The politics of oil is dirty
Aug 15, 2017 , http://www.kaieteurnewsonline....ics-of-oil-is-dirty/
Oil has made many nations rich. But before those nations became rich, the multinationals engaged in the production of oil became far richer.
Oil wealth is not free. It comes at a terrible price. In many instances, it came at the price of the loss of freedom and the slaughter of the innocent.
In 1995, the world awoke to the dirty politics of oil when environmentalist and writer Ken Saro-Wiwa of the Ogini tribe of Southern Nigeria, and eight others were executed by the Nigerian military because of their opposition to the environmental damage which the operations of Shell, an oil multinational was causing in the delta. Shell was accused of conspiring with the Nigerian military in the executions.
Fourteen years later, and after sustained international condemnation and local opposition, Shell made a large settlement of US$15.5 M, a pittance for the oil giant, but symbolically a massive victory for those who wished to call attention to the dirty alliances and methods which multinationals employed in their greed to get their hands on the oil of other countries.
It took the death of Ken Saro-Wiwa to open the eyes of the world to the environmental destruction which oil companies were causing in other countries. This led to greater vigilance by environmental activists over oil operations. The death of the Ogini activist also showed the dirty politics which can result between oil companies and little dictators. Ken Saro-Wiwa exposed that dirty politics.
The Kaieteur News is now reminding Guyanese that they must be vigilant against possible corruption involving oil companies. The newspaper has been highlighting some of the controversies in which Exxon Mobil has found itself implicated, including in Equatorial Guinea whose people thought that oil would bring them riches, only to find that oil came with its own problems.
Guyana must be careful. The government should consider a confidential briefing, similar to what the Ramotar administration has with APNU, in relation to the Amaila Falls Hydroelectric Project. The Ramotar administration was unwilling to make public certain facts because it was still in negotiations with a major America company which would have been responsible for the deal. The opposition had concerns. They needed answers. In the interest of balancing confidentiality and the release of information to satisfy major stakeholders that Guyana was not being shafted, a confidential briefing was held.
The government of Guyana, for some unexplained reason, is not prepared to make public the revised contract it has signed with Exxon Mobil. It however has said that it has doubled the royalty from 1% to 2%. The world average is around 8% so there is some need for the government to justify this low rate of royalty. This can be done in a confidential briefing.
The fallout from the problems in the oil industry has been a deliberate attempt in the developed world to ensure that oil companies and the governments with which they did business operate in a more transparent manner. It does seem however that the Guyana government is moving in the opposite direction. For some undisclosed reason it is not prepared to disclose the terms of the contract it has signed with Exxon Mobil. It must state why.
The public does not seem to be worried. Like the people of Equatorial Guinea, they must feel that oil is going to make all Guyanese rich so why bother to question the terms of the contract. They should learn from what has happened in that country. They should learn about the channels through which oil payments were made. They should understand the risks involved, one of which is Guyanese can end up being empty-handed by the time the oil runs out.
Guyanese had better wake up and demand that the Granger administration level with them on the contract. The oil belongs to the people. It does not belong to the Cabinet. The people should have information that would convince them that nothing crooked is afoot.