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A three-cornered problem; the indigenous people

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In essence the issue has three major actors, all of whom are distinctly at odds with each other; the central government, the oil companies and the indigenous peoples of the Niger Delta, the hydrocarbon-producing belt of the southern coast..

To take the last first, it is hardly a surprise that the indigenous peoples of the Niger Delta regard the oil industry as an enemy, regardless of the numerous attempts by the companies to ameliorate the situation. For, since oil production began in the late 1950s, the industry has been flaring the associated gas that comes up with the oil in huge quantities on land and offshore.

Official statistics suggest that in spite of numerous attempts to stop flaring, in the first half of 2008 some 1.8 billion standard cubic feet per day (bscfd) of untreated gas was still being flared.

This may be significantly down on the amounts flared in, say, 2005, when officially some 40+% of all gas produced was flared. However such is the level of mutual suspicion involved that many doubt the official figures. Equally the decline in the percentage of gas production flared may well be the result of increased 'unassociated gas' produced and the 'shut in' of significant amounts of oil production.

This is an important point. While the percentage quantities of gas produced that is flared has fallen from almost 60% in 1999 to 32% in 2007, the actual volumes of flared gas has not done so. Back in 1999 it was 792 billion standard cubic feet (scf). In 2007 it was 776 billion scf. Actual gas production has risen from 1,328 billion to 2,376 billion cubic feet. In effect for all the percentage decline in flaring, the volume apparently wasted is the same.

This mechanism of cheering on the reduction of 'the percentage of gas flared' works embarrassingly both ways. In reported data Chevron, for example, are still flaring some 90%+ of their gas production. Significantly however, the amount of gas the company is producing has fallen from 34 to 2.4 billion scf over the past nine years, so their contribution to flaring is negligible compared to others.

When reviewing official and company figures for gas flaring obvious contradictions made it apparent that better quality data is needed for any detailed arguments and planning. Presently the apparent failure of some companies to report (or data that begs credulity) makes it impossible to asses whether local utilisation of gas or the closure of some fields may be long overdue. A short walk through the data prepared for a longer document is included here as Appendix 2.

Regardless of arguments over detail few can doubt the health and societal effects of this gas flaring. The situation would be better if it was merely purely natural gas (methane) that was flared. But it is not. The flare stacks emit particulate, sulphur dioxide, benzene, toluene, hydrogen sulphide and a good many other identifiable toxins. The effect on health does not need to be imagined. It is cancers, asthma, chronic bronchitis, numerous heart and lung complaints and, in effect, a great many premature deaths and a high infant mortality rate. Given the spread of these flare stacks in the region, it is highly likely that more than 30,000 people actually live within a kilometre of one flaring well.

Secondly, in societal terms, the effect of this is widespread anger and resentment. For those in the region, the benefits of hydrocarbon extraction for the economy as a whole are seen as simply passing them by. The oil that is produced is taken away and the toxins stay behind. The system of allocation of revenues from central government that goes to the state governments is seen as inadequate for the sacrifice involved.

However, attempts to change this relationship by extracting oil and condensate locally are deemed illegal and penalties are harsh. While such activities carry a high level of danger - some 2,800 people having been killed horribly in explosions in the past decade - illegal refineries and localised production still flourish in secret. This, in turn, creates a high level of resentment at any attempt by the central authorities to stop it, regardless of health and safety arguments.

Given such a situation, it is hardly surprising that those without adequate electricity and deep in poverty resent the intrusion of the industry and seek to profit from kidnapping.

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