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Arabica Robusta

Pambazuka - Oil-dependency and food: Livelihoods at risk - 0 views

  • Without diminishing the severity of the Gulf spill, several observers have pointed out the asymmetrical political reactions to oil disasters in the US and in other parts of the world.[6] Nnimo Bassey, Nigerian head of Friends of the Earth International, explains the sense of frustration: ‘We see frantic efforts being made to stop the spill in the US, but in Nigeria, oil companies largely ignore their spills, cover them up and destroy people's livelihood and environments…This has gone on for 50 years in Nigeria. People depend completely on the environment for their drinking water and farming and fishing. They are amazed that the president of the US can be making speeches daily, because in Nigeria people there would not hear a whimper.’[7]
  • Presumably, companies are not only put off by the prospect of increased red tape in the US, but also attracted – as they have been for decades – by the limited capacity of African States to regulate extractive activities. To attract foreign investment, most countries in sub-Saharan Africa also enter into generous production-sharing agreements that allow foreign oil companies to turn a relatively small upfront investment in exploration into billions in downstream profits.[11]
  • Even after the Deepwater Horizon explosion, the company has moved full-steam ahead with plans to sell off US$30 billion in onshore and shallow-water production assets in order to aggressively pursue deepwater drilling in West Africa, Angola, Egypt and, yes, Louisiana.[17]
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  • Critics also point to Ghana’s long history of extractive activities and primary commodity exports: Ghana produces gold, bauxite, manganese, diamonds, timber and cocoa, none of which have generated appreciable benefits for the majority of Ghanaians.
  • Ghana has chosen to accept so-called ‘stabilisation clauses’ in its contracts with companies that lock in current laws and regulations. If the country should decide to strengthen its regulatory framework, companies with existing contracts could claim that the new laws do not apply to them, or require the government to provide financial compensation for the cost of compliance.[13] As foreign companies reap handsome rewards, and Ghana gains uncertain benefits (much of the content of these contracts remains secret), coastal communities are sure to pay the highest cost. At a recent Extractive Industries Transparency Initiative (EITI) workshop held in the coastal town of Takoradi, representatives of six districts located closest to the oil find responded angrily to refusals to commit part of the petroleum royalties to an environmental mitigation or compensation fund, as is legally required in the mining sector.[24] No such provision has thus far been established for the oil and gas industry.
  • corporate interests are often recast as national security concerns. It was President Jimmy Carter who cemented the connection in his 1980 State of the Union address by stating that any foreign attempt to gain control of Middle Eastern oil would be regarded as ‘an assault on the vital interests of the United States of America.’ The policy, now known as the Carter Doctrine, set a dangerous precedent of using military might to secure ‘strategically important’ resources throughout the world.
  • In another case, the European Commission on Oil in Sudan (ECOS) has accused oil companies of complicity in crimes against humanity in a Southern oil field known as Block 5A. ECOS charges companies with pressuring armed groups to ‘clear the ground’, leading to a wave of repression in which 12,000 people were killed and another 20,000 displaced.
  • Farming accounts for as much as 32 per cent of total emissions, a significant portion of which are created by industrial agriculture through the use of petroleum-based fertilisers, pesticides and forest clearing.[38] The issue of ‘food miles’ – the distance our food travels from farm to table[39] – has been well documented, while new data shows that the production phase accounts for as much as 83 per cent of the average US household’s carbon footprint for food.[40] Changing the way we produce food, therefore, constitutes a necessary step towards reducing oil dependence, its enormous carbon footprint and its human toll.
  • Food sovereignty, the political project put forward by the international peasant movement Via Campesina, offers a promising road map.
  • Industrial agriculture may be more ‘efficient’ in terms of labour (output per worker), but its productivity is achieved through massive applications of fossil fuel-based inputs such as tractor fuel and agrochemicals. Small organic farms, however, are generally more efficient in terms of land (output per acre), since they grow a variety of plants and animals, taking full advantage of each ecological niche.
Arabica Robusta

Extreme Oil: Costly, Dirty and Dangerous (Klare) | Informed Comment - 0 views

  • Once this surge in U.S. energy production was linked to a predicted boom in energy from Canada’s tar sands reserves, the results seemed obvious and uncontestable.  “North America,” he announced, “is becoming the new Middle East.”  Many other analysts have elaborated similarly on this rosy scenario, which now provides the foundation for Mitt Romney’s plan to achieve “energy independence” by 2020.
  • Perhaps the most notable example of this was Shell Oil’s costly failure to commence test drilling in the Alaskan Arctic.  After investing $4.5 billion and years of preparation, Shell was poised to drill five test wells this summer in the Beaufort and Chukchi Seas off Alaska’s northern and northwestern coasts.  However, on September 17th, a series of accidents and mishaps forced the company to announce that it would suspend operations until next summer — the only time when those waters are largely free of pack ice and so it is safer to drill.
  • Only after promising to take immensely costly protective measures and winning the support of the Obama administration — fearful of appearing to block “job creation” or “energy independence” during a presidential campaign — did the company obtain the necessary permits to proceed.  But some lawsuits remain in play and, with this latest delay, Shell’s opponents will have added time and ammunition.
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  • Another unexpected impediment to the arrival of energy’s next “golden age” in North America emerged even more unexpectedly from this summer’s record-breaking drought, which still has 80% of U.S. agricultural land in its grip.  The energy angle on all this was, however, a surprise.
  • If this year’s “endless summer” of unrelenting drought were just a fluke, and we could expect abundant water in the future, the golden age scenario might still be viable.  But most climate scientists suggest that severe drought is likely to become the “new normal” in many parts of the United States, putting the fracking boom very much into question. 
  • If the U.S. proves too tough a nut to crack, Alberta has a backup plan: construction of the Northern Gateway, a proposed pipeline through British Columbia for the export of tar sands oil to Asia.  However, it, too, is running into trouble.  Environmentalists and native communities in that province are implacably opposed and have threatened civil disobedience to prevent its construction (with major protests already set for October 22nd outside the Parliament Building in Victoria).
  • While output from unconventional oil operations in the U.S. and Canada is likely to show some growth in the years ahead, there is no “golden age” on the horizon, only various kinds of potentially disastrous scenarios.  Those like Mitt Romney who claim that the United States can achieve energy “independence” by 2020 or any other near-term date are only fooling themselves, and perhaps some elements of the American public. 
  • The drought’s impact on hydro-fracking became strikingly evident when, in June and July, wells and streams started drying up in many drought-stricken areas and drillers suddenly found themselves competing with hard-pressed food-producers for whatever water was available. 
Arabica Robusta

Exxon 'loses' Venezuela nationalisation case - Features - Al Jazeera English - 0 views

  • In the latest showdown between western oil companies and Venezuela’s populist president, Exxon Mobil is widely seen as the loser, after the Paris-based International Chamber of Commerce (ICC) ruled that the world’s biggest oil company would not be entitled to most of the damages it demanded after its fields were nationalised.
  • Despite this recent victory, PDVSA is facing some trouble. Under Chavez, the energy giant has undertaken ambitious social spending, running subsidised food distribution programmes and international aid projects as if it were a state unto itself. Critics say oil companies should not be delivering government services. And the money used for "Bolivarian" projects means the corporation has less to invest in developing new reserves; production has dropped from about 3.3m barrels per day in 1998 to about 2.25m in 2011, The Economist reported.
  • Like many of its South American neighbours, Venezuela has drastically reduced poverty in the past decade; the Bolivarian Republic’s poverty rate fell from 48.6 per cent in 2002 to 27.8 per cent in 2010, according to the UN Commission for Latin America's 2011 report. Inequality also declined sharply. This progress is linked to tough negotiations with foreign oil companies, so the state can have more resources to invest in local communities, Chavez’s supporters contend.
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    This kind of oil company development is certainly more sustainable than self-interested CSR and public-private partnerships by corporations legally required to maximize their own profits.
Arabica Robusta

Idku - a neglected town stands up against environmental degradation | Egyptian Initiati... - 0 views

  • Talking to Idku locals, their pride in their hometown's past glory is  hard to miss - “Idku used to be Egypt’s food basket”, they tell me. But so is the bitterness over its lost potential; the neglect, violations, and loss of their livelihoods, “Idku is an orphan town no one cares about”.
  • These factors are further confounded by evident climate change impacts: the community’s resilience to the longer and stronger seasonal wave surges is weakened by the uncontrolled raking of Idku’s sand dunes (now almost completely removed) by big-business construction contractors, changing the coastal topography and depriving the area of a natural shoreline barrier.
  • Shifting seasons have aggravated the impacts of already declining fish populations on the vulnerable fishermen, diminishing the catch yield and fish variety. Degraded farmland is suffering from increasing salination, with 95% of the famed guava orchards seriously damaged.
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  • Yet Idku remains defiant, even in the face of the Egyptian Liquefied Natural Gas  Project, a massive natural gas liquefaction facility on the nearby beach. The oil operations are run by two joint ventures Rashpetco and Burullus, whose shareholders include the British BG, Malaysian PETRONAS, French Gaz de France,  and the Egyptian state companies EGAS and EGPC .
  • Unfortunately, BP has not given up completely. Instead of recognising that it's not wanted, the company has moved to a new location futher east along the coast. Now the struggle moves to Mtubas  in Kafr elSheikh, the new proposed site for BP’s gas plant.
  • To day, these demands remain unmet. So when British Petroleum eyed Idku for an onshore natural gas processing plant, the community took matters into its own hand: it mobilized to stand up against the proposed project. Roads were blocked, a sit-in occupied the construction site, BP's office was raided and popular assemblies took place in the street. The organised local campaigning and resistance by the Idku community managed to halt BP’s plans.
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