Oil Policy In The Gulf Of Guinea

Oil and Terrorism in the New Gulf examines the national security implications of U.S. energy security policies in the Middle East, and the emerging U.S. involvement in oil exploration and extraction in West Africa. Similar political, social, and economic challenges_poverty, corruption, lack of infrastructure, and weak governments_are seen in the oil-producing states of both the Middle East and Africa. Drawing comparisons between these two regions allows Forest and Sousa to formulate policy recommendations for how to handle foreign policy toward Africa in the future based on lessons learned from past interaction with the Middle East. Oil and Terrorism in the New Gulf promises to inform a lively debate over the future of U.S. foreign policies toward Africa and is a valuable resource for policymakers and the academic community that should be approached in a coherent, integrated fashion to ensure the success of the United State's energy and national security agendas.

This book investigates the paradox at the heart of present-day Gulf of Guinea politics. The governance crisis festering throughout every one of the region's states ought to discourage outsiders from capital-intensive, long-term commercial involvement and cast doubts over the political survival of ruling cliques. However, the presence of large petroleum deposits radically changes this equation: the negative dynamics of state failure and wide-spread violence affect the general population but spare the oil nexus. The material and political resources made available by oil allow states to survive regardless of bad policies, facilitate their governing elites' material success regardless of reckless management, earn international allies regardless of erratic domestic conduct, and make companies want to invest regardless of risk. The recent oil boom only strengthens this paradoxical viability. Making possible what is arguably the largest inflow of resources into Africa in history, it is of a different order from the short-term viability afforded by the exploitation of other natural resources. Nonetheless, the partnership between insiders and outsiders that permits the extraction of oil is not conducive to positive long-term outcomes in institution-building or broad-based economic growth. Highly dependent on uninterrupted money flows and beset by various destabilising trends, the political economy of oil in the Gulf of Guinea is poised in a state of 'permanent crisis'.

The robust economic growth in the emerging economies as well as the volatile global political climate has caused disruptive prices of oil and a shift in the structure of the demand for oil. The Gulf of Guinea has one of the highest qualities of crude oil in the world. In spite of these factors a myriad of problems such as poor institutional quality and governance, inconsistent fiscal policies and poor human capital, oil spills and environmental costs among others pose great challenges for the effective development, management and utilization of oil and gas resources from the Gulf of Guinea. This conference would address these issues as well as the need for diversification of trading products. The theme of these conference falls within the scope of the mission of Barinu Institute for Economic Development. I wish you all a very robust discussion during the conference. Uwaifo Aromose Chancellor, Barinu Institute for Economic Development

Nigeria is an important oil producer, but security shortfalls impede oil production and new investment. Important new finds of oil and natural gas have been reported in the territorial waters of Nigeria and nearby nations. Making the offshore petroleum infrastructure more secure would promote additional oil field investment, leading to greater production. The U.S. Air Force has expertise that could help build local security capabilities.

The Gulf of Guinea's tremendous potential is creating investment opportunities for the region. Some of its resources, such as oil, minerals, and forests, continue to attract significant investments whereas others, like natural gas, could be exploited to their full potential if necessary investments were undertaken. Nevertheless, the Gulf of Guinea has to cope with numerous challenges, both exogenous and endogenous, before it can fully benefit from its riches. One of these problems stems from the overwhelmingly weak institutions and governance, pointed by stylized facts, which add to the risks of "natural resource curse" and can feed the theory of the "Paradox of Plenty." The case is made that regional institutional arrangements and increased involvement of the international community and the African Diaspora should complement the efforts in which countries in the region should engage to address policy and governance issues. Complementary avenues are proposed, including maintaining stability and security, making better use of the region's own assets, putting in place a favorable business environment, and augmenting exports with value addition.

The Gulf of Guinea and U.S. strategic energy policy: hearing before the Subcommittee on International Economic Policy, Export and Trade Promotion of the Committee on Foreign Relations, United States Senate, One Hundred Eighth Congress, second session, July 15, 2004.