Think WIDER webinar — Corruption and theft in the global oil and gas sector

Estimates of global foreign bribery suggest that 20% of transnational bribes are linked to the extractive sector. Corruption is prevalent in the oil, gas, and mining industries. Another often overlooked issue in the extractives sector is organized theft. At USD 133 billion annually, oil is the largest stolen natural resource globally, while fuel is the most smuggled natural resource.

The awarding of exploration licenses for oil blocks is a very delicate moment for countries with oil and gas resources. Exploration licenses awarded by public authorities give the license holder the exclusive right to explore for oil and gas within the specified block.

A recent WIDER Working Paper covering 119 countries over the period 1990–2014 shows that within six months of awarding a license the number of shell companies with accounts in tax havens increased by 11% on average. This suggests a link between the issuance of oil exploration licenses and the founding of shell companies in tax havens, indicating a heightened risk of corruption in the award of the license, as well as a potentially large loss in revenue to the state.

Two other UNU-WIDER studies examine global oil theft and how it can be reduced. Oil theft equates to 5–7% of the global market for crude oil and petroleum fuels. It is so engrained in the energy supply chain that thefts are priced in by traders and tolerated by many shipping companies as petty theft. The proceeds of oil theft often finance other organized crime, triggering violence within communities, and disrupting international trade, resulting in an even greater loss of revenue for governments from the oil sector.

This one-hour event shares research findings and policy recommendations on these topics that have major implications for extractive abundant countries in the developing world, their revenues, and their prospects for achieving the Sustainable Development Goals (SDGs).

Findings from the research are presented by Etienne Romsom (EnergyCC) and Giovanna Marcolongo (Bocconi University). Steve Kayizzi-Mugerwa, Senior Consultant and Researcher at Zziyika and Associates LLC joins as a discussant. The event is chaired by UNU-WIDER Non-Resident Senior Research Fellow Tony Addison, Professor of Economics, Development Economics Research Group, University of Copenhagen.

[georgedoolittle]

Everything revolves around the creation of more debt to solve debt crises thus making the entire World wholly reliant upon oil and I would imagine the US Dollar for *"payment of all the things"* irony being the USA is now the World's largest producer of oil going on forever now and also a major oil exporter as well. All of this could only happen by having enormous corruption of the US Federal Government as relates to determining the need for ICE Platform oil consumption of refined product as opposed to Teslas, Rivian etc.