Nigeria: Oil Spills, Natural Gas Flares, and Bunkering

By Mohammed Hamid Mohammed
Nigeria: Oil Spills, Natural Gas Flares, and Bunkering

DEVELOPMENTS
On January 26th, a group of eco-activists draped a banner designed to look like thick oozing oil over the façade of Shell Headquarters in the Hague. It read, “Shell, let’s go clean Nigeria!”, and was hung on the same day that the Dutch parliament scheduled a hearing to examine what Amnesty International and environmental groups alleged were the extremely hazardous environmental practices of the company. Shell simply denied the accusations, and went as far as declining to pay the $100 million fine to support victims of its operations in Nigeria.

There are many different estimates of the full damage that oil spills or natural gas flares have caused in Nigeria– the West African country that exports more than a million barrels a day to the United States. Unofficial estimates show that total oil spills over the last few years dwarf the devastating effects of the BP oil spill in the Gulf of Mexico. And while public rage forced both the U.S. government to take swift action in capping the well, as well as the resignation of BP’s CEO, there has been relatively little attention paid to Nigeria’s oil problem. Few in the West are aware of the oil-soaked fields, contaminated lakes, and smoky skies that, for years, dramatically reduced the life expectancy in the Niger Delta — home to millions of people. Although Shell blames vandalism and theft for most of the spills, a number of their aging pipelines are well-beyond their shelf life and must be replaced. Some are over fifty years old in an industry where most are retired after fifteen years.

BACKGROUND
Known as the Oil Rivers for its plentiful production of palm oil, the Niger Delta now produces most of Nigeria’s fossil oil. Administered as a British Oil Protectorate between 1885 and 1893, and then as the Niger Coast Protectorate, the region covers 700,000 square kilometers in Southern Nigeria, with a current population of thirty one million. Forty ethnic groups speaking 250 dialects claim the area as their home.

The discovery of oil in the Delta coincided with Nigeria’s approaching independence from British colonial occupation in the late 1950s. From the very beginning, oil revenue funded a series of military regimes in close partnership with multinationals like the Royal Dutch Shell Company. But little of that revenue trickled down to the inhabitants of the Delta. In fact, Nigeria’s oil failed to bring any meaningful development to the most populous country in Africa, despite the booms of the 1970s and 1980s.

The oil wells and poorly-maintained infrastructure waste a significant amount of oil; and they also wreak considerable damage to the environment. Every year, for example, Nigeria loses 2.5 billion dollars worth of natural gas — amounting to forty percent of the consumption of the entire African continent — to flares that have become permanent fixtures in the Delta, burning unchecked and filling the sky with heavy smoke. Regardless of new oil extraction techniques and concerns for serious environmental impact, negligible effort is exerted to inject the associated gas (AG) back into the ground, or store it safely.

The illegal business of bunkering, or oil theft, is another phenomenon that besets the Nigerian oil industry and accounts for the loss of billions of dollars a year, according to Shell. Opportunistic gangsters explode or drill holes into oil pipes, selling the crude in Eastern European black markets without regard to additional spills, dangerous fire, or risks to human life. A few even go to the extent of stealing from the oil wells directly, often within full knowledge of corrupt government official (an example of this was the court-marshalling of two Nigerian Navy Rear Admirals, in 2006).

Decades of spills and smog have made the Delta nearly uninhabitable. The population has born the brunt of oil spills without any benefit, and growing outrage has led to clashes with the Government of Nigeria. Several protests have been crushed violently, resulting in many deaths and the bulldozing of scores of villages. One such case was the arrest and tragic death of the Nigerian playwright and Goldman Environmental Prize Winner Ken Saro-Wiwa. Over the years, simmering resentment has given rise to militant rebel organizations. These groups have begun kidnapping expatriate oil engineers and organizing sabotage, currently making the Niger Delta one of the most dangerous places in the world.

ANALYSIS

As parts of North Africa and the Middle East slide into instability, the price of oil continues to soar. Exploration of much-touted alternative energy sources still remains distant. In the context of the tense political landscape and uncertain energy future, it might seem less tenable to talk about ethical oil sourcing. But, the silence surrounding the sub-standard practices of oil production in Africa will not likely continue. Speaking against oil spills, contamination of water, and destruction of farmlands will no longer be left to vocal activists, either. The TV cameras that brought us images of gushing oil and upended communities during the BP oil spill — which spurred the immediate response of the U.S. Government –have to yet train their lenses on the colossal calamities unraveling every day in the Niger Delta. But that will likely change.

It is tempting to put all of the blame on oil companies. Of course, they have played key roles in the deterioration of the environment in many countries and, undoubtedly, they should pay their share to reverse the immense harm their activities have inflicted on the environment. Governments should also take firm action and ensure the resources of their nations are properly put to use, without abuse by anyone. The most important issue, however, pertains to the creation of better international production and consumption standards strictly enforced by global entities. Without a concerted global intervention — including hefty fines — millions will continue to sacrifice their livelihoods to satisfy our compulsive dependence on oil, as the environmental effects continue to worsen and affect us globally.

Mohammed Mohammed is the Africas Regional Editor for Foreign Policy Digest.

This post was written by:

Mohammed Hamid Mohammed - who has written 8 posts on Foreign Policy Digest–Know the world you live in.

Mohammed is currently a consultant in International Development, Social Innovation, and Corporate R&D. Most recently, Mohammed held positions at both the Gates Foundation and Intel Corporation – he has worked as a strategist, researcher, design guide, and manager of innovation, with a focus on Africa and the Middle East. In Mohammed’s spare time, he also works with a European and Canadian academic team in the process of designing distance learning systems for students in poor countries. Mohammed holds a Ph.D. from Northwestern University. His academic trainings include performance studies, anthropology, human-computer interaction (HCI), and microfinance.

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