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f

The Crude Intentions

Minerals and the Need for an
Afrocentric Foreign Policy

Darfur TruthThroughout history, it has been the inaction of those who could have acted, the indifference of those who should have known better, the silence of the voice of justice when it mattered most, that has made it possible for evil to triumph. Darfur report

- Haile Selassie

SPECIAL SECTIONS

By Serie McDougal III, Temple University


America’s technological, military, and economic security is growing increasingly vulnerable because of a lack of energy security. As a result, America’s need to locate, exploit, and control fuel resources has intensified its engagement of the African continent. The nature of America’s relationship with the African continent is being progressively guided by U.S. energy policy. Moreover, this relationship must be analyzed in light of the continuing legacy of European colonialism on the African continent. There is a need to ensure that the majority of African people benefit from activity in Africa’s energy sector on a just and sustained basis. Fulfilling this need will require the adoption of a foreign policy that is reflective of Africa’s unifying cultural beliefs and values, holds foreign countries and companies who would do business with Africa to a set of standards that disallows Africa’s exploitation, and is aligned with African development on African terms.


Keywords: crude; refining; foreign policy We lost the quick suspiciousness of the deprived, gained unwisely generous reflexes, grew able to give without having to worry about receiving, became accustomed to producing without taking thought of the future depredations of destroyers. As yet this fateful generosity disturbed no one—there was no hardship. A fertile softness enfolded all our life. Ease, the knowledge tomorrow would sing as sweetly as the present day, made all willing to forget the past, to ignore the future. Past and future, neither weighed heavily upon our mind.

The growth of the American political and industrial economy, and the maintenance of Western hegemony, is becoming increasingly dependent on
foreign sources of mineral resources that are critical to America’s technological competitiveness, economic security, manufacture of goods, and defense industry. Because these minerals are so vital, they are considered critical materials (Klare, 2001). The location of these critical materials is becoming the guiding principle behind the implementation of America’s policy initiatives the world over. One of these critical materials is crude oil.


The global level of oil demand is rising at a rate of 2% per year, and the rate of new discoveries is annually decreasing. However, the world’s energy resources are far from equally consumed. The United States (4.6% of the world’s population) consumes 25% of the world’s energy resources. Nearly 60% of the United States’s crude oil is imported from foreign sources. The United States has reacted in part by increasingly tapping into the energy resources of Africa. As a result, Africa is occupying a growing position in the international political agenda of the West. The African continent risks becoming increasingly necessary to the sustenance of White supremacy and Western imperialism.


The National Energy Policy Development Group was commissioned by President George W. Bush in 2001; the purpose of this group was to design a detailed plan to deal with America’s growing dependency on foreign sources of energy. Vice President Dick Cheney was selected to lead the group, which produced a report called the National Energy Policy (NEP).


The report stated, “Along with Latin America, West Africa is expected to be one of the fastest growing sources of oil and gas for the American market. African oil tends to be of high quality and low in sulfur, making it suitable for stringent refined product requirements, and giving it growing market shares for refining centers on the east coast of the U.S.” (National Energy Policy Development Group [NEPDG], 2001).


Why Africa?
The Persian Gulf will continue to be the United States’s primary source of foreign oil despite political conflict in the region. However, by diversifying its oil assets the United States intends to reduce its dependency on the Middle East, which contains 68% of the world’s proven oil reserves (Ellis, 2003).


The American conflict with Iran over uranium enrichment, Israel’s land occupation, war in Iraq, and discontent with America’s military presence throughout the region makes the Middle East an area of political instability.
For the West, Africa is a necessary alternative. According to the U.S. National Energy Policy, “Concentration of world oil production in any one region of the world is a potential contributor to market instability” (NEPDG, 2001, p. 132). Diversifying American oil imports away from the Middle East serves the purpose of lessening the impact of potential supply interruptions that may result from political instability in the Middle East.


South America possesses substantial portions of the world’s proven oil reserves. However, the increasing liberalization of its governments has proven problematic to large foreign oil producers. Countries like Bolivia and Venezuela (the world’s fifth largest oil producer) are increasingly nationalizing and extending state control over their oil assets. On May 1, 2006, Bolivia abruptly nationalized the nation’s gas fields. In other cases, they are forcing foreign oil companies to pay higher taxes and higher fines for spills, and issuing smaller shares of oil revenue (Shifter, 2006).


Although Columbia possesses substantial oil reserves, the fact that foreign
investors depend on oil pipelines to the sea presents a problem. Columbia’s
Occidental Petroleum pipeline alone has endured more than 900 bombings
from rebel groups since the 1980s (Furero, 2002). As a result of the aforementioned challenges, Columbia would require millions of dollars in counterinsurgency provisions and funding. Significant oil reserves have been
found in the Caspian Sea region as well; however, transporting the oil to foreign markets would require extensive pipeline politics and security.


Energy from Africa plays an increasingly important role in our energy security.
Spencer Abraham, in a speech to the House International Relations Committee (Dao, 2002) The UN Conference on Trade and Development estimates that African oil reserves hold approximately 80 billion barrels, or 8% of the world’s crude reserves. During the last 10 years, Africa’s oil production levels have increased by 36%, whereas the rest of the world’s production levels have increased by only 16% (Servant, 2003). The Department of Energy estimates that “the combined oil output by all African producers is projected to
rise by 91% between 2002 and 2025, from 8.6 to 16.4 million barrels per day” (Klare & Volman, 2006, p. 611). Africa is also one of the only places in the world where the rate of oil output (91%) is actually increasing at a higher rate than oil consumption (35%) (Klare, 2004). Africa currently supplies 15% of America’s oil imports, and the U.S. National Intelligence Council expects U.S. oil imports from Africa to increase to 25% by 2015 McDougal / African Fuel Minerals 3 (NEPDG, 2001). According to the Energy Information Administration (2006) of the Department of Energy, the United States expects to be importing 770 million barrels of African oil per year in 2020. Africa’s oil is also attractive because it tends to be “sweet”—or low in hydrogen sulfide and
carbon dioxide—making it easier and cheaper to refine (Klare & Volman,
2006).


Of particular interest in Africa is the oil located in the countries that border the Gulf of Guinea and the oil located offshore in the Gulf itself. The Gulf of Guinea is estimated to hold 24 billion barrels of oil, making it one of the most productive offshore oil production centers in the world (Servant, 2003). The oil located offshore is of particular interest because it is not yet fully developed and is somewhat insulated from political turmoil on the mainland. The offshore oil in the Gulf of Guinea is also attractive to American markets and production firms because it does not have to pass through major choke points or high-risk security areas such as the Straits of Hormuz, the Strait of Gibraltar, the Strait of Malacca, or any other narrow canals on its way from the Gulf of Guinea across the Atlantic Ocean to refinement companies on the eastern seaboard of the United States. West Africa offers political advantages to those countries that do not consume oil from members of the Organization of the Petroleum Exporting
Countries (OPEC) in that neither of its oil-producing countries belongs to OPEC outside of Nigeria (Servant, 2003). The Wall Street Journal predicts that West Africa will become the largest oil-producing region outside of OPEC by 2010 (Klare & Volman, 2006). Moreover, securing oil investments in the Gulf of Guinea is politically strategic for the United States because it is very much aware of the competition it faces from the growing energy needs of India, Malaysia, North Korea, South Korea, and the energy-hungry industry of China. Securing oil resources in Africa represents a response to the competition the United States faces from China. It is important to note that “trade between China and Africa has been increasing at 30% a year and is expected to top $50 billion this year [2006] up from $39.7 billion in 2005” (Batson, 2006). Five countries in particular are attracting an increasing amount of attention in the Gulf of Guinea region: Nigeria, Angola, the Congo Brazzaville, Equatorial Guinea, and Gabon. Nigeria is currently Africa’s largest supplier of oil to the United States, supplying 10% of U.S. foreign oil. Nigeria has received more than $350 billion in oil revenue over the past 40 years, yet 70% of its population lives on less than $1 per day. In fact, the level of poverty in the oil-producing Niger Delta region is higher than the national average.


Risk Assessment
What is wrong with oil? It has the most potential of all the minerals to provoke crisis, conflict, and violence (Klare, 2004). However, the crisis related to oil cannot be blamed on oil itself. Terry Karl of Stanford University states, “Oil in itself means nothing. It is just a black viscous liquid. What matters are the social and political and economic institutions in which it is inserted. Oil can be a force for development or it can be a major impetus for war” (2002, p. 15). Additionally, according to studies conducted by the World Bank, “Of the 36 countries buffeted by conflicts, 27 countries are dependent on mineral exports. . . . Moreover, evidence
shows that reliance on oil and minerals negatively correlates with lack of national ingenuity and social resourcefulness, essential components of development” (Yohannes, 2002, p. 21). Using statistical analysis from 113 states between 1971 and 1997, Ross concluded that a state’s “reliance on either oil or mineral exports tends to make it less democratic; that this effect is not caused by other types of primary exports; that it is not limited to the Arabian Peninsula, to the Middle East, or Sub-Saharan Africa; and that it is not limited to small states” (2006, p. 346).


The question we must ask is: Just how dependent on crude oil exports are the oil-producing African countries of the Gulf of Guinea? Oil accounts for 95% of Nigeria’s government revenue; 85% of Angola’s government revenue; 81% of Equatorial Guinea’s government revenue; 60% of Gabon’s government revenue, and 60% of Congo Brazzaville’s government revenue. Nothing human happens outside of the realm of culture. Nobles, 2006 Recent social political circumstances alone fail to account for the deeply rooted European legacy of colonialism, imperialism, and White supremacy on the African continent against people of African descent. The basic ethos of the European worldview that characterizes the historical position that Western countries have occupied in relation to Africa is based on the values of mastery over nature, materialism, conflict, aggression, and the accumulation of resources at all costs (Kambon, 1998). The current disproportionate material consumption, waste production, and military dominance of Western countries over non-Western countries are products of culturally based and historically rooted patterns of behavior and ideology coming out of the West.

McDougal / African Fuel Minerals 5
White supremacy is the social, structural, and systemic exercise of power against non-White people defined as inferior, and the consequential perpetuation of European domination. With regard to Western oil companies,
White supremacy has manifested itself already in the forms of excessive oil spills and pollution, lack of cleanup, provision of arms to armies and private militaries to violently suppress local populations, destruction of fishing communities and agriculturally dependent families, sustaining corrupt leaders, and collusion with corrupt leaders (Cue, 2006; Silverstein, 2002; Yohannes, 2002).


The battlefield is everywhere.
Paul Robeson
Humanitarianism must be seen in light of the evolving nature of domination.
Paul Robeson’s famous statement regarding the omnipresent nature of warfare did not exclude that which takes place under the auspices of humanitarianism, poverty reduction, and “development.” For instance, as Klare and Volman state:
The largest portions of U.S. aid to Africa are being directed to Angola and Nigeria, the two leading African oil suppliers to the U.S.A. The total security aid to these two countries in Fiscal Years 2004–06 amounted to some $180 million, a substantial increase over the previous three-year period. In Fiscal Year (FY) 2004 they also became eligible to receive surplus U.S. arms under the Pentagon’s Excess Defense Articles (EDA) program. (2006, p. 617) It is certain that U.S. humanitarian aid is following the geographical location of fuel minerals in the Gulf of Guinea. In addition, it is plausible that this humanitarian aid is being used as a means to gain political and commercial favor in certain African countries. Other methods—such as debt relief—may be used as a bargaining chip or an incentive offered to African countries to compel them to accept and comply with American fuel-driven commercial interests in the Gulf of Guinea. The evolving nature of domination suggests that African people must realize that warfare amounts to all methods used to get a people to accept and submit to the will and interests of another country or a foreign group (Liang & Xiangsui, 1999).


The Chad Model of Domination
European countries and economic institutions are trying creative new methods of cooperation in their mission to tighten their grip on the energy sector of African countries. An example is the degree of foreign control being exercised over the economy and energy sector of Chad as a result of the Chad-Cameroon Petroleum Revenue Management Program (PRMP). The World Bank calls this program the model oil-management program to be used for future generations in so-called “developing countries,” and Chad represents the first experiment with this program. This program was designed by the World Bank to control the oil revenue from the $3.5 billion Chad- Cameroon Pipeline Project. The stated goal of the project is to make sure that the majority of oil revenue goes to priority areas of infrastructure and to guard against misappropriation of oil revenue. Under this program, Exxon Mobil— an American oil company and the largest oil company in the world—has been chosen to manage most of the oil production (40%) and infrastructure projects, along with Chevron Texaco and the Malaysian oil company Petronas, who will together manage the remaining 60% of the oil production. Twelve percent of the direct oil revenue from the pipeline project goes to Chad, but first it goes into a Citibank account in London; from there, the money is divided four ways. Ten percent of the proceeds from Chad’s share of the oil revenue goes to the Future Generations Fund (FGF), which accumulates oil revenue to be spent when oil resources dry up. In addition, 72% will be earmarked for critical infrastructure areas: education, health care, social services, and rural development (the World Bank and Exxon Mobil decide what private companies get contracts to do the construction and provide the services); 4.5% goes to community-driven projects in the actual oil-producing region; and 13.5% goes directly to the general budget of the government. Chadian President Idris Deby eventually responded to what he perceived to be an unfair distribution by passing a law that amended the PRMP by eliminating the FGF, earmarking oil revenue for security and purchase of arms, and doubling the money that goes to the federal government’s general budget (England, 2006). The World Bank, Exxon, and Citibank responded by freezing Chadian oil revenue in a Citibank escrow account.


Additionally, the World Bank cut off loan money to Chad, which blocked other international financial institutions from participating with Chad because many of them look to the World Bank before investing in international projects. This demonstrates how interlocking, multinational European-led institutions, governments, and corporations are consolidating their powers to enhance their ability to coerce, manipulate, and control the direction of the McDougal /

African Fuel Minerals 7
foreign and domestic policies in African countries and to secure a central position in the energy sectors of oil-producing African countries. Africa has much to gain through creating healthy commercial relationships from its natural resources; however, considering the nature of Western countries’ social and political zeitgeist and their institutions’ historic and contemporary track record with the African continent, Africa has much to lose in a commercial relationship with the United States that is based primarily on oil, including:
• lower environmental standards, destruction of biodiversity, illegal waste dumping, and water contamination; • internal conflict and violence because of unequal distribution of oil revenue, leading to overreliance on military force;
• increased presence of U.S. military throughout the region (evidenced by the recent establishment of AFRICOM, a unique U.S. military command that oversees strategic military operations in Africa; • high-level governmental corruption; • the possibility of becoming a future battleground for economic, political, and possibly military forms of warfare between non-African countries
competing with one another over critical resources in Africa; • diminished economic independence because of government revenue and hazardous dependence on the stability of foreign markets and geopolitical climates;
• inheriting the enemies of the United States who may want to hurt America by attacking its interests in Africa; • underdevelopment of Africa’s own relationships with its regional neighbors because of the influence of foreign markets;
• failure to cultivate domestic and indigenous human capital because of overreliance on oil revenue; • increased susceptibility to the dictates and possible sanctioning power and manipulation of the United States.
An African Foreign Policy Let us not engage the world hurriedly. Let us not grasp at the rope of wealth impatiently. That which should be treated with mature judgment, let us not deal with in a state of uncontrolled passion. When we arrive at a cool place, let us rest fully. Let us give continuous thought to the future. Let us give deepconsideration to the consequences of things. And this is because of our eventual passing.


Teaching of Ifa (Karenga, 1999) 8
The teachings of Ifa provide a model that African countries in the Gulf of Guinea can use to decide on a culturally centered political response to the Western pursuit of their mineral resources. In this case, “African foreign policy” refers to a strategy developed by African countries that prioritizes the most critical needs of African people and the objectives of African Nations with respect to Africa’s relationships with foreign countries, done within the parameters of Africa’s most traditional principals of communalism, harmony with nature, respect, and honor for ancestors and traditions. Such a policy would free African countries from becoming an appendage to any other political agenda that would require Africa to go about achieving growth and development solely by making itself necessary to a foreign power. It would allow African countries a framework through which they could engage non-African countries. Here I would like to introduce several policy initiatives that may be more beneficial to African communities in the long term. African countries could consider providing tax incentives or tax breaks for African-owned oil exploration, production, and refinement companies, and making long-term investments on downstream refinement technology, so that Africa itself can get the most out of its resources.

Investing in refinement would also cut the costs of purchasing so many refined petroleum products from Western countries. African countries could encourage regional cooperation ad trade by improving waterways, railways, and highways that connect cuntries within Africa to better facilitate intra-African trade, joint development projects between the best of Africa’s growing companies, and Africa meeting its own needs. This would also increase the ability of people in the hinterlan to benefit from goods and services that are available in the urban and coastal regions. The African Union (AU) could require member countries to earmark a minimum percentage of oil revenue for infrastructure projects such a health care, education, and social welfare. The AU Energy Committee shoud require member countries to mandate oil-exploring companies to abde by the cultural traditions and customs of local oil-yielding communities. In addition, the AU Energy Committee should develop its own transparency initiative demanding public disclosure of all profits and expenditures in the energy sectors for member countries; the AU could send its own experts to a region to investigate corruption. The AU Energy Committee could develop standard labor and environmental standards for the production and exploration of resources and the production of refined petroleum goods on the African continent. The committee could also develop strict fines and penalties for the McDougal / African Fuel Minerals 9 violation of those standards. In the case of repeated violation, the AU should also consider, for example, sharply reducing or canceling the flow of oil to certain companies or countries with excessive violations or policies that threaten the humanity or national sovereignty of Africa as a possible method of retaliation or sanction. These measures would centralize the needs of African people, representing a movement toward a more Afrocentric form of political prioritization (Asante, 1998).

References

References
Asante, M. K. (1998, November 6). The Afrocentric idea. Philadelphia: Temple University
Press.
Batson, A. (2006). China and Africa strengthen ties with $1.9 billion in deals. The New York
Times, p. A2.
Chinweizu. (1975). The west and the rest of us: White predators, Black slavers, and the African
elite. New York: Random House.
Cue, E. (2006, September 25). Dictator and diplomat. U.S. News & World Report, 37–41.
Dao, J. (2002, September 19). In quietly courting Africa, U.S. likes the dowry: Oil. The
New York Times, p. A1.
Energy Information Administration. (2006). Country analysis briefs. Retrieved January 15,
2007, from www.eia.doe.gov
England, A. (2006, August 28). President tells oil companies to leave Chad. Financial
Times, p. 4.
Ellis, S. (2003). Briefing: West Africa and its oil. African Affairs, 102, 135–138.
Furero, J. (2002, October 4). New role for U.S. in Columbia: Protecting a vital oil pipeline.
The New York Times, p. A6.
Kambon, K. K. K. (1998). African/Black psychology in the American context. New York:
Nubian Nation Publications.
Karenga, M. (1999). Odu ifa. Los Angeles: University of Sankore Press.
Karl, T. (2002). Symposium proceedings. In O. Yohannes, America’s new frontier: Oil in the
Gulf of Guinea. The Black scholar, 33(2), 2–21.
Klare, M. (2001). Resource wars. New York; Henry Holt.
Klare, M. (2004). Blood and oil. New York: Henry Holt.
Klare, M., & Volman, D. (2006). The African “oil rush” and U.S. national security. Third
World Quarterly, 27(4), 609–628.
Liang, Q., & Xiangsui, W. (1999). Unrestricted warfare. Beijing, China: PLA Literature and
Arts Publishing House.
National Energy Policy Development Group (NEPDG). (2001). The national energy policy.
Washington, DC: U.S. Government Printing Office.
Nobles, W. (2006). Seeking the Sakhu. Chicago: Third World Press.
Ross, M. L. (2006). Does oil hinder democracy? World Politics 53(3), 325–361.
Servant, J.-C. (2003, March). The new gulf oil states. Review of African Political Economy,
30(95), 139–142.
Shifter, M. (2006, May/June). In search of Hugo Chavez. Foreign Affairs, 45–59.
10 Journal of Black Studies
Silverstein, K. (2002). U.S. oil politics in the Kuwait of Africa. The Nation. Retrieved January
15, 2007, from www.thenation.com/docprint.mhtml?i=20020422&s=silverstein
Yohannes, O. (2002). America’s new frontier: Oil in the Gulf of Guinea. The Black scholar,
33(2), 2–21.

 

 

Serie McDougal III is a PhD candidate in the African American Studies Department at
Temple University in Philadelphia, Pennsylvania. Mr. McDougal has attained an undergraduate
degree in sociology from Loras College in Dubuque, Iowa, and an MA in Africana
Studies from the State University of New York at Albany.
McDougal / African Fuel Minerals 11

 

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