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Nigeria on the Edge, AgainBy Douglas Farah
With the recent hostage-takings by armed militants in the Niger Delta, the disruption of key oil supplies, and the simmering religious tensions in the north where 17 people have been killed and 30 Christian churches burned, Nigeria is again teetering on the edge of chaos. About 20 percent of Nigeria's oil production has been shut down, sending jitters through the market. More troubling is that fact that there is no end is sight or realistic solutions for the current crisis. Saturday's abduction of nine foreign oil workers, including three Americans, is the latest sign of the growing militancy of the well-armed militias that now control much of the Delta. Many of their grievances are legitimate. The international oil companies have left vast swaths of the once-pristine Delta an environmental wasteland. The burning of gas, the oil spills and other pollution have ruined the water, killed the fishing and spoiled the hunting there. The history of abuse and misuse of the oil companies is appalling. But the real concern of the militias is unlikely to be the legitimate problems. The real interest is in protecting the criminal networks that steal or "bunker" oil before it gets put into the official oil network. While Nigeria officially pumps 2.6 million barrels a day, the real number is more like 3.3 million barrels. Almost 750,000 barrels a day are taken before it enters the production line and sold illegally, generating huge, illicit revenues. Much of the crude is sold to China and North Korea at discounted prices. If the selling price of the stolen oil is $35 a barrel, as it is now, that yields $184 million a week in illicit proceeds, or $9.6 billion a year. If that kind of flow of illicit money does not scare you, then nothing will. Here is the full blog.
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