RWI report measures resource-rich countries’ accountability

The lives of more than 1 billion people worldwide could be transformed if their governments managed their countries’ oil, gas, and mineral resources in a more open and accountable manner, a new Revenue Watch Institute analysis concluded.

RWI’s 2013 Resource Governance Index measured oil, gas, and mining accountability and transparency in 85 countries worldwide that produce 85% of the world’s oil, 90% of its diamonds, and 80% of its copper, generating trillions of dollars in revenue annually.

It found that 47 of the 58 countries have not embraced openness and accountability. Eleven, including emerging Latin American economies, received satisfactory overall scores.

“We hope to advance reforms in this sector with real data and analysis which enables more empirical research by scholars and scientists to be translated into evidence-based policymaking,” RWI Pres. Daniel Kauffmann said. “This is a diagnostic tool at the country level. There’s an enormous amount of data for each country.”

The Middle East and North Africa present the biggest challenges, he told a May 15 Brookings Institution seminar where the report was released. “It’s enormously important in the Middle East, where 80% of their export revenue goes to their national budgets,” Kauffmann said. “Latin America is doing better and getting closer—but not there yet—to [Organization for Economic Cooperation and Development] standards.”

Some countries did well in some areas and not as well in others, he continued. “In 20 countries, like Venezuela, the substantial resource revenue bypasses the treasury and overall budget,” Kauffmann said. “Others such as Guinea are making progress. A number of former Soviet republics have very poor records in the environment and government accountability.”

More resources available

The report is significant because it shows that several countries that have signed the Extractive Industries Transparency Initiative have not implemented reforms, noted Carlos Pasqual, special envoy and coordinator for international energy affairs at the US Department of State. It’s also timely since there’s much more resource availability worldwide, he added.

“We’re seeing the potential for new oil supplies in the Gulf of Guinea we haven’t seen before,” Pasqual said. “Traditional suppliers like Norway are bringing more oil and gas onto the market. Having a measure like this when countries like Nigeria, Tanzania, and even Myanmar are producing more of their resources is important.”

Many emerging oil and gas producers don’t fully understand the extent or value of their resources, particularly when it comes to gas which primarily used to be transported by pipeline but increasingly is being liquefied and shipped in tankers, he said.

“Finally, this all has to be translated into laws and institutions,” Pasqual said. “We have tried to work with countries that have emerging natural resource wealth and help them develop the capabilities to manage that wealth and develop the necessary institutions. What this report has put on the table will keep encouraging us to work through institutions like EITI, to keep asking questions, and to try to make a difference.”

George Ingram, a senior fellow in Brookings’s Global Economy and Development program, said he expects UK Prime Minister David Cameron to raise the resource transparency and accountability issue the G8 countries’ meeting in another week. “People in the development community recognize the financial community has an important role to play,” he said. “Expanding that will help encourage countries to initiate reforms.”

The next phase will be to demand accountability and transparency in how countries actually spend their resource revenue, the three experts suggested. “At a country-level, it involves following the money and determining, for instance, how much of the revenue is going to militias, for example,” Kauffmann said. “There are many government reformers who are engaging with us to advance analysis and implement policies.”

Contact Nick Snow at nicks@pennwell.com.

Related Articles

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

Keyera to take majority interest in Alberta gas plant

12/12/2014 Keyera Corp., Calgary, will pay $65 million (Can.) to buy a 70.79% ownership interest in the Ricinus deep-cut gas plant in west-central Alberta.

PBF Energy, PBF Logistics make management changes

12/12/2014 Matthew Lucey, currently executive vice-president of PBF Energy Inc., will succeed Michael Gayda as the company’s president. Todd O’Malley, current...

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

MARKET WATCH: NYMEX crude oil price extends slump

12/12/2014 Crude oil prices extended their slump on the New York market with a Dec. 11 settlement of less than $60/bbl for January, and prices continued downw...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

BOEM raises offshore oil spill liability limit to $134 million

12/11/2014 The US Bureau of Ocean Energy Management increased the liability limit for oil-spill related damages from offshore operations to $134 million from ...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected