[Congressional Record Volume 151, Number 98 (Tuesday, July 19, 2005)]
[Extensions of Remarks]
[Pages E1534-E1536]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          CALL FOR MORE ROBUST TIES WITH GULF OF GUINEA REGION

                                 ______
                                 

                         HON. CHARLES B. RANGEL

                              of new york

                    in the house of representatives

                         Tuesday, July 19, 2005

  Mr. RANGEL. Mr. Speaker, I rise today to praise the release of a very 
timely report which documents an issue of growing importance to the 
United States. The report, entitled

[[Page E1535]]

``Breaking the Oil Syndrome: Responsible Hydrocarbon Development in 
West Africa'', was commissioned by the Congressional Black Caucus 
Foundation, and argues that the United States must work to build a 
strategic alliance with energy producing Nations in the Gulf of Guinea 
region of West Africa--in an attempt to both broaden the supply of U.S. 
energy imports, and provide economic and political development to the 
West Africa region.
  The call for an alliance is warranted for several reasons. Firstly, 
the demand for energy resources within the United States, and globally, 
is predicted to surge in coming years. China and India with their 
enormous populations; and burgeoning economies, promise to one day 
rival the United States in terms of energy demand. Even when 
considering Western demand alone the situation is concerning. Just this 
month, Saudi Arabian officials predicted that the Organization of the 
Petroleum Exporting Countries (OPEC) will be unable to meet projected 
western demand in 10 to 15 years.
  This increasing demand comes at a time when the U.S. needs to shift 
its reliance away from its traditional energy providers. The events of 
9/11 demonstrated just how much of a liability our dependence on Middle 
East oil has become. Our over-dependence on Middle East oil--and our 
subsequent influence with Middle East governments--is a source of 
resentment and hostility in the region.
  This contributes to regional instability, which in turn helps to keep 
the price of energy resources high. Some have even posited that our 
dependence on Middle East oil weakens our posture in addressing the 
global war on terrorism. Equally concerning is the fact that Venezuela, 
a major non-Middle Eastern energy exporter, is not exactly an ally of 
the current U.S. Administration, and stability in that country is 
tenuous at best.
  With all of these worrisome issues swirling around the current 
international energy landscape, the Gulf of Guinea offers the United 
States a potentially significant and fruitful energy partnership--if we 
lay the proper foundation now. The Gulf of Guinea currently accounts 
for 14 percent of U.S. oil supply, with the region possibly poised to 
increase its share of U.S. imports to over 20 percent in coming years 
if the requisite investment and security environment is further 
developed. The region's share of global oil production is already 
predicted to rise from around 4 percent to nearly 6 percent by 2007, 
and attract $40 billion in investment within the current decade.
  As such the nations of the Gulf of Guinea--Nigeria, Chad, Equatorial 
Guinea, Gabon, and Sao Tome and Principe (along with Angola)--must 
engender the focused and balanced engagement of U.S. policy makers.
  With the region also predicted to garner over $150 billion in oil-
related government revenues by 2010, opportunities and pitfalls are 
ever-present. The region still suffers from serious deficiencies in the 
area of anti-corruption, transparency, and the rule of law. With such 
large financial windfalls predicted, the CBCF report asserts that the 
United States must work closely with its partners in the Gulf of Guinea 
region to help strengthen their capacities in this regard. If they 
fail, the results could be disastrous.
  Oil wealth has rarely translated into socio-political stability for 
most developing countries. In fact it has often had the opposite 
effect, because the institutional safeguards were not in place to 
ensure that the government was accountable to its citizens, and the 
country as a whole benefited from its own wealth. We can not allow that 
to happen in the Gulf of Guinea, especially considering the golden 
opportunity we now have.
  Again, I thank the Congressional Black Caucus Foundation for their 
report. I must especially commend the leadership of Congressman William 
Jefferson, Chair of the CBCF, as well as Dr. Maya Rockeymore, outgoing 
CBCF Vice President of Research and Programs, for their leadership in 
bringing this important issue to the forefront of the policy arena.

  [From the Congressional Black Caucus Foundation, Inc., July 7, 2005]

Congressional Black Caucus Foundation Calls West Africa a Strategic But 
        Underutilized Partner in Quest for U.S. Energy Security

       Washington, DC.--As gas prices continue to skyrocket, the 
     debate over how to address America's energy crisis has 
     intensified among policymakers, analysts, and other key 
     opinion leaders. Simultaneously, the U.S. faces increased 
     international pressure to provide more aid, fair trade, and 
     debt relief assistance to Sub-Saharan African countries.
       A new study by the Congressional Black Caucus Foundation 
     (CBCF) entitled, ``Breaking the Oil Syndrome: Responsible 
     Hydrocarbon Development in West Africa,'' argues that the 
     U.S. must link these seemingly disparate concerns by forming 
     a strategic alliance with West African hydrocarbon states 
     that can help secure U.S. energy needs while advancing human 
     and infrastructure development goals in West Africa.
       ``The fact of the matter is that West Africa is vital to 
     the energy security of the United States,'' said Dr. Don 
     Tharpe, President and CEO of CBCF. ``The region is poised to 
     increase the world supply of oil but it has been largely 
     overlooked as a key U.S. partner in this regard.''
       ``Changing global geopolitical dynamics have once again 
     increased U.S. interest in Africa and its natural resources. 
     Yet, it will not be enough to conduct business as usual in 
     West Africa,'' said Dr. Maya Rockeymoore, former CBCF Vice 
     President of Research and Programs. ``The U.S. must embark 
     upon a mutually beneficial alliance that increases U.S. 
     energy security while promoting sustainable development in 
     African oil-producing countries.''
       The paper highlights that a mutually beneficial dynamic 
     engagement framework will be especially important as the 
     demand and competition for scarce oil resources increases in 
     countries like China and India.
       According to Paul Michael Wihbey, the lead author of the 
     study and President of Global Water and Energy Strategy Team, 
     ``This report makes recommendations that could have 
     significant implications for U.S. energy security over the 
     short and long terms,'' Wihbey says. ``The U.S. has a very 
     important opportunity at this critical juncture in world 
     history. The country could benefit tremendously if it 
     recognizes that good governance, infrastructure, and human 
     development goals are keys to the security and sustainability 
     of oil-exports from West African hydrocarbon states.''
       The CBCF maintains that investment in alternative, non-
     carbon energy sources represents the greatest possibility for 
     reducing U.S. dependence on foreign oil sources. Yet the 
     Foundation recognizes that it will take time to develop mass 
     technologies that utilize alternative energy sources across 
     the various carbon-dependent industries. While it is 
     important to support the development and application of non-
     carbon energy sources, in the meantime, it remains vitally 
     important to diversify how and where the U.S. imports its 
     oil.
       The paper will be released to the public on Tuesday, July 
     19, 2005 at 9:30 a.m. in the Members Room of the Library of 
     Congress (Jefferson Building). The forum will be hosted by 
     Congressman William J. Jefferson, Chairman of the 
     Congressional Black Caucus Foundation, and will feature 
     Members of Congress, subject matter experts, key Bush 
     Administration officials, private sector participants, and 
     members of the African Diplomatic Corps.
       The CBCF, established in 1976, is a nonprofit, nonpartisan 
     public policy, research and educational institute focused on 
     leadership education, public health, economic development, 
     and African globalism.


                           EXECUTIVE SUMMARY

       Government officials and observers have consistently 
     asserted that the United States has a strategic energy 
     interest in hydrocarbon development in West Africa. Worldwide 
     growth in energy consumption is consistently outpacing 
     production, and reports indicate that in the United States 
     demand for oil may reach 28.3 million barrels per day by 
     2025. Coupled with energy price volatility, political 
     instability, and supply uncertainty, many have recognized 
     that the United States can ill afford to remain predominately 
     dependent upon oil-imports from certain regions. 
     Simultaneously, this recognition has generated a chorus of 
     calls for more investment in alternative energy sources and 
     ``greater diversity of world oil production.''
       Ultimately, investment in alternative, non-carbon energy 
     sources represents the greatest possibility for reducing U.S. 
     dependence upon foreign oil sources. Nevertheless, it will 
     take some time to develop mass technologies utilizing 
     alternative energy sources across the various carbon-
     dependent industries. While it is important to support the 
     development and application of non-carbon energy sources in 
     the meantime, it remains vitally important to diversify how 
     and where the U.S. imports its oil.
       There is no doubt that certain countries in Sub-Saharan 
     Africa could be the source of expanded U.S. oil imports. Yet, 
     despite calls to look beyond traditional oil markets and 
     allies, efforts to create a mutually beneficial framework 
     that systematizes relations between the U.S. and West African 
     hydrocarbon states have fallen on deaf ears. Paradoxically, 
     as the U.S. explores its sourcing options in the face of a 
     looming energy crisis, its narrow vision with regard to 
     broadening the nature of its engagement with West African 
     states has prevented it from establishing dynamic 
     relationships that could ensure energy supplies, while 
     forging necessary alliances in the global war against 
     terrorism.
       In the end, the United States is missing an opportunity to 
     connect its quest for energy security to an array of other 
     important initiatives, such as the promotion of good 
     governance practices, the campaign to enhance human 
     development in Sub-Saharan Africa, the reduction/eradication 
     of poverty, and the war against terrorism.
       The fundamental conclusion of this report is that the 
     United States can capitalize on the interconnectedness of 
     these initiatives by recognizing that good governance, 
     infrastructure, and human development are the keys to the 
     development, security, and sustainability of oil-exports from 
     West African hydrocarbon states. Only by aggressively 
     pursuing these measures can the United States and West 
     African nations reap the benefits of oil-import/exports and 
     enhanced trade opportunities.

[[Page E1536]]

       Systematizing these relationships through a dynamic 
     engagement framework can result in mutually beneficial 
     outcomes, such as: a reduced reliance on oil from more 
     volatile regions; the development of additional strategic 
     partners in the war against terrorism; an enhanced exports 
     market for U.S. and African goods and services; a practical 
     ``oil-revenue for poverty-reduction policy'' framework that 
     reduces African reliance on foreign aid; and the 
     strengthening of democratic regimes and indigenous efforts to 
     move African authoritarian regimes closer to democracy.


                            RECOMMENDATIONS

       These recommendations, in keeping with democratic foreign 
     policy principles including the promotion of good governance, 
     economic development, human rights, and enhanced relations 
     with the United States and the African-American community, 
     are submitted for consideration. Many of the recommendations 
     echo calls already made by major stakeholders interested in 
     ensuring sustainable development in the West African energy 
     sector.
     U.S. Government
       The United States Congress should: Establish immediately a 
     bi-partisan Congressional Advisory Committee that should: 
     Meet with oil companies and other interested parties to 
     discuss how to promote sustainable development through 
     innovative energy sector initiatives. Host a summit with 
     African heads of state and other officials to promote the 
     importance of West Africa-U.S. energy relations. Prepare 
     legislation to establish a Commission for Sustainable 
     Development in West Africa.
       Establish a Commission for Sustainable Development in West 
     Africa that should: Consider legislation declaring West 
     Africa of strategic interest to the United States. Conduct 
     meetings with experts to gather information about improving 
     and coordinating U.S. aid, trade, economic, environmental, 
     and counterterrorism efforts in the region. Review efforts by 
     African goverments, oil companies, international 
     institutions, and non-governmental organizations to advance 
     development goals using innovative revenue-sharing models. 
     Formulate a strategy for engaging West African states in a 
     mutually beneficial partnership that seeks to promote 
     specific economic, social, political, infrastructure, 
     environmental, and counterterrorism goals.
       Support the development of a world-class West African 
     Science and Technology Institute that offers a curriculum 
     that promotes excellence in higher education and research and 
     development in science and engineering. The ultimate goal 
     will be establish an education and training vehicle that will 
     enable Africans to have a key role in improving Sub-Saharan 
     Africa's living standards through increased productivity, 
     economic growth, and diversification.
       Provide additional debt relief to West African hydrocarbon 
     states contingent upon achieving measurable targets related 
     to financial transparency and good governance benchmarks.
       Require federal grant recipients, West African hydrocarbon 
     states, and oil companies to submit documentation of capacity 
     building programs related to human development initiatives. 
     Submit capacity building proposals to the aforementioned 
     Commission for review and recommendations.
       Review U.S. businesses operating in the area to ensure 
     compliance with the U.S. Foreign Corrupt Practices Act.
       Provide additional incentives to U.S. businesses to 
     purchase goods and services from AGOA-eligible countries.
     West African Hydrocarbon States
       Governments of West African oil-producing nations should:
       Establish oil ministers whose appointments are approved by 
     parliamentary bodies.
       Publish information on all oil revenues and participating 
     oil companies.
       Establish advisory bodies with representation from 
     political parties, civil society groups (e.g., human rights 
     activists and advocates for women and children), independent 
     third parties (e.g., World Bank or major investment banks 
     with stated and monitored priorities that earmark significant 
     portions of oil revenue for investment in infrastructure and 
     education), and members of the media.
       Make public any recommendations on reforming real property 
     laws conducted in the last five years.
       Consider legislation that encourages relinquishment of 
     inactive marginal fields by foreign companies to indigenous 
     operators willing to develop their residual reserves through 
     enhanced recovery technologies.
       Submit to an audit of oil revenue distribution conducted by 
     representatives of the International Monetary Fund, the World 
     Bank, USAID, and ECOWAS.
       Charge the appropriate parliamentary committees with 
     examining the benefits of creating a Development Trust Fund 
     based in Nigeria to fund the indigenous petroleum industry 
     and to support a Gulf of Guinea School of Petroleum 
     Technology (possibly located in Port Harcourt), with the 
     cooperation and assistance of USAID.
     Oil Companies
       Oil companies interested in West African oil-producing 
     nations should:
       Make public annual audits conducted by reputable 
     international firms relating to activities in West Africa to 
     augment participation in the concept of ``publish what you 
     pay'' initiatives.
       Immediately publish oil-field specific and cumulative 
     environmental and social impact assessments.
       Participate in and expand local content and joint venture 
     projects with indigenous operators/businesses with verifiable 
     long-term social, cultural, and historic ties to the region/
     country.
       Conduct capacity building and technology transfer 
     initiatives in order to provide valuable skill sets to 
     indigenous employees that may be used across different 
     economic sectors.
       Consider establishing at least one oil refinery for the 
     host country.
       Collaborate with host governments to relinquish or farm out 
     inactive marginal fields, make their technical data 
     available, and finance (if possible) local operators that 
     will develop them.
       Reach out to the African-American community, both through 
     encouraging African-American owned businesses to take an 
     active role in the enterprise of West African development and 
     through the informational promotion of positive impacts that 
     oil companies have in the region.
     International Financial Institutions (IFIs)
       International financial institutions should:
       Require demonstrated progress on enforcing laws relating to 
     good corporate governance, including sanctions by the 
     government for violations of procurement regulations.
       Ensure that governments do not create a second, separate 
     system of oversight for revenues generated by new oil fields.
       Require that governments support the public dissemination 
     of information about oil revenues by helping to offset costs 
     of reproduction, distribution and communication of 
     information to the public.
       Ensure that public documents related to oil exploration and 
     oil revenues are made available in both the official language 
     and the indigenous languages spoken most predominately 
     throughout the country.
       Support and publish an independent assessment of the human 
     development constraints facing citizens of Chad, Congo-
     Brazzaville, Equatorial Guinea, and Sao Tome and Principe, as 
     well as all other hydrocarbon states in the near future.
       Establish and publish benchmarks for determining whether a 
     country is granted a loan or a grant, and how these 
     benchmarks are tied to transparency, investment in human 
     development initiatives, and good governance indicators.
     Non-Governmental Organizations (NGOs)
       Non-governmental organizations should:
       Establish additional and enhance current monitoring 
     programs that track compliance with transparency and revenue 
     destination agreements between African governments, IFIs, the 
     United States, and oil companies.
       Establish a scorecard for African oil producing nations on 
     the management of oil revenues, raising media awareness of 
     ``worst offenders'' and ``best practitioners,'' and including 
     civil society participation in determining revenue 
     destinations. This will initiate a healthy competition to 
     attract direct foreign investment.
       Submit recommendations to the Commission for Sustainable 
     Development in West Africa on sustaining improvements in 
     human development in hydrocarbon states.
       Develop strategies to mobilize citizens for effectively 
     engaging governments over policies to develop oil resources.

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