Changes in US Oil Policy:

US Will Buy Less Oil From Saudis

 

 

On June 12, IASPS sponsored a press conference on Capitol Hill to discuss the strategic importance of West African oil to the US. This initiative of IASPS is being furthered through the "African Oil Policy Initiative Group."

 

At the press conference and in published IASPS research, the following points were made:

 

Saudi and Arab hegemony over US and world market have been dealt a blow by the US intention to increase the African share of oil imports to 25% by 2015. This is especially important after Sept. 11 as it affects Saudi influence.

 

This information was supplied by IASPS at the June 12 press conference held in Washington, DC, and is apparent from National Intelligence Council and Department of Defense documents.

 

Nigerian and Angolan oil output is expected to double or triple in 5-10 years. The unavoidable conclusion is: African oil of strategic importance to the US.

 

IASPS experts say the US is on the verge of a strategic relationship with West Africa and President Bush is set to realize his ambitious goal of diversification of US energy resources.

 

IASPS analyst Paul Michael Wihbey said at the press conference attended by Congressmen and Administration officials that "West African oil is not the goal, but the means to US energy security and African economic development."

 

IASPS has published a White Paper with recommendations that the US encourage African regional development by offering debt forgiveness that would be tied to successful exploitation of oil, investment of a percentage of oil income in African development, and the establishment of a US military command on an island off West Africa to show the importance of the region to the US.

"Africa's emerging potential as a major oil producer, and supplier to the United States, has been of interest to the Subcommittee on Africa that I chair for some time.  The subcommittee held a hearing to look at this topic in 2000.  It's clearly in our national interest to diversify our energy supply, especially given the turbulent political climate in key parts of the world today.  The expansion of energy production in Africa matches that interest.  Today, over 15 percent of our oil imports come from Africa.  This figure will increase substantially in the years ahead.   

"I'm glad to receive the African Oil Policy Initiative Group's report on African oil [African Oil: A priority for U.S. National Security and African Development].  This effort deserves to be commended for bringing attention to African oil.  It is important that we challenge the conventional wisdom that Africa is of little strategic interest to our nation.  We must look around the bend, anticipating future energy scenarios, while creatively seeking to address the challenges that come with Africa's growing energy production.  That is what this report does. 

"In looking at African oil, we must constantly ask what growing production means for the oil producing nations on the continent.  Let's be frank: oil development has proven to be more of a curse than a blessing for many developing nations.  Few have put oil revenue to good use.  Oil revenue has often been squandered.  In many cases, oil revenue has been plundered by corrupt government officials.  It is sobering that the average Nigerian is worse off today than 25 years ago, despite the $300 billion in oil revenue generated since then.  It is appalling that former Nigerian dictator General Sani Abacha took billions himself.  In the worst cases, oil has fueled civil war.  This has been the case in Angola for years; over the last few years, oil has intensified the long and brutal war in Sudan.   

"It is incumbent upon we as a nation to do all we can to see that this pattern of misuse and conflict surrounding African oil is broken.  In April, the Africa Subcommittee held a hearing on the innovative Chad-Cameroon Pipeline Project, which at $3.7 billion, is the largest U.S. investment in Africa.  This project brings together the World Bank, energy companies, the governments of Chad and Cameroon, and civil society in these two impoverished nations in an effort to see that the oil revenue, which will soon flow to government coffers, works toward the goal of national development. 

"The government of Chad has agreed to earmark a large percentage of this revenue to spending on education, health, and infrastructure.  Aggressive outside auditing of the oil books is planned.  I believe this approach holds great promise for current and future African oil producing nations.  The U.S. government has played a role in this project, as it should.   

"The practice of turning a blind eye as oil revenues are misused is not good for our country's strong interest in seeing the world's poorest continent develop; it's certainly not good for Africans; and ultimately it's bad business for energy companies.  Expectations around the world are changing, and old practices are becoming harder to sustain.   Transparency is increasingly being called for.  This week, the Africa Subcommittee will hold a hearing on Angola, looking at that war-shattered country's potential for peace and economic growth.  There appears to be a chance now to counter the Angolan government's pilfering of oil revenues, which has gone on for years.  I hope that the energy companies, the Angolan government, the international financial institutions, Angolan civil society, and our government can all work together to improve this situation. 

"If done right, the development of Africa's energy resources will improve our nation's security, benefit our economy, and help lift African economies.  I look forward to working with my colleagues on these issues.  It is helpful that the Initiative is bringing a critical eye to African nations' development of their bountiful oil reserves."