Small oil producers like Ghana, Guyana and Suriname could gain as buyers shun Russian crude

Small oil producers like Ghana, Guyana and Suriname could gain as buyers shun Russian crude

A woman sells drinks on a street in Georgetown in Guyana, one of South America’s poorest countries, March 1, 2020. Luis Acosta/AFP via Getty Images
Jennapher Lunde Seefeldt, Augustana University

As the U.S. and Europe cut back purchases of Russian oil, and energy traders shun it for fear of sanctions, the search is on for other sources. Attention has focused on Iran and Venezuela, both of which are led by governments that the U.S. sought until recently to isolate. But emerging and less-developed producers could also play roles.

Among the world’s many oil-producing countries, a few are positioned to jump the list and become increasingly active. They include the West African nation of Ghana (No. 33), along with Guyana (No. 42) and Suriname (No. 69), two small adjoining countries on the north Atlantic coast of South America. All three nations have become oil producers within the past 12 years, working with large companies like ExxonMobil, Tullow Ltd, Chevron, Apache, Total and Royal Dutch Shell.

I study factors that influence levels of democracy and social justice within nations, especially as they relate to natural resources and economic structures. As I see it, these newer producers are in a unique position compared to other oil-exporting nations, such as Nigeria and Ecuador.

In too many cases, developing nations opening their economies to oil production have been expected to accept the terms companies demand, with little room for negotiation and continued exploitation of host communities. In contrast, Guyana, Suriname and Ghana are better situated to obtain favorable terms.

Social scientists coined the term “resource curse” to describe countries that are rich in natural resources such as oil, but have poor economic growth or development. One challenge for these nations is negotiating equitable deals with foreign investors.

Striking better deals

As world markets grapple with the current oil price shock, niche producers are in especially favorable positions to secure advantageous contracts and more favorable terms from international energy companies. For example, oil companies typically pay host countries royalties on their revenues that average about 16%. To date, Guyana and Suriname have accepted fees of less than 6.5% in an effort to attract investors. Under current conditions, they may be able to ask for more during new contract negotiations.

Oil production started in Guyana in late 2019, and currently the country produces over 340,000 barrels per day. Guyana learned from its first block contract with ExxonMobil to demand more “local content” – a key condition in oil negotiations that refers to hiring local workers and using locally made goods and equipment. Natural resources minister Vickram Bharrat has called that agreement, made by a previous administration, “one of the worst ever between a government and an oil company,” and Guyanese officials say they will seek more-favorable terms in future agreements.

Suriname’s new offshore oil discoveries offer potential. Small operations are currently producing about 20,000 barrels per day, and major projects are expected to start by 2025.

Suriname is demanding increased insurance from oil companies in the event of an oil spill, along with prepared emergency cleanup procedures. These processes are continually reviewed and criticized, keeping companies on their toes.

Ghana started oil development in 2007 and now produces about 163,000 barrels per day. However, ExxonMobil pulled out of the country in 2021, reportedly to focus on higher-value projects elsewhere, and depressed demand during the COVID-19 pandemic cut into Ghana’s oil exports.

Men on an offshore oil platform in coveralls and helmets, smiling
Ghanaian President John Atta Mills turns a valve to symbolically open oil production in the Jubilee field off Ghana’s west coast, Dec. 15, 2010. Pius Utomi Ekpei/AFP via Getty Images)

Now, Ghana’s national oil company, Ghana National Petroleum Corp., is taking a larger role, buying shares in oil fields from companies like Occidental Petroleum. Greater state involvement is raising uncertainty about how much access Ghana will offer to foreign oil companies. Some, including Tullow Oil and Aker Energy, are producing there now, but Tullow’s shares have plummeted in recent years, and there has been speculation that it may leave Ghana.

Managing oil income

Nations and states that produce oil or other natural resources often put their royalties into sovereign wealth funds instead of simply adding them to general treasury funds. A sovereign wealth fund is essentially a rainy day pot that the government can use in times of economic stress to continue funding major priorities, such as infrastructure projects and social programs.

Some of these funds, notably in Norway and Alaska, have produced significant benefits for residents. However, some experts argue that they aren’t necessarily well suited for developing nations.

According to this view, the success of these funds depends on many hard-to-control variables, such as whether the country has a diversified economy, its level of corruption and global events like commodity price collapses. And managing the funds requires significant technical skills.

Ghana created an Oil Heritage Fund in 2011, and Guyana and Suriname are in the process of doing so. All three may need assistance to manage these funds effectively and maximize benefits for their citizens.

Transparency and peer support

Recognizing that it can be challenging for developing countries to negotiate with major corporate investors, a number of nongovernmental organizations have become active in this sector. One that’s particularly relevant to oil production is the Extractive Industries Transparency Initiative, which seeks to publicize information about extraction practices, contracts, taxing and spending processes, and more. This benefits the public by tracking where revenue goes and promoting accountability.

The New Producers Group works to help countries manage resources effectively through peer-to-peer relationships and knowledge exchange. Emerging producers can learn from other nations’ experiences and collaborate with other governments on issues that affect them all. For example, the organization has held several events recently, analyzing what the global transition away from fossil fuels means for emerging oil producers, and how these countries can manage the transition while working to end poverty.

As members of both organizations, Ghana, Guyana and Suriname have access to tools that many early producers did not. All three countries have participated in multilateral meetings and exchanges with peers and shared information with local citizens.

Keeping the public informed helps to hold government officials and corporations accountable and promotes public involvement. Citizens and civil society watchdogs criticized ExxonMobil’s first contract in Guyana for not including citizen feedback and being created behind closed doors.

Public involvement and transparency also reduce the potential for corruption, a common problem in resource-rich nations. Transparency International’s Corruption Perceptions Index measures perceived levels of public sector corruption in nations worldwide. On a scale with 100 as the worst score, Guyana and Suriname scored 39 and Ghana scored 43, so all three states have significant room for improvement.

As the world slowly transitions away from fossil fuels, emerging producers are acutely aware of the need to seize the moment for development’s sake, but also seek to meet climate change pledges. Guyana and Suriname may have an asset in the fight against climate change: dense forests that can absorb large quantities of carbon, helping to offset emissions.

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Guyana has unveiled a Low Carbon Development Strategy for 2030 and has partnered with Norway to generate carbon credits for protecting its forests. I see partnerships like these as ways to advance environmental goals alongside the social and economic development that these nations desperately need.The Conversation

Jennapher Lunde Seefeldt, Assistant Professor of Government and International Affairs, Augustana University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Making religious sense of climate change on small islands

Making religious sense of climate change on small islands

(RNS) — The middle of a war that is grabbing the world’s attention may not be the best time to reflect on climate change. But the latest report from the U.N.’s Intergovernmental Panel on Climate Change shows that one crisis is not taking a pause while we settle another.

The news from this sixth IPCC assessment, unsurprisingly, is not good.

As The New York Times summarized it, “The dangers of climate change are mounting so rapidly that they could soon overwhelm the ability of both nature and humanity to adapt, creating a harrowing future in which floods, fires and famine displace millions, species disappear and the planet is irreversibly damaged.”

Nowhere does the future appear more harrowing than for the inhabitants of small islands, from the Caribbean to the South Pacific, whom rising seas threaten to literally wipe off the map. But as imminent as the physical danger is, how the inhabitants reckon with what they are facing is often at odds with the scientific understanding.

In a chapter on small islands, the IPCC report to its credit recognizes that “material and non-material symbols that express collective meaning” are “often overlooked in adaptation policies and plans.”

As it happens, many of these communities are composed largely of Bible-believing Christians, and what they believe matters because “(e)xternally-driven adaptation efforts in rural small-island communities that exclude community priorities, ignore or undervalue IKLK (indigenous knowledge and local knowledge), and are based on secular western/global worldviews, are often less successful.”

In other words, it is important to know where the affected communities are coming from — not least, religiously.

Take the outer Fijian island of Ono. When Amanda Bertana, a sociologist at Southern Connecticut State University, went there to study relocation plans, she found a devout Christian population that believes that rising sea levels are the result of God’s disapproval of their immoral behavior and, at the same time, that they won’t be flooded into oblivion.

Why not? Because in the ninth chapter of the Bible’s Book of Genesis, God promises Noah after the waters recede, “Never again will all life be destroyed by the waters of the flood.”

For Bertana, this rejection of the secular narrative of coastal degradation is “a form of emotional self-preservation” — one, to be sure, that undermines efforts to get them safely relocated. This comforting promise not to flood the Earth again has been widely embraced among sea-level-threatened islanders.

But University of Oxford geographer Hannah Fair, also working in the South Pacific, has found alternative climate-related interpretations of the Noah story.

Some Fijians see in Noah a model for disaster preparation. Others, in a less orthodox interpretation, regard Noah as a villain who used his wealth for self-protection and those who drowned as victims.

Meanwhile, on the Caribbean island of Trinidad, University of Texas anthropologist Brent Crosson found that the Afro-Christian denomination of Spiritual Baptists has adopted a biblical understanding of environmental destruction based on a (mis-)reading of Psalm 24.

That psalm begins, in the King James Version, “The Earth is the Lord’s.” But since the English creole spoken in Trinidad does not employ the possessive apostrophe-s, the Spiritual Baptists say, “The Earth is the Lord.”

This has led them to see the Earth as God’s body, suffering harm from human activity. That includes the activity of oil companies, which despite providing Trinidad with significant wealth nevertheless are considered vampires consuming the planet’s lifeblood.

Writing in a forthcoming collection of essays, “Climate Politics and the Power of Religion,” Crosson sees in this interpretation of Scripture an “ethics of injury” that “forms the basis not only for empathy but for new legal regimes that, despite many challenges in implementation, define the Earth as a person with rights.”

Those who track religion and climate change tend to divide the world into Pope Francis-type progressives and white evangelical deniers. But there are more environmental theologies in heaven and earth, dear reader, than are dreamt of in their philosophies.

(The views expressed in this opinion piece do not necessarily reflect those of Religion News Service.)

READ THIS STORY AT RELIGIONNEWS.COM

Andrew Young, at 90, views his civic, political roles ‘as a pastorate’

Andrew Young, at 90, views his civic, political roles ‘as a pastorate’

(RNS) — Andrew Young, a former civil rights leader, Georgia congressman and United Nations ambassador, doesn’t use “the Rev.” before his name much.

But the man who directed Martin Luther King Jr.’s Southern Christian Leadership Conference in the 1960s said every stage of his adult life has been a form of ministry.

“I have viewed everything I’ve done as a pastorate,” Young, a onetime small-church pastor, said in a Wednesday (March 2) interview. “I really thought of Congress as my 500-member church.”

Likewise, he recalled making “pastoral calls” and praying with ambassadors representing some of the 150 countries that were then U.N. members.

“My model for almost every job I’ve had has been the model of a pastor servicing a congregation,” Young said. “As the mayor of Atlanta, I just had a million-member church.”

Born into, raised in and ordained by the Congregational Church — now known as the United Church of Christ — he has been a member of Atlanta’s First Congregational Church, a predominantly Black house of worship, since 1961. As he prepares to turn 90 on March 12, he continues to preach there on the third Sunday of each month.

Young is marking his birthday with a four-day celebration from March 9–12, starting with a livestreamed “Global Prayer for Peace” worship service at the Atlanta church, followed by a peace walk, debut of the book “The Many Lives of Andrew Young” and a sold-out gala.

The graduate of what was then called Hartford Theological Seminary spoke to Religion News Service about voting rights battles then and now, religious aspects of the civil rights movement and his memories of working with King.

The interview has been edited for length and clarity.

You intend to preach on peace and reconciliation to mark your 90th birthday. Has Russia’s invasion of Ukraine changed your planned message?

No, it hasn’t. Russia’s invasion has made my message even more central to the problems we’re having around the world. And Russia’s invasion is tragic and it’s even more tragic because it’s televised. But there are similar situations in many, many countries — in Latin America, Africa and other parts of Europe. And in these United States, we’re having a battle to protect the right to vote here in 2022.

You originally had plans to pursue dental school instead of seminary. What made you change your mind and do you ever regret the route you ended up taking?

My father chose dentistry. I never chose dentistry. Even as a 12-year-old, though I might have been working in a dental laboratory that my father wanted me to learn the business, I knew I didn’t want to do anything that confined me to an office. I’ve always been too full of energy and too rambunctious to stay in one place.

Even though you ended up doing ministry of different sorts, you also didn’t stay in one pulpit as some people pursuing ministry do.

We likened the ministry of the civil rights movement to the ministry of Paul and the apostles. Martin had one church. Most of us were ordained. But we pastored communities, cities, and we saw ourselves as pastors to the nation and to the world.

You were a staffer and later president of the National Council of Churches, which has risen and declined in prominence over the years. What do you consider the state of ecumenical relations now?

We have not been able to worship in our congregation for two years now. But we have (online) services, and I usually preach every third Sunday. And I get calls from as far as Switzerland and Tanzania, California, London, where friends somehow find it.

I don’t know what state the organized church is (in). But I think people are becoming and have become more seriously spiritual than at any time in my life.

The book “The Many Lives of Andrew Young” notes that when you entered the civil rights movement, you wrote, “I’ve had about enough of ‘church work’ and am anxious to do the work of the church.” Is there something about the movement’s religious aspects that many may not know?

That it was grounded in social gospel and in biblical theology. That Martin Luther King did his doctorate in the time of people like (theologians) Paul Tillich and Reinhold Niebuhr, and he carried Howard Thurman’s little book “Jesus and the Disinherited” in his briefcase all the time. And during the civil rights movement, we had worship every night.

You mentioned voting rights earlier. How do you feel about the state of voting rights, given that you helped lead the Southern Christian Leadership Conference as it sought improved voting rights and now all these years later, it’s still a topic of contention?

I’m shocked that we still have to struggle for the right to vote.

And I think that the changes in Georgia — they are structured now to steal the election. And the voting rights bills that were sent to, I think, some 30 states, they’re the same bill with the same level of corruption and the licensing of voter control. And we don’t have a Congress or a Supreme Court that’s willing to stand up now.

There’s a lot of photos in the new coffee table book about you. Are there any that relate to your religious life, your ministry, that mean the most to you?

Well, actually the one that shows me getting beat up in St. Augustine. That was probably the biggest test of my faith because I ended up leading about 50 people, mostly women and children, into a group of a couple hundred Klansmen who had been deputized by the sheriff to beat us up. I left them on one side of the street and I crossed over, trying to reason with the Klan. I was doing pretty good until somebody came up behind me and hit me with something, and then I didn’t remember anything.

But that was (shortly) before the Congress voted to pass the ’64 Civil Rights Act. And I got up and I went down to the next corner and tried to talk to the Klan on that corner. And fortunately there, when they swung at me, I ducked. And a great big policeman, biggest policeman I’ve ever seen — he was about six-six, six-seven — he walked up and said, ‘Let these people alone. You’re going to kill somebody.’ And he moved the Klan out of the way, and we were able to march.

That was one of the times that nonviolence was really on trial.

You are continuing to preach at First Congregational in Atlanta about every month — often at services featuring jazz music. It doesn’t sound like you’re anywhere near just putting your feet up at age 90.

No. There’s a song, old spiritual, that folks used to sing: “I keep so busy serving my Jesus, I ain’t got time to die.”

I just feel blessed. I have lived a blessed life. You can’t earn it, but I’ve tried to be faithful.

TERRAFORM: An Interview with PROPAGANDA

TERRAFORM: An Interview with PROPAGANDA

It is clear to see that brokenness pervades our world as we look at the news headlines. We encounter the same brokenness in our communities and households. But when we recognize our ability to impact the culture that surrounds us in the same way we are impacted by it. UrbanFaith sat down with artist, entrepreneur, and now author PROPAGANDA to discuss his new book Terraform: Building a Better World. Full interview is above, more information on the book is below.

In this deep, challenging, and thoughtful book, Propaganda looks at the ways in which our world is broken. Using the metaphor of terraforming—creating a livable world out of an inhospitable one—he shows how we can begin to reshape our homes, friendships, communities, and politics. In this transformative time—when we are redefining what a truly just and equitable world looks like, and reflecting on the work that needs to be done both in our spiritual and secular lives—Propaganda rallies readers to create that just world. He sheds light on how nefarious origin stories have skewed our views of ourselves and others and allowed gross injustices, and demonstrates how great storytelling and excellent art can create and shape new perspectives of the world and make all of us better.

The Freedom of Discipline: A Reflection

The Freedom of Discipline: A Reflection

You’re going to rebel once you get to college,” they said to me.

“They” were my high school friends. I was always the Goody Two-Shoes of the group and they always let me know just how weird I was and just how much they hoped I would change my ways. My friends believed that I was a Goody Two-Shoes because my mom was strict. She had very specific guidelines about with whom and where I could socialize when I was in high school. While I thought some of the rules were a little extreme, as all teenagers do, I mostly understood and always respected them.

However, it wasn’t the rules that kept me disciplined. It was me.

Well, it was actually the Holy Spirit. I just didn’t know it back then. 

While I’m grateful for my mother’s rules, and even plan to repeat many of them with my own children to ensure their safety, I wasn’t interested in being a rebellious child in the first place. I had zero interest in parties. I never desired to take a drink. Sneaking out of the house was not on my radar. I loved to study. I was completely obsessed with being in the band and on the speech team. My idea of a good time was diving into a good book and grabbing a white chocolate mocha from the local Caribou Coffee. To put it frankly, I was genuinely uninterested in what a lot of other teens were into. I never understood why kids my age were interested in certain activities and substances that would jeopardize their health and safety for a few fleeting moments of fun. It just wasn’t worth it to me.

Fast forward to college.

To be honest, I was so nervous about college for this very reason. I knew that the college atmosphere was about drinking, partying, and being as irresponsible as possible with your newfound freedom. I figured I’d struggle making friends due to my “Goody Two-Shoes” nature. Who wants to hang out with the girl who would rather read a book than go to a party?

I was right.

When many of my college peers found out that I wasn’t into going to the club on Friday night, they showed no interest in pursuing a friendship. Others befriended me, but they also tried to make it their mission to get me to engage in certain activities that I was not comfortable with. They were convinced that I was too uptight and “just needed to loosen up a bit.” Eventually, I was the one walking away from those friendships.

Thankfully, I found some friends who accepted me for who I was, but I couldn’t help but wonder what was it about me that wasn’t interested in what everyone else my age was interested in?

Let’s be real here. Your college years and your twenties are known for happy hours, going to the club, random hookups, and the like. Yet, not only was I uninterested in the typical idea of fun, it actually made me feel rather uncomfortable and I avoided it at all costs. The big question I couldn’t answer at the time was, “why?” 

When I was 16, I began slowly pursuing a relationship with Christ. I started to learn even more about Jesus as I matriculated through college. During my senior year, I completely surrendered my life to Christ. My heart was all-in and I never looked back. 

The stronger my faith grew, the more disciplined I became in my thinking and my actions. However, I didn’t make the connection at the time between my faith and my personality. I thought my personality was just one that didn’t identify with the same thought patterns and behaviors as many other people I knew.

“Therefore we were buried with him by baptism into death, in order that, just as Christ was raised from the dead by the glory of the Father, so we too may walk in newness of life. For if we have been united with him in the likeness of his death, we will certainly also be in the likeness of his resurrection. For we know that our old self was crucified with him so that the body ruled by sin might be rendered powerless so that we may no longer be enslaved to sin, since a person who has died is freed from sin” (Romans 6:4–7, BSB).

The beauty of a relationship with Christ is that we get to walk in freedom. I think sometimes this freedom gets taken for granted. It doesn’t always feel like a super spiritual feeling that we may have imagined it to be. We may not feel like we are floating on air, dancing in the fields with butterflies, and smiling from ear to ear on a daily basis. In fact, many of our days will be challenging, stressful, and mundane. That does not negate the fact that we are still walking in freedom. Freedom from sin, freedom from the Law, freedom for our future, and freedom to walk in the fruit of the Spirit.

Walking in this freedom may look like a loss of interest in certain activities as the Holy Spirit reveals to you their sinful nature. Walking in freedom might also look like a newfound discipline in the habits you set for yourself and the goals you desire to accomplish. Perhaps this freedom looks like a care for your future that you didn’t have before. Prior to Jesus, you were living day by day, taking life as it came, without much of a plan for tomorrow. Now, you look forward to the future and align your daily actions with that hope.

I was baptized when I was 16. I accepted Jesus as my Lord and Savior, but my 16-year-old brain didn’t understand the vastness of the freedom that I was walking in. All I knew was that my thought process and desires were much different than those of my peers. I couldn’t explain why, but I was confident in my choices. While others described my discipline to be restrictive, I found my discipline to be the most freeing thing ever, and I still do. The choices I made 10 years ago have resulted in abundant fruit as I enter middle adulthood. By following Christ, I am not a slave to the consequences of poor choices I could have made when I was younger. Seeing the fruits of my labor motivates me to continue with a more disciplined lifestyle now because I know that I will continue to bear fruit as I get older.

I’m now a 30-something year-old married mama of two little girls and the need for discipline is even more prevalent today than it was 10 years ago, but for different reasons. It’s easy to feel like children, discipline, routines, structure, etc., take away the freedom from your life. Adulthood reminds you that the ways of your younger years just don’t cut it anymore. The donuts you ate for breakfast show consequences around your midsection and at your next doctor’s visit. The late nights you once tolerated in your twenties result in poor job performance the next day when you’re in your thirties. As a parent, your life now revolves around the needs of your children. You lay down your selfish desires to serve your family. You wish you could have more time to yourself, but your children need to eat lunch. All of these realities can, understandably, make you long for those younger years that “felt freer” than the ones you are living in. 

Much like submission to Christ results in freedom from sin, submission to the discipline that is required of adulthood results in freedom from the long-term consequences that lack of discipline will result in.

Discipline is freeing.

The Christian life is freeing.

But we must value the result of freedom more than the short-term pleasures of sin.

The fruit you will bear as a result will always be worth it.