by: Mike Miller
5/19/2017

There is little doubt threat the oil industry is rife with theft and corruption. From the top to the bottom both in the US and abroad there are payoffs everywhere with only us consumers taking the hit!

If you want to get a better understanding of the situation with oil in Africa you must read Richard North Anderson’s “Eclipse.” While a fictional tale it brings to light the depth of the corruption and madness oil creates in Africa. The following is a story that could have come straight from Anderson’s pen.

Royal Dutch Shell PLC said it shut down one of its major pipelines running through Nigeria's oil-rich southern delta for repair, blaming incessant thefts on the line for causing chronic leaks along it.

The shutdown cuts off about 60,000 barrels of oil a day from Shell's production in the country. This according to Business Week.

Though it was replaced less than two years ago, the pipeline has become a huge target for thieves who use drills and hacksaws to attached spigots along the line to steal raw crude.

Bunkering is a Major Problem – 150,000 Barrels A Day Stolen!

The thefts, locally called "bunkering," see crude later get sold into the black market or cooked into crude gasoline or diesel at makeshift refineries that dot the oil-rich Niger Delta. Shell officials previously have said as much as 150,000 barrels of crude a day is being stolen.

The bunkering likely continues because those in power in Nigeria personally benefit from the theft with politicians, retired admirals and generals and the country's elite all take part. Nigeria, which produces about 2.4 million of barrels of oil a day, is a top crude oil supplier to the U.S.

Who pays for this theft? We all do! While I would like to recommend an online theft class, this situation is far too serious. The depth of corruption is not solely about greed but delves into murder and the violation of human rights too!