The growing disaster in the Gulf of Mexico is a vivid and recent example of the dangers that come with the production of oil. With that fresh in mind, I am happy to help promote awareness and advocacy on oil and gas development; however it is difficult to be optimistic. The literature frequently refers to the curse that accompanies the production of oil, with few exceptions, all over the world. With that said, Uganda is ahead of the curve with the legislation and policy that have been written well in advance of the production phase of development.
The oil is located along the Lake Albert region in the western part of Uganda that borders the Democratic Republic of the Congo, an area that is prone to conflict. It is one of the most ecologically diverse regions of the African continent, estimated to contain roughly 40% of all mammal species and 50% of all bird species. Much of the region consists of national parks and wildlife preserves, not to mention the many people who reside there. An interactive map of Uganda from National Geographic is available by clicking on this link: http://travel.nationalgeographic.com/travel/countries/uganda-map/.
The first oil was discovered in the 1920’s. For political and logistical reasons, removing oil from this region was not considered economically viable until the late 1980’s when more extensive surveys revealed the full extent of the oil fields. Since this oil is located well inland where little or no infrastructure exists, it will be necessary to not only develop oil production capacity, but construct a way to move the oil for export and/or refining. It wasn’t until 2008, when the Ugandan government released its National Oil and Gas Policy, that it became clear that efforts were underway to create a viable oil and gas industry in Uganda.
Two weeks ago, I attended a conference sponsored by the US Embassy and CSCO, a coalition of civil society organizations dedicated to upholding the principles stated in the 2008 policy. This policy set out an admirable goal: to use the national oil and gas resources to contribute to the early achievement eradication of poverty and the creation of lasting value to society. As the keynote speaker of the event noted, the upside is that Uganda writes great laws and the 2008 policy contains the components to achieve its lofty goal. Another draft bill is in the works and should be released soon to the public.
The road from oil discovery to production in any nation, especially developing ones, is fraught with pitfalls; damage to the environment is but one aspect. Ethnic conflicts often emerge over land and distribution of newfound jobs and wealth. Introducing oil profits into the economy causes inflation, which must be managed properly. Countries like Uganda, which are dominated by agriculture, are particularly susceptible to this inflation as the money coming in from oil soon makes the farming sector unprofitable.
At this time, the government seems determined to forge ahead in development—the potential upsides for a country where 30% of the population below the official poverty line—are high. For now, the best course of action is for stakeholders to start advocating for their rights, and holding their representatives accountable to the best of their ability. This is where a project like LINKAGES can have a major impact by helping individuals organize and find their voice.
--
Posted by: Kate, Kampala, Uganda
