Big Men Documentary on Big Oil Politics in Africa
|March 17, 2014||Posted by Staff under Activism, Rent recovery or avoidance|
This 2014 excerpt of Oxfam, Mar 13, is by Ian Gary.
Rachel Boynton’s documentary “Big Men” goes inside board rooms and presidential living rooms, onto oil rigs and the floor of the New York Stock Exchange, after the discovery of a huge oil find in Ghana in 2007.
Who gets a license to explore oil and how? Who’s behind these companies (the “beneficial owners”) and what are their connections to political elites? Who bears the risk and who gets the rewards?
Jim Musselman is the CEO of Kosmos Energy at the start of the film – an affable (and quotable) Texan who had previous success in the oil-rich dictatorship of Equatorial Guinea.
George Owusu founded an obscure company called the E.O. Group and gained a license to explore in Ghana and who, by his telling, “cold-called” Musselman in the Dallas phone book and lured Kosmos to Ghana.
When Erik Solheim, Norway’s environment minister at the time, tells the audience that Ghana should tax oil companies to the hilt, Musselman is stone faced. When Musselman tells the chairman of the Ghana’s state oil company that he didn’t taxes, the chairman assures him, “Oh, we won’t do it.”
The American Petroleum Institute argued against implementation of a US law requiring oil company transparency.
Will Ghana’s citizens benefit from the more than $20 billion the government is expected to receive from oil in the next decade?
Ed. Notes: Oil should benefit everyone. The value of oil in the ground should be paid into a nearby regional treasury. Companies should profit from extracting, processing, and transporting, but should pay over the value of oil in situ to the surrounding populace.
Government could disburse the “royalties” as dividends to citizens, a la Alaska.
At least, that’s what should happen until the oil runs out or people quit burning it to save their world and to save money by switching to solar energy.
Oil is not so different from other resources or lands or locations in general. The rental value of all nature — the money one is willing to pay to own or use them — is what should be our common wealth to share. Meanwhile, taxes on wages, sales, and buildings should be forgotten.
It’s the geonomic recipe and people who care about Africans would do well to help raise awareness of our right to a fair share of Earth’s worth.