More on Nigeria Oil Crisis

I got an Email from someone who read my post on the deaths in Nigeria from that oil explosion.  My understanding was that there was a leak, and that the poor from the area were trying to get some oil in order to survive.

The reader pointed to this fine article from the Virginia Quarterly Review by John Ghazvinian who took a trip to Nigeria and details exactly what’s going on with the oil industry and the locals who get no benefit from the vast oil reserves lying beneath them.

The Niger Delta is made up of nine states, 185 local government areas, and a population of 27 million. It has 40 ethnic groups speaking 250 dialects spread across 5,000 to 6,000 communities and covers an area of 27,000 square miles. This makes for one the highest population densities in the world, with annual population growth estimated at 3 percent. About 1,500 of those communities play host to oil company operations of one kind or another. Thousands of miles of pipelines crisscross the mangrove creeks of the Delta, broken up by occasional gas flares that send roaring orange flames into the already hot, humid air. Modern, air-conditioned facilities sit cheek-by-jowl with primitive fishing villages made of mud and straw, surrounded with razor wire and armed guards trained to be on the lookout for local troublemakers. It is, and always has been, a recipe for disaster.

The problem, in a nutshell, is that for fifty years, foreign oil companies have conducted some of the world’s most sophisticated exploration and production operations, using millions of dollars’ worth of imported ultramodern equipment, against a backdrop of Stone Age squalor. They have extracted hundreds of millions of barrels of oil, which have sold on the international market for hundreds of billions of dollars, but the people of the Niger Delta have seen virtually none of the benefits. While successive military regimes have used oil proceeds to buy mansions in Mayfair or build castles in the sand in the faraway capital of Abuja, many in the Delta live as their ancestors would have done hundreds, even thousands of years ago—in hand-built huts of mud and straw. And though the Delta produces 100 percent of the nation’s oil and gas, its people survive with no electricity or clean running water. Seeing a doctor can mean traveling for hours by boat through the creeks.

If you’re interested, and you’ve got the time (it’s pretty long) I recommend this article for an in depth look at oil in Nigeria.