Friday, June 27, 2008

PROTECTING THE OIL SUPPLY

Nigeria is the fourth largest supplier of oil to the United States. That supply is always at risk as the Associated Press reported last week....


Royal Dutch Shell said it shut down production from an offshore oil field that produces about 200,000 barrels per day after the most powerful militant group in Nigeria launched an attack on an installation there Thursday. Oil prices rose in Asia on the news, which raised concerns about possible supply outages in Africa’s largest oil producer.

The group also said it captured an American worker on a supply vessel in the area of the rig.A leader of the Movement for the Emancipation of the Niger Delta told The Associated Press that militants attacked the Bonga oil field more than 85 miles from land. But the fighters weren’t able to enter a computer control room, which they had hoped to destroy.The militant leader spoke on condition of anonymity to avoid punishment by authorities. “The location for today’s attack was deliberately chosen to remove any notion that off-shore oil exploration is far from our reach,” the group said in a subsequent statement. “The oil companies and their collaborators do not have any place to hide in conducting their nefarious activities.”

Olav Ljosne, a spokesman for Royal Dutch Shell, confirmed an attack, but gave no details. He said production had been stopped from the field, which normally produces about 200,000 barrels of crude per day. That accounts for about 10 percent of Nigeria’s current daily output of about 2 million barrels per day production — already significantly off the amount produced before years of militant attacks on crucial oil infrastructure.

The turmoil in Nigeria’s south has helped send oil prices to historical heights, giving the militants more leverage in their drive to force the federal government to send more oil industry proceeds to their areas. Despite being the home of almost all of Nigeria’s petroleum reserves, the country’s south is as desperately poor as the rest of the country, which is Africa’s most populous with 140 million people. But criminality and militancy are closely linked, with many of the militant groups accused of stealing crude oil from wells and pipelines for sale in overseas market and helping politicians rig elections.



Confer Plastics has been called upon to inhibit the attacks on the oil infrastructure in Nigeria. In an earlier blog post we mentioned how a product we manufacture -- the Whisprwave -- is used to protect the Port of Los Angeles. Well, the picture below shows a portion of two shipments of Whisprwaves heading to Nigeria next week that will be put to use in keeping terrorists and militants away from oil delivery systems.