1. Blood Oil in the Niger Delta
- Author:
- Judith Burdin Asuni
- Publication Date:
- 08-2009
- Content Type:
- Working Paper
- Institution:
- United States Institute of Peace
- Abstract:
- The trade in stolen oil, or “blood oil,” poses an immense challenge to the Nigerian state, harming its economy and fueling a long-running insurgency in the Niger Delta. It also undermines security in the Gulf of Guinea and adds to instability on world energy markets. The exact amount of oil stolen per day in the Niger Delta is unknown, but it is somewhere between 30,000 and 300,000 barrels. The loss to the Nigerian economy from illegal oil bunkering between 2003 and 2008 totals approximately US$100 billion. It is time for the international community to become more proactive in helping Nigeria address this complex issue. Efforts to control blood oil must be accompanied by actions against corruption, illegal arms importation, and money laundering. The enabling environment for illegal oil bunkering includes high levels of unemployed youth, armed ethnic militias, ineffective and corrupt law enforcement officials, protective government officials and politicians, corrupt oil company staff, established international markets for stolen oil, and the overall context of endemic corruption. The three types of illegal oil bunkering include small-scale pilfering for the local market, large-scale tapping of pipelines to fill large tankers for export, and excess lifting of crude oil beyond the licensed amount. The complexity of players in the illegal oil bunkering business, including local youth, members of the Nigerian military and political class, and foreign ship owners, makes it difficult to tackle the problem unilaterally. Previous attempts by the Nigerian government and international community to address illegal oil bunkering have had limited success in reducing the flow of blood oil. The problem of blood oil needs to be addressed multilaterally. Within the international community, the United States is uniquely positioned to take a leadership role in helping to dry up blood oil and address other issues in the Niger Delta.
- Topic:
- Conflict Resolution, Political Violence, Markets, Oil, and Armed Struggle
- Political Geography:
- Africa, United States, Nigeria, and Guinea