The Harm the Oil Sector Imposes on the World

Introduction

The oil sector has brought more substantial harm than benefits to the world. Since oil was first produced commercially in the mid-19th century in the USA, the global oil rush has left more damage to humanity than benefits. For decades, oil has been fundamental in fuelling our motor vehicles and other engines and producing goods in either industrial or home settings. The value of oil has led to wars between nations, while oil shortages have the potential to bring down economies. As oil exploration and extraction companies and governments record vast earnings through the sector, it becomes crucial to understand the harm the oil sector brings to the world.

The oil sector and its impact

Bloodshed and environmental degradation from oil production affect nearly any oil-producing country. From the Iran-Iraq war and the Chaco War to US wars in Iraq, oil remains a crucial driver for bloodshed worldwide. While discussing the provision of clean water, Vice President Harris acknowledged that nations have fought over oil for years (Borba, 2021). This statement echoes the evident evil brought by the need to control oil production, transportation, regulation, or consumption. During the First World War, oil control was decisive in battles between nations as oil was crucial in fuelling warships, trucks, and tanks. Upon the end of the war in 1944, leaders recognized the increasing significance of oil.

Leaders like Churchill and Roosevelt swiftly signed the Anglo-American Petroleum Agreement between the US and the UK to share the Middle Eastern Oil. This agreement set the stage for the 1990 Gulf War, which resulted when Iraq invaded Kuwait to capture and control its oil fields. Kuwait and Iraq had disputed the ownership of various oil fields and territories for an extended period. In August 1990, Iraq invaded Kuwait, setting over 700 Kuwait oil fields on fire (Forces Network, 2021). When diplomatic talks failed to yield peace, the US and other 38 nations formed a coalition against Iraq. The fatalities and environmental damage from this war reveal the extent of harm oil has had over decades.

Both the opposition and the US-led allied forces suffered heavy casualties during the Gulf War. The Forces Network (2021) reveals that due to direct enemy action, the allied forces lost around 250 personnel while Iraqi soldiers who died during the war are estimated to be 20,000 to 35,000. Additionally, the source reveals that civilian death from the war is estimated to be around 100,000 to 200,000 (The Forces Network, 2021). An Iraq provocative Scud missile attack against allied nations like Saudi Arabia and Israel in Saudi Arabia is reported to have led to the death of 28 US soldiers while injuring more than 100 soldiers as reported by The Forces Network (2021). The effects of the Gulf War indicate how oil harms the environment and causes injury and death to people as they struggle to control the oil supply.

The discovery of oil does not necessarily indicate better living conditions and stability. Oil is a crucial catalyst for conflict across different regions and communities. For instance, a study by Ukaogo and Ogechi (2020) that examines the economic transition and the associated effect of the discovery of oil in the Niger Delta is worrying. According to the study’s findings, the discovery of oil in the Niger Delta brought damning impacts on the local communities. The Niger Delta conflict, which arose in the 1990s, resulted from friction between the local minority ethnic groups in Niger Delta and the foreign oil corporations. As oil corporations collaborated with the ruling elite, new alliances and interests worsened the situation. The state has been accused of using its resources to coerce the communities and provide protection and access to the foreign firms in what appears to be an undeclared war against the oil-bearing communities. As these groups felt exploited, it led to the formation and militarization of regional militia groups.

As violence persists in the Niger delta, it is necessary to understand how oil further contributes to harm. Oil pollution within the Niger Delta has led to the depletion of fish and water resources for the coastal communities. These communities have traditionally relied on these resources for their livelihoods. Gas flaring, oil spills, and different activities from the oil companies have significantly degraded marine and land resources. As oil extraction continues, the local communities blame the foreign companies and the Nigerian government as they feel they are not adequately compensated. This situation has led to conflict between the communities and the government, the foreign oil corporations, and within the communities. As war ravages, the Niger Delta, oil corporations, and the elite class continue to profit at the cost of the environment and the local communities.

Oil has not only led to wars between nations and militia among communities but also led to the development and funding of terror groups. A classic example is the Islamic State of Iraq and Syria (ISIS) rise. Most of Iraq’s enormous oil fields are located in Shiite Southern regions in Iraq, while lower deposits are found within the borderlands of the Kurdish region. As Sunnis revolted against the Shiite central government over the sharing of oil revenues, a denial of achievement of full federalism weakened the government. This situation led to losing de facto control of the Nineveh and Anbar regions to the Sunni militia and al-Qaeda outfits.

The conflict further merged with the Syrian Civil War, which sought to oust the Bashar al-Assad regime leading to the emergence of the Islamic State of Iraq and Syria (ISIS). A review by Le Billon (2021) states that the capture of Jabhat al-Nusra marked the declaration of the formation of ISIS. This strategic location helped ISIS capture the Syrian oil fields in Deir Ez-Zor. The economy of the ISIS terror organization was funded from oil; at its epitome in 2015, the ISIS-controlled an estimated 1,00 000 km2 of territory in Syria and Iraq (Le Billon, 2021). The terror group organized these territories and controlled refineries, pipelines, oil and gas fields, and tanker routes. The true evil of oil is evident as prominent terror organizations like ISIS continue to harm governments, civilians, and the environment.

Accidents affecting Oil and gas pipelines or storage facilities represent one-way oil directly results in a civilian fatality, injury, or environmental damage. Some of the leading causes of these accidents include; vehicle accidents, natural force damage, vandalism, corrosion, material/weld failure, acts of terrorism, sabotage, loss of equipment, or poor operation. According to an analysis by Biezma et al, (2020), Nigeria’s 1998 oil and gas pipeline transportation accident was the most gruesome in history. The accident claimed 1078 fatalities after a leakage in the pipeline burst into flames as villagers scavenged for fuel; these accidents have resulted in over 4000 deaths (Biezma et al, 2022). Motor vehicle accidents during oil transportation are the leading causes of fatality resulting from the sector.

The evils brought by the oil sector do not only result in death and environmental degradation but also result in Dutch disease. The Dutch disease refers to a concept where rapid development of one industry, particularly oil and natural gas, results in a decline of the sectors. The Dutch disease hurts the agricultural and local manufacturing sectors as exports become more expensive while the domestic production cost rises (Pettinger, 2018). This inflation hurts the communities not sharing the oil compensation. Countries whose manufacturing and agricultural sectors have been damaged by the disease include Algeria, Nigeria, Venezuela, Ecuador, Trinidad, and Colombia. Though an economy can benefit from oil revenue streams, the negative impacts that it might have on the agriculture and manufacturing sector can often affect the poor in society.

Corruption poses a threat to the political and economic development of any nation. A corrupt society lacks integrity, accountability, leadership, trust, transparency, and equity. When a community lacks these moral values, the risk of chaos and anarchy is inevitable. Corruption leads to theft of revenues meant for social services and programs, capital flight, and human rights abuse. The oil sector has been associated with high cases of corruption. When corruption prevails, different organs of the government cannot function effectively. Major oil-producing nations experience high corruption cases that have affected governance and livelihoods. According to an article by Al Jazeera, oil in Iraq is the leading reason why corruption is deeply rooted in the nation (Saeed, 2019). The nation loses billions of revenues to corruption that only benefits the elite class at the expense of most ordinary Iraqis. Oil’s ruling elite is empowered to undermine the judiciary and evade accountability. The prevalence of immersing corruption in Iraq weakened the government, leading to the spring of mass protests in the south and center of Iraq.

The collapse of oil prices in recent years has exposed another threat that oil poses to humanity. As prices dropped, Middle Eastern nations adopted oil in a trade war to hurt other oil-supplying countries. The global recession led to a fall in oil demand; however, the Arab oil-producing nations maintained their production levels while allowing the prices to fall. This move was to damage rival USA oil frackers, North Sea Oil, and Russian oil companies who rely on high oil prices to remain profitable. In the recent past, the Russian attack on Ukraine led to skyrocketing oil prices. Russia is using its oil revenue streams to fund its invasion of Ukraine (CBS News, 2022). Though the US and the majority of European nations have sanctioned Russia, the country is still exporting the majority of its oil through other networks.

Conclusion

Nations like the US and other European countries are moving away from relying on oil. The transition to other fuels or energy sources to run vehicles, industries, and home use is evident as these nations seek to lessen the influence of hostile oil-producing nations. Oil has led to wars between nations, conflict in communities, development of militia and terror groups. Through oil, corruption has taken root in the society, which has led to poor governance, poor growth, abuse of human rights, and class difference. The ambition to transition to other fuel sources can be an essential step toward restoring peace, development, integrity, and accountability in society. Through the adoption of different sources of energy, we not only support better environmental protection but also take a broad initiative in eradicating the evils propagated by oil.

References

Biezma, M. V., Andrés, M. A., Agudo, D., & Briz, E. (2020). Most fatal oil & gas pipeline accidents through history: A lessons learned approach. Engineering Failure Analysis, 110, 104446. Web.

Borba, A. (2021). Vice president Kamala Harris warns of looming ‘wars fought over water’. CBS News. Web.

CBS News. (2022). Oil and energy expert Mark Finley on global effects of russia’s war in Ukraine – “Intelligence matters”. CBS News. Web.

Forces Network. (2021). Remembering the Gulf War: Key Facts and figures about the conflict. Forces Network. Web.

Le Billon, P. (2021). Oil and the islamic state: Revisiting “resource wars” arguments in light of ISIS operations and state-making attempts. Studies in Conflict & Terrorism, 1–23. Web.

Pettinger, T. (2018). Dutch disease. Economics Help. Web.

Saeed, Y. (2019). The KRG’s anti-corruption effort must start from its oil sector. Kurds | Al Jazeera. Web.

Ukaogo, V., & Ogechi, N. (2020). Two oils, one evil: An appraisal of contemporary dilemma of the indigenous population of Nigeria’s oil-delta communities, 1956-2019. Rupkatha Journal on Interdisciplinary Studies in Humanities, 12(5). Web.

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StudyCorgi. "The Harm the Oil Sector Imposes on the World." June 11, 2023. https://studycorgi.com/the-harm-the-oil-sector-imposes-on-the-world/.

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StudyCorgi. 2023. "The Harm the Oil Sector Imposes on the World." June 11, 2023. https://studycorgi.com/the-harm-the-oil-sector-imposes-on-the-world/.

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