Militants Capture Nigerian Oil: Global Price, Energy Policy Impacts?

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Chevron’s Nigerian oil pipeline has been overtaken by the Movement for the Emancipation of Nigeria in the Niger Delta (above: AFP/File Photo). The group is obviously well-armed and trained. See the lead machine gunner supplied by ammunition/communications (left), and flanked by AK-47s and rocket launcher holders (left rear, right rear) scanning the horizon of Niger River, which has pipeline, production and transport facilities (Niger River Delta and Nigerian offshore oil areas are in yellow below).

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The Niger Delta has been the source of about 2.5 to 3% of world oil supply and reserves, with Shell, Exxon, BP and others holding major delta and offshore concessions.

Multi-national oil companies have been open flaring oil wells 24 hours a day into the air, and causing extensive water pollution in the area once home to rich fishing and agriculture.
Thus the region is growing infamous for impacted civilian uprisings, peaceful and not so.

Said the governor of Nigeria’s Delta State, Dr. Emmanuel Uduaghan: “…the
oil companies have polluted the air, the waters and soil….So, with this kind of situation, our people can no longer
fish or farm and so they can no longer feed themselves, the capacity to
do this is no longer there and when you cannot feed yourself, you are
hungry and when you are hungry, you get angry and when you are angry,
you get violent. So, it is a vicious cycle…We want to create a Delta
State without oil…We should be able to create a Nigerian economy
without oil, bring our youth up and train them to become farmers and
non-violent producers”.

Nigerian novelist and television producer Ken Saro-Wiwa was hung after military trial in 1995, concerning demonstrations by the Ogoni group he founded, Movement for the Survival of the Ogoni People (MOSOP).

Before the news of the Chevron pipeline takeover, oil markets were already heating up Friday to almost $83 a barrel, the highest range since October 2008, after hitting their historic peak of $147 a barrel in July 2008. Based on Nigeria and increased demand from China, this week could be be a harbinger for 2010 oil price trends.

Are rising oil prices and energy insecurity putting the issue of future global fossil fuel supply in play once more?  

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