“The resource curse”

From “The Spill Seekers,” Outside Magazine, November 2010


While I was in Louisiana, there was an event at the Cajundome, in Lafayette, called the Rally for Economic Survival:  11,000 people packed the place to hear the governor, the lieutenant governor, and, of all people, the executive director of the Louisiana Seafood Marketing and Promotion Board rail against the Obama administration for stealing their jobs by imposing a six-month moratorium on deep-water drilling.

“Enough is enough!” raged the lieutenant governor, Scott Angelle, in his thick Cajun accent.  “Louisiana has a long and strong, distinguished history of fueling America, and we proudly do what few other states are willing to do. …America is not yet ready to get all of its fuel from the birds and the bees and the flowers and the trees!”

True, but of the six billion to seven billion barrels of oil consumed by the U.S. each year, only about 10 percent comes from federal Gulf of Mexico waters; we get the same amount from both the Persian Gulf and Canada.  Louisiana is no longer a significant source of crude, on- or off-shore.  What it does supply is cheap labor and a pliant local government.  In this, it’s eerily reminiscent of Third World places ruined by oil.  The BPs of the world would have you believe oil brings prosperity to the countries where it’s discovered, but it brings misery so dependably that economists have a name for the phenomenon:  the resource curse.

Ecuador, Venezuela, Iraq:  Bad things happen to countries “blessed” with oil.  The Niger Delta is the Mississippi River Delta’s separated-at-birth twin, offering the scariest cautionary tale of all.  This tropical river delta held some of the greatest wetlands on earth, with abundant shellfish, crabs, and shrimp, the foundation of the economy and culture, but it also harbored vast oil reserves.  In the past 50 years, Shell has grown preposterously wealthy off that oil, while Nigeria, with the tenth-largest oil reserves in the world, has become a post-apocalyptic wasteland.  Almost three times as much oil has spilled into the Niger River Delta as was spilled by the Deepwater Horizon:  546 million gallons and counting.  The creeks are black, and the crabs and shrimp are dead.  There are always leaking, corroded wellheads and pipelines.  Gangs of rebels and oil thieves roam the jungle.  Flaring rigs fill the air with mercury, arsenic, and carcinogens.  Disease is rampant.  The government is cardboard.

Southern Louisiana is no Nigeria, but it’s also no longer quite recognizable as the United States.  The trailer homes on pilings, the dearth of education, the chronic disease, the fat parish chiefs – I know the Third World when I see it.  Cajuns haven’t grown rich on crude; Houston has.  And when the oil runs out, there’s nothing left to fall back on.

I bet Angelle would simply argue that oil is worth billions more than seafood.  But that’s only because we aren’t sophisticated enough to put a value on all the multifarious “ecosystem services” the gulf provides:  benefits of the natural world, resources and processes we all too often take for granted.  If we were to add these things to the ledger – all that gulf seafood and the health savings from it, the hurricane protection and wildlife habitat in all those marshes, to name only a few – and apply the calculus of their self-perpetuating sustainability, the astronomical value would blow your mind.  It leaves petroleum in the pit.  … How much are all those acres of disappearing land worth?  What price the mental anxiety of a culture watching its homeland disintegrate?  How much added value do you assign oyster reefs because they’ve never, ever blown up and killed anyone?  It’s only ignorance – an inability to tally all the gains and losses – that makes oil look good.


Do yourself a favor: pick up a copy at your favorite newstand and read the whole piece.  And say thanks to Outside Magazine.