African oil - a vital US interest?
Petrodollars are common currency nowadays, but I first heard of a 'petro-state' recently when the Baltimore-based Catholic Relief Services urged US President George W. Bush to insist on 'respect of human rights, the promotion of good governance and democracy, and the transparent, fair and accountable management of oil revenues' in dealing with African oil suppliers.
Generous with funds to combat Aids, contain terrorism and promote economic growth and political stability, Mr Bush was outraged when an African journalist asked whether the need to reduce dependence on Saudi Arabia - which accounts for 25 per cent of US oil imports - inspired last week's tour. 'Well, [there are] conspiracy theorists about everywhere, I guess,' he exclaimed, 'but that's one of the most amazing conspiracies I've heard!'
As an oilman himself, and the son of another president who became an oil millionaire, he should not have been surprised. Vice-President Dick Cheney is also an oilman. Moreover, Assistant Secretary of State for African Affairs Walter Kansteiner says, 'We are looking at a 2005 estimate that 20 per cent of our oil imports will be coming from Africa, and that's also going to grow rapidly and markedly in the years after 2005. Our children and our grandchildren are much more likely to have serious business, financial, political, commercial links to Africa.'
Why, then, Defence Secretary Donald Rumsfeld's coy claim that America has 'no vital interests' in Africa? Actually, Mr Bush has demonstrated considerable sensitivity to Africa, receiving no fewer than 22 African heads of state during his first two years. Nigeria's President Olusegun Obasanjo, who enjoys close links with Singapore and persuaded the Singapore International Foundation 10 years ago to organise a three-day conference on the Relevance of Singapore's Experience for Africa, visited the White House twice.
Nigeria is sub-Saharan Africa's biggest petro-state, and a major supplier to American refineries of premium crude that is high in gasoline content. With Angola, Libya, Algeria and Egypt, it accounts for 85 per cent of Africa's output. Sub-Saharan Africa has proven reserves of 75.4 billion barrels, or 7 per cent of the global stock, and a petro-belt stretching from Angola to the islands of Sao Tome and Principe. African oil reaches the US in half the time taken by Middle Eastern oil.
The US needs 17 million barrels every day. Domestic sources provide only 2 per cent of the oil and 3 per cent of the gas that Americans consume. As Admiral William Crowe, former chairman of the joint chiefs of staff, bluntly declared in 1991, the US would not have bothered defending Kuwait if it had exported bananas. America's chief executive would thus be failing in his duty if he did not seek safe new sources of oil.
But war-torn, disease-ridden sub-Saharan Africa's problems must be resolved before it can emerge as a steady supplier. Passionate evangelism, a humanitarian agenda and America's commendable Africa Growth and Opportunities Act may not suffice. The oil industry must also be rescued from unscrupulous exploitation so that earnings of more than US$200 billion are used for public welfare. These funds helped finance Angola's civil war for three decades. They enriched Nigeria's military dictators before Mr Obasanjo's election. Massive oil finds have turned the Niger Delta into a hotbed of warring factions. Properly handled, the millions of petrodollars that impoverished, landlocked Chad will earn from Exxo Mobil could make all the difference to the human condition.
But 25 per cent of Africa's oil revenues simply disappear. Corrupt regimes are not entirely to blame, for global consortiums pay them huge under-the-table subsidies. Like the Catholic Relief Services, the Association of Episcopal Conference of the Region of Central Africa blames 'high illiteracy, mortality and malnutrition rates' on complicity between oil giants and crooked politicians.
Organisations like Global Witness and Transparency International want corporations to publish how much they pay and to whom. Reflecting Mr Obasanjo's views, the Singapore conference also stressed the need for 'complete accountability, transparency, openness and separateness between personal assets and public funds'.
Mr Bush can help to realise that hope if, instead of denying any interest in African oil, he acknowledges that transparent legal measures to further America's legitimate economic interests in Africa would also benefit millions of Africans.
Sunanda Kisor Datta-Ray is a former editor of the Statesman newspaper in India
