Thinking about offshore drilling

This morning I read Investigation into BP Spill Reveals Incompetence, Greed, Complacency and Cynicism — It’s Time for a New Energy Policy, by Michael Brune, Executive Director of the Sierra Club.  The brief article discusses, Deep Water: The Gulf Oil Disaster and the Future of Offshore Drilling, the final report from the Obama-appointed investigative commission. Although the report and its recommendations concern the U.S., it is easy to see the significance for Africa, where oil offshore drilling is on the rise.

I’ve recently posted information about the Scottish company, Bowleven, and its new oil finds off the coast of Cameroon. This is no small story: exploration over the past few months indicates that these discoveries are even more promising than initially thought. And Cameroon is not alone. There are new finds in Nigeria. Ghana is now pumping offshore oil. From Sierra Leone to Angola, the entire Gulf of Guinea region is poised for major, new offshore development. Africa, and in particular the Gulf of Guinea, is one of the new oil “hot spots” attracting both the major oil companies (American, European, Chinese and Brazilian) and the “minnows” or “wildcats,” the smaller, independent companies who used to “explore-discover-sell,” but are now getting in on the drilling action, too.  Spend a few minutes reading the trade papers and you’ll quickly get a sense that this is the new Wild West.

There’s money, and lots of it, to be made offshore. I remember reading once that the oil business in Equatorial Guinea worked well for the Americans. With all the activity offshore, work crews could be helicoptered in every few weeks.  No need to get too close to the abysmal situation on the ground in the country. Oil money fuels the corruption, repression, income inequality and political instability in the country, but the offshore drilling continues without a hitch.

So far, at least. What we hear little about are the environmental risks and dangerous lack of regulation, oversight and response capability that are unfortunately the norm for much of the offshore drilling in the Gulf of Guinea. As I mentioned in a post several weeks ago, I’m looking into the oil spill response plans of Cameroon and other countries in the region. I have yet to see anything reassuring.

More to follow. 

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