gas


We have a laboratory that shows us what happens to a vital and sensitive coastal wetland subjected to massive and repeated oil spills. So far very little has been done to study it. The Niger Delta, one of the 10 most important wetland and coastal marine ecosystems in the world, has experienced an average of one oil spill per day, collectively the equivalent of one Exxon Valdez spill per year, for five decades, 50 years. Half the life created in a warm coastal wetland is created in the top two millimeters of slime on the surface of the marsh mud, the food base of the entire coastal wetland, as illustrated below. If this layer is covered by oil and dies, all the animals up the food chain risk starvation. In the 8 minute video Curse of the Black Gold. you can hear a man telling us that in his Niger Delta fishing community where they have fished for generations, there is now no one who can make a living as a fisherman.

Half of the all the life created in the nature-rich Louisiana coast, one of the world's most productive estuaries, or in any warm coastal wetland, takes place in the thin layer of slime on top of the marshes. Microscopic creatures are a key part of the Gulf marsh ecosystem. (nola.com, click to enlarge enough to read)

Right now BP’s Deep Horizon well is spilling what may be the equivalent of one or more Exxon Valdez spills per week. The well may be compromised downhole (from dougr at the Oil Drum) and leaking in multiple locations. How, and even if it can be stopped are open questions to which no one appears to know the answer. In the Niger Delta we have the laboratory for how this massive a spill might effect people, plants, animals, land, and water. But it has been very little studied. The effects of this oil spilling on people has been almost completely ignored.

Meredeth Turshen wrote of the Niger Delta in 2004:

Specific effects of oil development on women’s health seem not to have been investigated. Although I found an article on the effects of exposure of crocodiles to sub-lethal concentrations of petroleum waste drilling fluid in the Niger Delta basin, I could find nothing on the health of women who live near oil wells and oil production stations, and nothing on reproductive outcomes in areas adjacent to petrochemical plants. Yet it is known that cadmium, chromium, mercury, and lead are contained in the refinery effluents that are constantly discharged into nearby bodies of water. At high concentrations these metals cause metabolic malfunctions in human beings. They enter the food chain through the drinking water and the local fish that people consume.

Right now we are just beginning to see similar exposure to US citizens.

Oil spills have destroyed lives and livelihoods throughout the Niger Delta. You can see and hear what has happened to people:
Click here to view the 8 minute video Curse of the Black Gold.
It is based on Ed Kashi’s book of the same name, Curse of the Black Gold.

Neither the oil companies nor the Nigerian government want anyone to know what is going on. Investigation and research is actively discouraged. Those engaged in research or reporting may find themselves threatened and at risk of arrest, beatings, injury and death. And now The Mercenaries Take Over, mostly hired by the oil companies to protect their interests and prevent interference and investigation.

The same thing is happening in the Gulf of Mexico. BP has hired mercenaries to keep the news media and the public away from the places the oil has come ashore and prevent investigation.
Louisiana response to Gulf of Mexico oil spill obstructed by BP and federal agencies, state officials say
or
Barriers to news coverage of Gulf of Mexico oil spill remain despite promises

Journalists covering the Gulf of Mexico oil spill have been yelled at, kicked off public beaches and islands and threatened with arrest in the nearly three weeks since the government promised improved media access.

The threats and dangers are not now as pervasive and severe as in the Niger Delta. But they are there, and this is just the beginning. You can see in the following picture the vast extent of the oil spill, covering 18, 473 square miles on June 19, and growing. Much of that oil will be coming ashore in the wetlands. Storms are likely to drive it to land and inland. Much oil remains suspended in the water along with a great deal of methane that has been escaping with the oil. The oil and methane will kill marine life and make their habitat uninhabitable.

Strong thunderstorms form large, dense masses of bright white cloud in this MODIS/Aqua satellite image of the northeast Gulf of Mexico taken the afternoon of June 19, 2010. But it's clearer than the MODIS/Terra image taken the day before, and reveals fresh oil upwelling around the location of the leaking Macondo well, source of the ongoing BP / Deepwater Horizon oil spill. Slicks and sheen span 18,473 square miles (47,847 km2) on this image. Thin patches of slick and sheen appear to be making landfall from Gulf Shores, Alabama to Perdido Key in Florida, and from Grayton Beach State Park to the Seacrest / Rosemary Beach area along the Florida coast. (from SkyTruth on Flickr: flickr.com/photos/skytruth/4722626008/ , click to enlarge)

In Nigeria Claytus Kanyie says:

The aquatic life of our people is dying off. There used be shrimp. There are no longer any shrimp.

And another Nigerian fisherman speaks:

If you want to go fishing, you have to paddle for about four hours through several rivers before you can get to where you can catch fish and the spill is lesser … some of the fishes we catch, when you open the stomach, it smells of crude oil.

Soon this will be true in the Gulf of Mexico, as will all the health effects and economic impact of wetlands saturated with oil, and of a sea depleted of oxygen and filled with oil and toxic chemicals.

Advertisements

The International Institute for ICT Journalism created a blog for following news of oil finds, oil wealth, and the oil industry in Ghana:
Reporting Oil and Gas


FPSO, Floating Production Storage and Offloading vessel for the Jubilee Field and sub sea FPSO production facilities diagram from a presentation at Kosmos Energy

For awhile there was not much published, but in the last couple of months there have been new stories posted almost daily, sometimes several times per day. Many of these stories are taken from various media in Ghana. That makes Reporting Oil and Gas a very useful tool for collecting and following the stories on oil development in Ghana. At the end of each story the blog provides the link to the original source. This news blog is still in its early stages, but I hope it continues and expands. It is quite useful and much needed.

On February 1 it reported that Ghana is considering setting up a sovereign wealth fund for oil revenues.
Ghana Eyes Sovereign Wealth Find For Oil Morey -Minister

Ghana is considering setting up a sovereign wealth fund to channel surplus revenues from oil production, which are due to start rolling later this year, Finance Minister Kwabena Duffuor has said.

“We have held a couple of meetings already it’s something we’ re seriously working towards and we hope to put the proposals before Cabinet in about a month,” Dr. Duffuor said in an interview with Reuters.

He said if Cabinet backs the proposals, a bill will then be drafted for consideration by parliament, Duffuor said.

The Finance Minister gave no details of the size of the possible fund. But a Ghanaian government source close to discussions on the matter said it will be largely shaped by the size of oil revenues.

The source noted that it was not certain that the fund would be given the green light, noting an alternative option-investing in key domestic infrastructure project was also under discussion.

Ghana is the latest Africa state, alongside Nigeria, Angola and Tunisia to study ways to ring fence energy windfalls for future generations.

Ghana, the world’s number two cocoa producer and Africa’s second –biggest gold miner after South Africa expects to starts oil production late this year when its offshore Jubilee energy field starts operation.

And Is “Oil Fund” all Ghana needs to defeat the Resource Curse? by Stephen Yeboah from the Department of Planning, Kwame Nkrumah University of Science and Technology

The case for the economic and political significance of oil funds remains very bleak. It is now argued by some economists that oil funds are no more effective than other measures for mitigating the threats of Dutch Disease.

… the country needs accountability, openness and transparency to defeat the resource. And what makes these three pillars meaningful in any democratic dispensation? Ghana ought to rejuvenate its institutions and governance structures to solve the paradox of plenty.

Most importantly, regulatory and legal framework in the oil and gas sector and in managing the oil fund should be made operational. Would Ghana have the capacity to enforce the laws that would govern the oil industry?

The statement by the Deputy Minister of Energy, Emmanuel Armah-Kofi Buah, that the Ministry of Energy would oversee the disbursement of funds in the “Oil and Gas Business Development and Local Content Fund” leaves much to be desired. Here, it is definitely the adherence to the political disincentives in the country where virtually the executive wields leverage even over parliament. This situation would allow public spending for personal gains. Ideally, the role to oversee and monitor the disbursement of funds should solely be assigned to an independent oversight body and parliament respectively. Parliament should exercise the authority of debating, approving and scrutinizing petroleum agreements, government transactions in and out of the oil fund.

Concerning the role of civil society organizations, there is a seemingly brighter step since Ghana is blessed with vibrant groups that are always in place to have a say in government decisions. But in the context of the oil sector, are civil society groups empowered enough to meet the difficult challenges ahead? It is worthy of note that an oil fund with small number of actors operating in nontransparent and poorly linked manner would encourage misappropriation and abuse of power. The outcome of the issue here is that limited roles of CSOs mean that the tool for ensuring transparency and openness in the oil sector is made ineffective. The Extractive Industries Transparency Initiative (EITI) is the best medium that can enjoin the role many actors, from government representative to civil society organizations.

Again, what is always significant is for the ordinary Ghanaian to be educated and made informed of what goes on in the oil and gas sector. This is to clamp down on possible uncontrolled grievances that may cause revolts.

The latest stories as of today are dated February 4th.
World Bank gives Ghana $30m for capacity building for oil and gas industry

The World Bank in a programme is giving the country an amount of $30 million for training to build capacity for the industry.

Diwan said the Bank was embarking on an “ambitious programme to train Ghanaians in the universities, financial institutions, for taxation and management” to prepare the country to be in a position to manage the oil resources.

This development has given hope to many observers who believe that the discussions are an opportunity to lead the country to develop a sound plan on how to manage the oil and to avoid the problems that many oil-rich African countries are going through presently.

I doubt any plan of the World Bank will help avoid the oil curse. The pattern of the World Bank and the IMF is to tear down any responsible government institutions with structural adjustment programs, leaving countries at the mercy of predatory global capitalism, without any institutional defense system. This is largely the point of structural adjustment programs. Ghana has already suffered and continues to suffer from loss of personel in the public sector due to structural adjustments, preventing the government from carrying out its responsibilities to the people of Ghana.

Reporting Oil and Gas is very simple in design and only puts two or three stories on a page. This is smart design, as it makes it much more useful in Ghana where there are not so many high speed connections to the internet. And Ghana is where this information is really needed.

The other story on the front page today is Investment conference in Ghana in March

International Business Event Management Ghana Limited, in collaboration with the Ghana Investment Promotion Centre (GIPC) and other stakeholders, is to host a multi-sectoral conference in March, this year, for potential investors to the Ghanaian business terrain.

The conference, dubbed: “Investing and Growing Your Business in Ghana- Challenges and Opportunities (IGB-Ghana 2010), follows the launch of the International Business Event Management Ghana Limited (IBEM-Gh. Ltd) on January 13, this year, in Lagos

“IGB Ghana 2010 conference will not only present a unique business networking opportunity for participants but would also provide the opportunity to meet and deliberate with service providers, government regulators, development partners, law firms, government agencies, ministries, Ghana Chamber of commerce and financial institutions,” he stated.

Mr. Ampah said:” the conference is bringing together manufacturers from Africa, Europe, Asia, and thee United States, adding that regional and multi-national corporate bodies, gas companies, embassies, banks and financial institutions as well as private sector operators would participate in the conference.”

Shedding some light on the launching event in Lagos, Mr. Ampah said many investors expressed their interest in investing in Ghana but expressed the need for regular power supply to avoid disruptions in their operations.

Irregular power supply is a huge handicap to businesses in Ghana, and to doing business in Ghana. It can make many activities and transactions impossible. It would be nice to see some progress to solving the problem.

There is one thing I hope Reporting Oil and Gas adds to their stories, and that is the name of the original author, if it is available. They do link to the original story, so it is possible to find who wrote a story if the author is named, but it would be nice to bring that information into the stories at Reporting Oil and Gas. Nevertheless Reporting Oil and Gas performs a valuable service well, and I recommend it to your attention.

________

Added February 10:

Subsea Equipment Ready For Oil Production

The subsea equipment required for the production of oil from the Jubilee Oil Fields off the coast of Ghana in the Western region, have begun arriving in the country.

A statement issued in Accra and signed by the Communications Manager of Tullow Ghana Limited, Mr. Gayheart Mensah, said, “this is a strong indication that the operator of the Jubilee Field, Tullow Ghana Limited, is ready to produce first oil from the Jubilee Field by the last quarter of this year.”

An equipment known as “The Christmas Tree,” which is an assembly of control valves, gauges, pipes, chokes and fittings and which is installed on the ocean floor, is used to control oil and gas flow from a completed well.

The statement said that the Sekondi Naval Base and the Takoradi Port have been the main entry points for the equipment, adding that before the vessels carrying the equipment set sail for Ghana, a team from Tullow Ghana Limited visited some of the companies contracted by the Jubilee Partners to manufacture subsea structures for the project.

According to the statement, the oil discovery in the Jubilee Oil Fields has come with “expectations among Ghanaians that the oil find should transform Ghana’s economy and spin off jobs immediately. These are huge expectations that need to be managed.”

The statement is confident, “with the level of technology deployed by Tullow Ghana Limited, the operator of the Jubilee Oil Fields and the quality of personnel working on the project, the target date of producing first oil by the last quarter of this year will be met.”

There is an article at the African Loft, Should Nigeria Welcome Gazprom?, the Russian oil company. Recently the Financial Times reported that Gazprom was making overtures to Nigerian government officials about developing gas fields in Nigeria.

The article provides some good information and analysis, including:

What about Gazprom? What does it have to offer? The Financial Times report (referred to in the first paragraph of this write up) provides next to nothing on this, though it quotes a Nigerian government official as saying:

“What Gazprom is proposing is mind boggling. They are talking tough and saying the west has taken advantage of us in the last 50 years and they’re offering us a better deal.”
. . .
Gazprom, like any other energy conglomerate, is simply strategically positioning itself for global growth beyond the shores of Eurasia.
. . .
Gazprom doesn’t really need Nigerian gas. . . . But Gazprom needs access to strategically positioned gas. As a significant player in the global LNG business and with Africa’s largest gas reserves, Nigeria seems a good place to start. Gazprom would not go into Nigeria to save it from the perils of western oil multinationals. It would go there for business and strategic reasons. Forget the east-west jargon.

And I am sure Gazprom would be as exploitive as it could be, as exploitive as any other multinational corporation. There is no history that would indicate otherwise.