31 May 2009

MEND Attacks Oil Infrastructure, Promises More Attacks to Come

While the international naval presence off the east African coast gets most of the attention, the problems in the Gulf of Guinea remain a serious problem that can spill over into a problem impacting your wallet.

No matter where terrorism strikes, it costs everyone down the line.
All it takes is one successful attack, or even one attack that goes badly, and we have a potential huge global economic impact on energy or even a regional environmental problem that could trigger a chain reaction of events throughout that region.
It isn't an accident that last year when oil prices at the pump were so high, it was during the height of conflict between MEND and the Nigerian government. Oil production at that time was down to below 1 million barrels per day. After the loss of 100,000 barrels per day due to pipeline damage of the Chevron facility, Nigeria is pumping 1.76 million barrels per day. That compares to 2.6 million barrels per day back in January 2006.
Study after study suggests the western oil companies do a better job than the Nigerian government insuring the local population gets an economic boost in the local economy from the oil production. The Obama administration must do more to encourage the Nigerian government to pump revenues from oil back into the local economy as part of improving security. It is one of many necessary steps needed to fight the MEND insurgency.

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