Shell, ChevronTexaco and TotalFinaElf. (Allafrica)With War, Africa Oil Beckons (March 21, 2003)
As the bombs drop on Iraq, US President Bush is quietly courting Cameroon and Chad, both known for pervasive corruption and human rights violations, to secure support for US oil exploitation. Exxon-Mobil and ChevronTexaco have nearly completed an oil pipeline across the two countries, ignoring protests from environmental, human rights, and development advocates. (Los Angeles Times)Shell Ordered to Pay Compensation for Environmental, Economic Damage (March 12, 2003)
The Nigerian House of Representatives ordered Shell to pay US$1.5 billion to Ijaw Aborigines of Bayelsa State as compensation for the untold hardship and environmental devastation it has brought the Ijaws community since 1956. (Vanguard)Oil Exploration Off Sahara Stirs Debate on Ethical Investments (February 17, 2003)
The Norwegian oil company TGS-Nopec is involved in oil exploration in Western Sahara, a territory illegally occupied by Morocco. Main shareholders consider the investment "unethical" and have started to divest from the company. (Afrol)Govt Doubts Legality of Norwegian Exploration in Western Sahara (February 13, 2003)
The Norwegian Foreign Minister has voiced sharp criticism against the national company TGS-Nopec. Consistent with UN legal opinion, he maintains that oil exploration in the illegally occupied territory of Western Sahara should be avoided. (Afrol)Sudan's Oilfields Burn Again (February 10, 2003)
The Sudan government's recent offensive in the Western Upper Nile oilfields jeopardizes the peace in the region. Khartoum's long-time strategy of depopulating oil-rich areas includes the abduction of women and children, gang rapes, burning of villages and other atrocities. (International Crisis Group)Swiss Aid Group Keeps Watchful Eye on Chad Pipeline (February 4, 2003)
Africa's biggest development project, a $3.5 billion pipeline, is already having a negative impact on ordinary people. Human rights groups say the project is damaging water supplies and depriving farmers of their land. (NZZ)Africa Activists Denounce Bush's "Malign Neglect" (January 29, 2003)
The US is increasing its military presence in African oil-producing nations, but ignoring African people who need economic support, health and education. 20 million Africans have already died of HIV, a scourge "far more deadly than terrorist or the alleged existence of Iraqi weapons," says Foreign Policy In Focus.Groups Say US Plan Erodes Africa's Sovereignty (January 28, 2003)
US multinational companies seek to "control Africa’s precious resources, such as oil, gold, diamonds and other minerals and metals", says a coalition of African groups that protest the negotiation of a trade agreement between the US and 38 African nations. (New California Media)Does US Bank Harbour Equatorial Guinea’s Oil Millions in Secret Accounts? (January 21, 2003)
Major US and French oil companies refuse to reveal any information about their payments to the government of Equatorial Guinea. Global Witness accuses such companies of complicity in depriving ordinary citizens of the benefits from oil revenues. (Globalwitness)Oil Boom Enriches African Ruler (January 20, 2003)
Even though Equatorial Guinea's oil fields generate hundreds of millions of dollars, most of its population lives on about a dollar a day. In the last two years, a Washington DC secret bank account received from $300 to $500 million from Equatorial Guinea's oil revenues. (Angeles Times)US Quest for Oil in Africa Worries Analysts, Activists (January 13, 2003)
After closing its embassy in Equatorial Guinea for human rights concerns, the US will reopen it because of oil discoveries. Anxious to avoid dependence on Middle East oil, the US closes its eyes to the most corrupt African regimes. "We're not running a church. We're running a great nation," said an US official. (Angeles Times)Big Oil and James Baker Target the Western Sahara (January 9, 2003)
In tandem with important oil discoveries in West Sahara, the US has taken steps to legitimize Morocco's illegal occupation of the African country, in violation of international law and UN resolutions. Furthermore, by declaring the Polisario Front a terrorist organization, the Bush administration will pave the way for US oil interests. (All Africa)The New Gulf Oil States (January 8, 2003)
Pretending to be discrete in its ambitions, the US increasingly intervenes in oil-producing countries in Africa. Following the mistakes made in the Persian Gulf, oil exploitation is used in the detriment of the population. (Le Monde Diplomatique)2002
As Oil Riches Flow, Poor Village Cries Out (December 22, 2002)
ChevronTexaco's giant terminal in Nigeria is surrounded by tens of thousands of Africans who have grown poorer and angrier. The New York Times questions "how long these two worlds can coexist in such proximity without inflaming violence". The company, which operates in 186 countries, pumps much of its oil in places where people live on "less than $1 a day." (New York Times)Forced Transparency (December 15, 2002)
“Publish What You Pay”, a new initiative backed by George Soros, the World Bank and dozens of aid organizations, attempts to force corporations to declare how much money they give to governments to extract natural resources, particularly oil. If implemented globally, this project would significantly raise accountability and increase pressure on corrupt leaders to invest more in social services. (New York Times)The Lure of African Oil (December 9, 2002)
Unlike troubled Nigeria, Sao Tome's relatively stable domestic situation makes its huge unexploited oil deposits very attractive to the US. The Baltimore Sun advises the Bush administration to guarantee that all residents share of oil wealth instead of only dealing with elites.Fueling War (December 05, 2002)
Oil, diamond and other natural resources too often fund conflicts. Some 5 million people were killed and 15 to 20 million were displaced in resources wars in the 1990s. (Christian Science Monitor)Mineral Wealth Fuels Africa's Most Protracted Wars (November 27, 2002)
Despite UN warnings, Africa's enormous mineral wealth, especially diamonds and oil, continue to fuel diverse conflicts and instability in numerous countries. (Agence France Presse)French Oil Giant Accused of Myanmar Abuses (November 2, 2002)
TotalFinaElf, the French oil company that operates the Myanmar's pipeline with the US oil company Unocal again stands accused of human rights abuses. Asia Times observes that TotalFinaElf's prosecutors have presented "a sad litany of charges of bribery and abuse ranging from Southeast Asia to Africa."Black Gold (October 24, 2002)
While ordinary African people have benefited little from oil, big new oil discoveries off the African west coast excite US oil companies. Oil constitutes the US's only interest in the region. (Economist)Uncle Sam's Crude Solution: Our Expensive, Deadly Role as Global Oil Police (October 23, 2002)
US interests around the world start and end with oil. US policies in the Middle East, Asia, Latin America and Africa revolve around billions of dollars in contracts, corruption and hypocrisy. (Village Voice)The Niger Delta: No Democratic Dividend (October 22, 2002)
Both the Nigerian government and oil companies remain complicit in many human right violations with utter impunity. This Human Right Watch report recommends the creation of a binding code of conduct for multinational oil companies headquartered in the G8 or EU countries. (Human Rights Watch)World Court Rules for Cameroon in Prolonged Oil-Land Border Dispute With Nigeria (October 11, 2002)
The ICJ decided that the oil-rich Bakassi Peninsula belongs to Cameroon. Though both countries agreed to accept the ruling, they also strengthened their military presence on either side of the border. The importance of the ruling comes from the fact the region holds “enough oil to change the mix of supply from West Africa or to shake up global markets,” reports the New York Times.The Militarization of West Africa (August 2, 2002)
A fact-finding mission led by Europeans and US officials to West Africa involves, from the outset, plans for tighter military cooperation. However, the true reason behind such interest is the “energy-hungry” strategic concern of the West on a “world-class oil producer region.” (Stratfor)Corporate Secrecy Oils the Wheels of Poverty (June 20, 2002)
The links between poverty and the exploitation of natural resources have become widespread knowledge. Multinational oil companies working in developing countries refuse to publish what they pay, thus adding to a vicious cycle of corruption which harms the civilian population. (International Herald Tribune)Western Sahara: Numbered Days (June 13, 2002)
The US and France grow impatient to legitimize Morocco’s annexation of Western Sahara through a Security Council resolution, thus securing US and French oil industry interests in Morocco. An Australian oil company remains the Saharawis’ only ally and leverage. (The Economist)Bakassi: 'Yaounde Has the Might, Will for War' (February 21, 2002)
A dispute over the oil-rich Bakassi peninsula threatens to cause a military confrontation between the neighboring countries of Nigeria and Cameroon. Cameroon hopes the territorial dispute can be resolved through impending arbitration at the International Court of Justice. (This Day)UN to Rule on Moroccan Oil Deal in Western Sahara (January 24, 2002)
UN experts are looking into the legality of Moroccan oil exploration licenses off the disputed coast of Western Sahara which produced heavy protests from the nationalist Polisario front in October 2001. According to a US Geological Survey, estimated oil and gas resources off the Saharan coast are substantial. (Afrol News)Sudan and Russia Forging New Ties Around Oil and Arms (January 22, 2002)
Russia signed an oil-for-arms deal with Sudan, in an effort to enhance its influence in the region. The government of Sudan undoubtedly makes the deal in an effort to modernize its army and suppress the separatist movement in the South. (Stratfor)Nigeria's Economy Dominated by Oil (January 16, 2002)
A general strike against rising fuel prices threatens to paralyze the Nigerian economy and undermine stability. Rising fuel prices cause outrage amongst Nigerians due to the widespread perception that the country’s oil wealth has been squandered through corruption. (BBC News)2001
Algeria's Economy: The Vicious Circle of Oil and Violence (October 26, 2001)
The International Crisis Group details how oil wealth has contributed to patronage, corruption, civil conflict, and the decreased capacity of the Algerian government to meet the basic needs of the Algerian people. The military elite perpetuate violence to avoid a settlement that would limit their economic and political power.Shell Sues Nigerian Villages (October 22, 2001)
In an ironic twist of fate, Shell has launched a legal suit against several Nigerian villages for alleged damage perpetrated by vandals. Shell's operations in Nigeria continue to be controversial, as the corporation has in the past been associated with environmental degradation and human rights abuses in the Niger Delta. (BBC)Sudan Government Tops List of Those Causing Agony for Oil (October 13, 2001)
This article from the New York Times offers interviews and personal accounts from the civil war in Sudan. They confirm allegations of the Khartoum government's intentional attacks on civilians, forced relocation policies, and the central role of oil in providing the resources and the motivation for sustaining the war.Sudan Civil War Becoming War Over Oil - UN Report (October 10, 2001)
A new report released by the UN asserts that oil extraction in Sudan is fueling the ongoing civil war, thus confirming the allegations of various human rights and church groups. Despite such evidence, the US has allowed the UN Security Council to lift sanctions on Sudan in an effort to gain the cooperation of Khartoum, where Osama bin Laden allegedly resided from 1991 to 1996. (Reuters)Shell Loses N880bn to Ogoni Crisis (October 9, 2001)
Continued acts of violence against the Shell Petroleum Development Company in the Niger Delta have forced the company to shut down operations in the region. Shell's operations continue to be a point of contention, due to prior allegations of its complicity in human rights abuses under the rule of General Abacha. (Vanguard)Rebels Warn Against 'Blood Oil' (September 6, 2001)
Countries of southern and eastern Africa have continued to buy cheap Sudanese oil. In addition the moral implications of purchasing "blood oil," continued payments to Khartoum will undoubtedly protract the ongoing civil war. (Financial Gazette)Angola's Wealth: Stories of War and Neglect (September 2001)
The executive summary of this policy paper by Oxfam illustrates the dynamics of a vicious cycle of oil production, underdevelopment, and conflict. The paper calls for greater transparency on the part of the Angolan government and increased international involvement, in order to ensure that oil revenues are used for development instead of Angola's "economy of war and neglect."Oil Adds Fuel to Unrest (August 23, 2001)
The World Bank's decision to finance the Chad-Cameroon oil pipeline has elicited criticism and protest. Revenue from the project will likely flow to dictator Idriss Deby, who has spent $4.5 million (U.S.) of oil industry money to buy arms and finance his war against rebel guerillas. (NOW)Link Between War And Oil (August 15, 2001)
The Sudanese People's Liberation Army (SPLA) recently launched an attack on the country's most productive oilfield, reinforcing earlier findings on the linkage between oil extraction and conflict. (IRIN)Would Buying Sudan's Oil Undermine Peace Efforts? (July 16, 2001)
Despite the Sudanese government’s record for using oil revenues to wage war against the Christian minority, foreign companies continue to invest in Sudan’s oil sector. (African Church Information Service)Oil Money Supercharges Sudan's Civil War (June 13, 2001)
Although Western governments criticize Sudan’s abysmal human rights record, North American and European companies continue to invest in Sudan’s oil sector, which has fuelled the nation’s devastating civil war. (International Herald Tribune)The Regulatory Void (May 17, 2001)
Christian Aid implicates various European and Asian oil companies in human rights violations in Sudan. The report calls for the establishment of a Global Regulation Authority (GRA) to ensure the accountability of TNCs, but does not clarify which international body would oversee its operation.What’s Behind Nigeria's Military Shake-up? (May 2, 2001)
Nigerian ethnic and tribal groups wish to profit from the country's lucrative oil trade. Controlling the military means controlling the nation's politics and safeguarding oil facilities, thus Obasanjo's pre-emption of any coup attempts. (Stratfor)Boiling Oil (April 12,2001)
The 1967 civil war in Nigeria is often attributed to the politics of oil, and oil continues to play a destabilizing role in the country’s politics. (Economist)US Changing Course? (March 10, 2001)
The African Perspective paints the situation in DRC in the light of the divergent western interests, counting the US oil lobby leading to the support for Angola.Cornered Rebels May Lash Out in Cabinda (12 February 2001)
Will the Angola government in Luanda accept the separatist claim of Cabinda, an oil-rich and strategic region of Angola? As the rebel movement becomes more and more isolated, violence is expected to escalate. (stratfor.com)2000
Oil Riches, and Risks, in Tiny African Nation (July 23, 2000)
Once thought to have no oil, Equatorial Guinea could now be the next Kuwait of Africa. Who will benefit from this new discovery? A local Guinean thinks it is unlikely that the native population will benefit. In an interview he stated, “it's our oil, but it's you Americans who are eating our oil." (New York Times)Africa Should Mull Oil and Diamond Union to End Conflict: Annan (July 10, 2000)
UN Secretary General suggested creating an "African oil and diamond union" modeling after the European Union. He described the EU as the "world's most successful conflict prevention mechanism." (Agence France Presse)Sudanese Squabble Over Oil Revenues (July 2000)
Rival rebel factions are uniting in an effort to shut down the oil fields in the southern region of Sudan. Southern rebels insist that the $1.2 billion a year generated by the pipeline will be spent by the government to fight rebels instead of contributing to development. (Africa Analysis)Buckee Says Talisman Will Stay In Sudan Despite Offers For Stake (June 20, 2000)
Talisman will remain in Sudan! The head of Talisman Energy Inc., Jim Buckee, refuses to pull out of Sudan despite world-wide criticism.(Calgary Herald)Sudan: The Human Price of Oil (May 2000)
Link to Amnesty International's report detailing the background of the Sudanese conflict and illustrating the human rights violations that accompany the extraction of oil in the Sudan.Spoils Of War (March 15, 2000)
An article from the Nando Times pointing out the difficulty of stopping a conflict, like the one in Angola, that is highly profitable for a number of oil and diamond TNCs.Oil Giants Once Again Accused of Abuses (January 27, 2000)
Oil TNCs found guilty in Nigeria of "working with abusive military and destroying the environment, livelihoods and public health in the oil-rich Delta region." (Interpress Service)1999
A Crude Awakening (December 5, 1999)
A Global Witness report discussing "How Angolan State corruption and the lack of oil company and banking transparency has contributed to Angola's humanitarian and development catastrophe."Sudan: Oil and War (October 9, 1999)
A Canadian company, Talisman Energy, is complicit in empowering an illegal regime in Sudan which terrorizes civilians. The article includes an eight-point indictment of Talisman and calls for their withdrawal from the region.(APIC)The Angolan Civil War Part 1: Oil (October 8, 1999)
Government forces responsible for Angola's civil war get their funding from oil revenues. This issue of Drillbits and Tailings examines the relationship between resource extraction and civil war.Fight for Sudan's Oil is Killing Civilians (October 5, 1999)
Toronto Globe and Mail article about oil companies operating in Sudan - a country where civil war continues to rage.
Middle East
2005
Matt Simmons’ Bombshell: The Impending Decline of Saudi Oil Output (June 27, 2005)
The Bush administration and US oil experts base their energy strategy on one simple mantra: Saudi Arabia’s oil fields can satisfy rising demand. But author and oil investor Matt Simmons refutes these claims soundly, arguing instead that Saudi Arabian oil output will inevitably decline in the near future. In this book review, Michael Klare warns that no other country has the reserves to match Saudi oil production. Ignoring such signs could fuel conflict and further devastate the world economy. (TomDispatch)2004
Beijing Looking To Tehran to Fuel Its Booming Economy (November 10, 2004)
China's "booming" economy means greater energy needs, and oil imports have doubled in the past five years. Beijing seeks energy agreements with Tehran, in part to "ease its dependence on relatively pro-American governments" in the Middle East. Iran needs both foreign investment and a political ally in its battle with Washington over nuclear development. China is a veto-wielding member of the Security Council, and after signing oil and gas agreements with Tehran, has spoken against bringing Iran to the Security Council over its uranium enrichment program. (Radio Free Europe/Radio Liberty)Why the United States Supports the State of Israel (October 7, 2004)
This Power and Interest News Report article asserts that Washington uses Israel as a "US battleship in the Middle East" in order to stop oil-rich countries such as Iraq and Iran from becoming regional powers who could threaten oil resources for the West. Israel fears that a strategically important, oil-rich country like Iran could "dwarf Israel's power and suppress [its] foreign policy leverage in the Middle East." Both Israel and the US have threatened Iran, and demand for oil combined with Tehran's growing power could spark a military struggle or a new arms race in the region.Irrelevant? OPEC Is Sitting Pretty (October 3, 2004)
OPEC is set to grow increasingly important in the world energy market due to its grip on the majority of the world's oil reserves. The five Persian Gulf members - Saudi Arabia, Kuwait, the United Arab Emirates, Iraq and Iran - are the richest in reserves. As alternative sources dwindle and "oil from the gulf [becomes] steadily more indispensable to the American economy," the US will find its relations with the Middle East more complex and difficult. (New York Times)As Threats to Oil Facilities Rise, US Military Becomes Protector (June 30, 2004)
Claiming to protect offshore oil wells from sabotage by terrorists, the United States assumed the role of “oil police” in the Persian Gulf. The Wall Street Journal argues that the US Coast Guard’s presence in the Gulf is only one part of a “globe-spanning and open-ended US campaign” to guard the world’s oil resources, a campaign that involves the work of US military forces in the Caucusus, Columbia and Yemen.Dumping Crude (March 12, 2004)
This article argues that US insatiable need for oil from oil-rich regions, and its desire to protect its self-interest, have contributed to the political instability and conflicts in these regions, in turn fueling global terrorism. (TomPaine.com)Conservatives Use Oil to Keep Heat on Mideast (March 9, 2004)
In order to secure its long-term oil interests and to weaken the Middle East's oil dominance, Washington conspired to launch a "cutting world oil prices campaign" and to steer away from the region's oil. This article argues such a campaign could eliminate the possibility of an Arab oil "threat" to the US and therefore strengthen US hegemony in the region. (Inter Press Service)Running Out of Oil - and Time (March 7, 2004)
This Los Angeles Times article contends that increased competition between major global powers for scarce oil supplies will potentially lead to "a new kind of political conflict—the energy war." Although oil production has not yet reached a critical level, the author urges countries to actively seek alternatives to oil to avoid possible future conflicts over these resources.In Quest for Energy Security, US Makes New Bet: on Democracy (February 4, 2004)
With US companies trying to secure long-term energy supplies, Washington has changed its Middle East strategy from maintaining political stability in the region to changing the political system in individual countries. The US uses the war on terror as an excuse to put “reliable” regime into place, as the case of Iraq has illustrated. (Wall Street Journal)US, China Are on Collision Course Over Oil (February 2, 2004)
With China's increasing dependence on oil supplies in the Middle East, the US has perceived China as a major competitor for both energy and influence in the region. Washington is pushing Beijing to shift from oil into other sources of energy so as to reduce future conflicts, and to ensure continued US hegemony in the region. (Los Angeles Times)2003
This report, entitled "Reopening of Upstream Oil and Natural Gas to Foreign Interests: Views and Actions of Iran, Iraq, Kuwait and Saudi Arabia," is the result of a fourteen-month investigation by International Petroleum Enterprises (IPE), an independent research and consulting firm. It analyzes the policy views and potential actions of the key oil producers in the Persian Gulf regarding the reopening of their upstream oil and natural gas to foreign interests.Is Syria next on the US hit-list? (April 14, 2003)
The US Secretary of Defense, Donald Rumsfeld, has tried to restart an old pipeline that ran from Iraq to Israel during the mid-1980, but all attempts have failed. This article explains why the US needs a "regime change" in both Iraq and Syria. (Hindustan Times)As Regime Crumbles, Battle for Oil Begins (April 11, 2003)
"It's their oil; it's their resources," says US Vice-President Dick Cheney, while at the same time his former company landed a £600 million contract for initial oil field repairs. A former head of Shell's US subsidiary will likely become the chief adviser to the Iraqi oil industry. "Such a US-led approach troubles some oil analysts," reports the Telegraph.In the Pipeline: More Regime Change (April 5, 2003)
Israel seriously plans to restart an oil pipeline that once transferred oil from Iraq to Israel. According to an Israeli minister, the US would back this project, but its realization would also require Syria's consent, putting Damascus on the list of US targets. (Asia Times)War Could Be Big Business for Halliburton (March 23, 2003)
When it comes to making money from a war in Iraq, few can match the firepower of the company once headed by Vice President Dick Cheney, says Reuters. The company, which develops oil fields and drills for oil all over the world, has well-established connections and government relationships.2002
Agreement On US 3.2 Billion Gas Pipeline Project (December 28, 2002)
Pakistan, Afghanistan and Turkmenistan signed an agreement for a gas and oil pipeline passing through the three countries. After pursuing the project for years, US oil giant Unocal reached a deal with Afghanistan's current president, a former Unocal consultant. (Truthout)Growing US Need for Oil From the Mideast Is Forecast (December 26, 2002)
Recognizing US dependence on foreign sources of oil, governmental studies predict more reliance on oil imported from the Persian Gulf for 2020 and acknowledge the need to diversify the US energy policy. (New York Times)US Oil Still Pours From a Mideast Barrel (October 22, 2002)
This article analyzes different sources of oil and gas for the West, concluding that as demand increases, there will be more reliance on Middle Eastern oil. (New York Times)From the Barrel of Oil (October, 2002)
Geopolitics increasingly involves control of natural resources, as industrialized countries and their rich oil companies depend on oil to fuel the global economy. Down to Earth shows how “oil politics dictates international relations.”War on Terrorism Has Oily Undercurrent (September 3, 2002)
This article argues that competing commercial interests hide behind the war on terrorism. While the public, through the media, see warn-torn people and land in Afghanistan, energy companies see potential profits. (Seattle Post-Intelligencer)West's Greed for Oil Fuels Saddam Fever (August 11, 2002)
The US attack against Iraq is turning into an oil war, argues The Observer. But would ousting Saddam safeguard Iraq's oil for the West? Not likely.Iraq and the New Great Game (August 5, 2002)
Rahul Mahajan writes that Washington’s reasons for attacking Iraq, such as the threat of weapons of mass destruction, are not the US top priority. “The US seeks nothing less than the establishment of complete control over all significant sources of oil,” he argues. (CommonDreams.org)The Pressure Is On to Play the Oil Card (April 10, 2002)
Countries such as Iraq, Libya, and Iran are threatening to cut off oil production to protest Israeli incursions into Palestinian territory. If many other OPEC countries follow suit, the result could be destabilizing for the world economy. (Los Angeles Times)2001
Saudi Stability on Borrowed Time (December 14, 2001)
Recently declining oil revenues threaten the current Saudi regime, which is sustained largely on petrodollars and America military intrusion. As economic stagnation, declining oil revenue and reduced government spending fuel social frustration, dissatisfaction could quickly give way to upheaval. (Stratfor)
Russia and Balkans
2002
Balkan Oil War (February 25, 2002)
Croatia is restricting the transit of oil across its territory to obstruct Bosnia’s purchase of cheap Slovenian oil. Croatian authorities hope to force Bosnia to purchase more expensive Croatian oil supplies. In retaliation, Slovenia is filing a complaint with the WTO and Bosnia is boycotting Croatian oil. (Institute for War and Peace Reporting)
Europe
2003
Dirt and Diamonds in Elf Trial (April 2, 2003)
Thirty-seven defendants from the company that once was France's biggest company face trial involving the embezzlement of some $US200 million. Elf's executives paid tens of millions of dollars of bribes to secure contracts in oil-rich countries. (Nzoom)2002
Turkish Oil Project Raises Human Rights, Governance Concerns (September 17, 2002)
The World Bank plans to support an oil pipeline project with the help of unlimited Turkish security protection against “terrorists.” Kurdish human rights groups argue that Turkey may use the ambiguous language of terrorism to commit human rights violations. (Bretton Woods Project)
Central Asia
2005
Al Qaeda, US Oil Companies, and Central Asia (July 30, 2005)
In an excerpt of his book entitled "The Road to 9/11," author Peter Dale Scott examines how the US has consistently used the resources of drug-trafficking Islamic jihadists to further its own ends, particularly with respect to oil. Scott focuses on the “three way symbiosis of Al Qaeda, oil companies, and the Pentagon," arguing that, thanks to Al Qaeda, US bases have sprung up close to oilfields and pipelines in Uzbekistan, Tajikistan, Georgia, and Kosovo. (Center for Research on Globalization)2004
Caspian Region Likely to Remain Critical for Foreseeable Future (January 12, 2004)
Washington and Moscow follow closely developments in the Caspian region because of its large oil and gas reserves. Both try to influence the region “down the path that most closely conforms to their economic and geostrategic interests.” (Power and Interest News Report)2003
The Axis of Oil - How a Plan for the World's Biggest Pipeline Threatens to Wreak Havoc (October 28, 2003)
The US wants to construct an oil pipeline stretching from Russian borders to the Mediterranean Sea to lessen dependence on Middle Eastern oil reserves. Critics to the plan point out that the pipeline would cause environmental havoc and could fuel ethnic tensions in the countries along the route of the pipeline. (Independent)Globalization to Azeris Means Oil and War (June 26, 2003)
Azerbaijan's oil reserves and border with Iran have increased its profile in Washington, but Azeris fear increased US involvement will reinforce the autocratic government and rekindle conflict with neighboring Armenia. (Moscow Times)Big Oil's Dirty Secrets (May 8, 2003)
The Economist reports that bids for oil contracts in Kazakhstan may have been tainted by bribery. An investigation of big oil firms raises other transparency issues in the notoriously opaque industry, including its indifference toward abusers of the environment and human rights.A Wilful Blindness (March 11, 2003)
As in Afghanistan, the US has increased its military presence in many places to further its "war against terror." Now, under the same pretext, the US government exercises strategic control over almost all the world's major oil producing and transporting regions. (Guardian)Oil Giants Get Slick with Bid for New Image (February 2, 2003)
Oil is a dirty business, says the Guardian. "It always has been an unhealthy cocktail of coups, cartels and carbon dioxide". All the soft-focused ethical campaigns in the world cannot detract from the fact that the major oil firms don't do enough. (Guardian)2002
Kazakhstan: Oil Money Threatens to Make Killing Fields (December 4, 2002)
The government of Kazakhstan is developing what will be the second largest oil field in the world, despite growing opposition from local people. To the Kazakh government, the prospect of immense oil profits outweighs the project’s enormous human and environmental risks. (The Guardian)Asian States Battle over Caspian Wealth (December 1, 2002)
The Caspian Sea region shared by Russia, Kazakhstan, Turkmenistan, Iran, and Azerbaijan is quickly becoming one of the most important, and politically complex, oil areas in the world. (YellowTimes)Afghanistan Aims to Revive Pipeline Plans (May 30, 2002)
Turkmen, Pakistani, and Afghan leaders, meeting in Islamabad, revived the gas pipeline plans, which some saw as the cause for the US Afghanistan campaign. Although Unocal denies plans to resume its involvement, pipelines remain central to US interests and to Afghan domestic politics. (Los Angeles Times)Pipeline Politics Taint US War (March 18, 2002)
The Chicago Tribune analyzes the widespread belief overseas that US military deployments in Central Asia are mostly about oil.Strange Boardfellows (January 2002)
US-based UNOCAL, described as the "bottom feeder" of the oil business, has frequently been associated with unsavory regimes. Eric Scigliano of the Nation discusses the company's history and its relationship with the Taliban.2001
Caspian Security Under Threat (November 8, 2001)
The struggle to control the Caspian Basin's vast oil and gas riches could become violent due to the destabilizing impact of the US-led war in Afghanistan. (Jane's Information Group)The Oil behind Bush and Son's Campaigns (October 5, 2001)
Just as the Gulf War was about oil, the new conflict in South and Central Asia is no less about access to the region's abundant petroleum resources. (Asia Times)Central Asia's Great Game Turned on its Head (September 25, 2001)
Central Asia's strategic importance and its vast unexplored oil reserves have long made it a source of conflict between rival superpowers struggling for dominance. This article illustrates how oil interests have influenced foreign policy in the region, particularly with respect to the US's role in bringing the ruling Taliban to power in Afghanistan (Reuters).Potentially Massive Oil and Gas Find in Tibet (September 5, 2001)
The discovery of oil and gas deposits in Tibet provides China with further incentive to tighten its grip on its rebellious Western provinces. Rather than having the effect of "quelling separatist sentiments" as Stratfor suggests, the acceleration of China's "Go West" policy is likely to increase militarization of the region, exacerbate tensions, and heighten the repression of minorities.Storm in a Precious Teacup (August 2, 2001)
An Iranian naval vessel forced two joint British-Azerbaijani oil exploration ships away from a disputed zone of the Caspian Sea. Disagreements over how to divide up contested oil threaten the long-run stability of the region. (Economist)Bush Encourages Resolution of Conflict in Oil-Rich Region (April 10, 2001)
Bush is trying to play a mediator role in the 13 year old conflict on oil between Azerbaijan and Armenia. Of course, the US has some interest in the resolution of the conflict, since the region could be major oil supplier for Western countries. (Reuters)2000
Raiding the Treasure House: Oil and Mineral Extraction in the Colonization of Tibet (October 13, 2000)
This report by Project Underground describes China's ongoing attempts to colonize its western provinces. The new wave of resource extraction will aid the Chinese government's population transfer policy, heighten the marginalization of Tibetans in their own country, increase militarization in an already volatile area, and promote environmental degradation.1999
Petrodollars Behind the Chechen Tragedy (December 7, 1999)
Russia's unwillingess to settle the ongoing Chechen war is undoubtedly related to Chechnya's role as a vital transit route for oil from Central Asia. (Interpress Service)
Southeast Asia
2007
Divided and Embattled East Timor to Elect a President (April 9, 2007)
Independent East Timor still suffers from malnutrition and food shortage. Meanwhile, the government keeps US$1.2 billion from oil revenues in a US fund for “future use”. The unused money became a priority issue in the elections. President Jose Ramos-Horta stated “Democracy will not work if the people are hungry." (New York Times)2004
Oil and Gas Impasse Sours Relations (December 3, 2004)
Tensions remain high between Australia and East Timor over control of their sea border, which dictates how the two will divide oil and natural gas profits. East Timor's Foreign Minister Jose Ramos-Horta calls for a non-binding hearing from the International Court of Justice on the matter, but Canberra has thus far refused. Observers say Australia signed agreements benefiting East Timor just long enough for international attention to recede, and now seeks to exploit its poorer neighbor's natural resources riches. (Inter Press Service)Australia's Offshore Oil Grab in the Timor Gap (December 2004)
Le Monde Diplomatique details the long-standing dispute over maritime frontiers between Australia and East-Timor and exposes an intricate web of state and corporate oil interests in the boundary negotiations. Following East Timor's independence in 2002, the United Nations Transitional Administration renegotiated the maritime boundaries fixed under Indonesian occupation. Oil companies pressured East Timor to strike an agreement, as Australia threatened to withdraw aid to the UN-administered area if it did not receive a large share of royalties.Australia Casts a Shadow over East Timor's Future (June 3, 2004)
Australia refuses to defer to international law in resolving the sea border dispute with East Timor, claiming it is “exceedingly generous” in giving Dili a huge share of the oil and natural gas resources in the joint development area. Deploring the Australian government’s stance, Senator Bob Brown accuses the government of “behaving like a wealthy neighbour that has jumped the fence and pinched vegetables from the garden of the poor family next door.” (Independent)Timorese Fury at 'Immoral Oil Grab' (April 19, 2004)
East Timorese President, Xanana Gusmao, warns that his country might become another failed state like Haiti if Australia goes ahead with the plan to exploit the oil and gas resources in the disputed Timor Sea reserves. Gusmao stresses that the potential revenue would be crucial to curb poverty, reduce disease and strengthen the democratic process in the country. (Guardian)Australia 'Bullying' East Timor over Oil Revenue (April 19, 2004)
The Catholic Commission for Justice, Development and Peace has accused the Australian government of unfairly seizing the Timor Sea oil revenue to the detriment of East Timor. By refusing to defer to the International Court of Justice for a resolution and deliberately prolonging the boundary talks, Australia has not negotiated in good faith, argues the Commission. (Sydney Morning Herald)Global Wake-Up Call for Australia:Stop Stealing East Timor's Resources and Trampling on Its New Independence (January 26, 2004)
An international NGO has questioned the Australian Government's motives for prolonged negotiations concerning its maritime boundary with East Timor, and has called for Australian recognition of East Timorese resource rights. The NGO claims Australian exploitation has already "mostly depleted" the abundant oil and natural gas which deposits in the disputed Laminaria-Corallina field. (East Timor Action Network/US)2003
Anger in East Timor as Australia Plays Tough over Gas Reserves (October 14, 2003)
After significantly backing East Timor’s struggle for independence, Australia now constitutes the main barrier to Timorese hopes of breaking free from poverty. Australia refuses to adhere to principles of international law, knowing that it would return huge underwater reserves of natural gas to East Timor. (Guardian)2002
Bullet Proof (December/January, 2002)
BP is preparing to build a large liquid natural gas processing plant on West Papua. Given that the island is torn between a corrupt, brutal military with its hands in the illegal resources trade and a growing independence movement, this article argues that BP’s plant could worsen an already volatile political situation. (The Ecologist)Oily Diplomacy (August 19, 2002)
The Bush administration, invoking the war against terrorism, is inappropriately protecting Exxon Mobil, a US company, which did nothing to stop murder, torture and other crimes by security forces guarding its gas fields in Indonesia. (New York Times)US Oil Company Unocal Liable for Human Rights Abuses in Burma (October, 2002)
Human rights lawyers have filed a lawsuit against Unocal, accusing the company of hiring Burmese troops who committed human rights abuses while building a pipeline for the company. The suit “may have a chilling effect on how multinationals operate overseas.” (Corporate Legal Times)2001
Aceh: Megawati's Toughest Test (August 20, 2001)
Prime Minister Megawati of Indonesia has signed into law a provision granting Aceh an unprecedented level of financial and political autonomy. The ongoing conflict, motivated in part by the desire to control the province's oil resources, has claimed more than 1,000 lives this year. (BBC News)Australia Bows to East Timor Over Oil and Gas Rights (July 5, 2001)
East Timor has reached an agreement with Australia on oil and gas rights in the Timor Sea. The deal represents a huge boost for the impoverished former Indonesian province as it prepares for its first post-independence elections next month. (Independent)RIGHTS: US Oil Giant Sued Over Human Rights Abuses in Indonesia (June 21, 2001)
The Washington-based International Labour Rights Fund (ILRF) sued Exxon Mobil Corporation on charges that Exxon paid and directed the Indonesian government forces who committed atrocities while guarding the oil company’s facilities in Aceh, Indonesia. (One World)UN-Australia Deal Is Near on Timor Oil and Gas (May 21, 2001)
Australia and the UNTAET are struggling to find a new agreement on revenue-sharing rules covering the rich oil and gas area in the Timor Sea. This zone was jointly managed by Australia and Indonesia while ruling East Timor. (International Herald Tribune)Indonesia's Wars Over Riches (March 9, 2001)
By providing the Indonesian government with the incentive and the justification for heightening its military presence in the province, oil and natural gas in Aceh have helped to fuel the ongoing separatist conflict. (Christian Science Monitor)2000
East Timor's Resource Curse? (November 30, 2000)
Dependence on natural resources can severely harm a country both politically and economically, as demonstrated in Angola, Equatorial Guinea and Venezuela, and even send it spiralling into conflict. With East Timor about to enter the oil market, can it avoid this grim path? (FEER)
South America
2005
Oil Fuels Suriname-Guyana Border Clash (July 5, 2005)
Once a “relatively worthless realm of farmers and poor fisherman,” the contested region between Guyana and Suriname has fallen victim to a complex legal battle over oil. These neighboring South American countries now “share a host of social problems intensified by the risks and promises of oil wealth and by the avaricious focus of international corporations jockeying for control,” says CorpWatch. Regardless of who gets drilling rights, “oil has seldom benefited the local population,” and the unwillingness to compromise - along with delays over court rulings - will stunt the countries’ growth and development.2004
Bolivia’s Referendum About More Than Gas (August 30, 2004)
This article points to the tensions underlying a July referendum endorsing the development of Bolivia's gas reserves. At play are issues of "democracy, race, regionalism, and free-market reforms." The majority Indian population has doubts that they will see the benefits of development, especially after the free-market policies of the 1990s. Bolivia faces the challenge of creating "workable laws, acceptable both to domestic constituencies and foreign investors." (Foreign Policy in Focus)Colombia's Oil Pipeline Is Paid for in Blood and Dollars (August 20, 2004)
Colombian President Alvaro Uribe has designated the conflict-ridden Arauca region a "special security zone." Both the US government and Occidental Petroleum Corp. have contributed funds to army forces there. However, when "the army, directly or through its collaboration with paramilitary groups, targets health workers, trade unionists, teachers, journalists and human rights defenders and forcibly displaces indigenous and peasant communities who lived near the pipeline," many wonder whose security is at stake. (Guardian)2003
Seeking Balance: Growth vs. Culture in Amazon (December 10, 2003)
Ecuador's oil reserves may produce 850,000 barrels per day if the Ecuadorian government and oil companies have their way. But indigenous communities near the reserves worry about the environmental impact and wonder if their impoverished villages will see any oil revenue. (New York Times)Ecuador: Texaco Leaves Trail of Destruction (November 30, 2003)
From 1972 to 1992, Texaco exploited the oil fields in Ecuador, pumping 1.5 billion barrels of oil. But the company did not use disposal methods that became common standards in the United States in the 1970s and 1980s. Instead, it dumped its waste directly into streams and the jungle, destroying land, sickening residents and contributing to the demise of indigenous tribes. (Los Angeles Times)Bolivia: Recuperating Natural Resources, Rebuilding a Nation (November 1, 2003)
Bolivia is one of the poorest countries in South America, yet transnational corporations seek to export its natural gas to the US and Mexico. This article from the Interhemispheric Resource Center tracks Bolivian protests against this possibility, and presents the demands of the major campaigners.Q & A on Bolivia (October 17, 2003)
People in Bolivia mobilize en masse to oppose the government’s plans of selling the continent’s second-largest natural gas resources to a consortium of multinational energy companies. They worry that this new round of exporting valuable natural resources will once again benefit only a few people, instead of turning into real development. (ZNet)Venezuela: The Other Side of the Story (August 29, 2003)
Once again the US government seeks regime change in an oil-rich country. This article looks critically at US involvement in Venezuela and argues that the US media distorts information in favor of the Venezuelan opposition. (International Herald Tribune)2002
Oil Factor Could Be Tipping Point in Venezuela (December 10, 2002)
Oil Factor Could Be Tipping Point in Venezuela (December 10, 2002) The current Venezuelan crisis involves mostly oil-related interests. The US, which relies on Venezuela for some 13 percent of its oil imports, orchestrates behind the scenes efforts to obtain Chavez's resignation. (Christian Science Monitor)Texas Firms Line Up US Aid in Peru (November 20, 2002)
Two Texas oil companies with strong ties to the White House, Halliburton Co. and Hunt Oil Co., are pursuing an environmentally destructive oil pipeline project that would cut through the Peruvian Amazon rainforest. US support for the project would expose oil companies’ relentless political pull in Washington. (Washington Post)Oil inflames Colombia's Civil War (March 5, 2002)
This article criticizes a proposed US aid bill which is aimed at helping the Colombian military protect oil pipelines in the Aruaca region. As Arauca Mayor Jorge Cedeño points out, instability will continue in the absence of social development, as guerillas offer an attractive alternative for the disaffected rural poor. (Christian Science Monitor)U.S. Plan Aims to Stem Pipeline's Flow of Trouble (February 6, 2002)
US officials describe a new aid package to Colombia as part of a broader effort to “foster democracy and the rule of law in Colombia.” However, the resulting increase in military spending to combat rebels and defend oil pipelines may actually undermine these objectives. (Los Angeles Times)2001
Venezuelan President Near the Edge (November 1, 2001)
Revenues from oil windfalls have enabled Hugo Chavez to sustain his regime with payoffs to military officials and public spending. Plummeting oil prices threaten to force a face-off between Chavez, with his definitively authoritarian tendencies, and an increasingly dissatisfied military and populace. (Stratfor)Occidental Petroleum's Cozy Relationship With Colombian Military Turns Fatal (June 30, 2001)
New evidence indicates the active collaboration between Occidental Petroleum (OXY) and the Colombian military in the 1998 Santa Domingo massacre. OXY's Colombian operations continue to be a magnet for violence, highlighting the link between oil extraction and militarization. (Drillbits and Tailings)Oil Rigged (February 2001)
Authors from the Resource Center of the Americas illustrate the pivotal role of oil in determining US aid policy to Colombia. Troubling questions surround the cost of further militarizing a conflict that has killed tens of thousands and displaced 2 million since 1985.2000
Tensions Spark Over Ecuadorian Oil Attacks (December 19, 2000)
In the latest of a series of incidents involving Ecuador’s oil industry, a pipeline was bombed, with accusations for the incident pointing towards terrorists from Colombia. The attacks "may be an effort to prevent the construction of a new oil pipeline or to extort concessions from Quito." (Stratfor.com)Venezuela Will Grant Oil Concessions in Disputed Essequibo Region (July 26, 2000)
Venezuela and Guyana both claim rights to the resource rich Essequibo region which has been a contentious issue for many years. UN officials have been mediating the boundary dispute and hope to reach an agreement during the Millennium Summit in September. (Associated Press)
North America
2003
Don't Worry Canada, We Still Want Your Oil (April 4, 2003)
After Canada officially refused to support the war on Iraq, US Ambassador Paul Cellucci made the conciliatory remark that Canada is a bigger and more reliable source of oil than Saudi Arabia in the post-9/11 world. According to this article, Cellucci's remarks reveal underlying US interests, and point to the kind of friendship that should be avoided. (Straight Goods)Beyond Petroleum, Or Beyond The Pale? BP Left Out In The Cold (January 23, 2003)
Despite the fact that oil company BP is trying to convince the world that it cares about pollution, global warming, labor rights, and the environment, major shareholders and advocacy groups see through the slick campaign, and some are considering dropping the company's shares. (Independent)Tables and Charts
Major Oil Companies Among Largest Transnational Corporations
Table
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