Right now the American Petroleum Institute is waging a legal battle in Washington to block key sections of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act– passed by Congress and signed by President Obama– that requires oil companies to divulge what they pay governments.

Some of the same companies supporting the suit, like Chevron, are also say they support the Extractive Industry Transparency Initiative, which is meeting in Sydney this week to promote more disclosure of oil, gas, and mineral resource revenues.

Chevron’s page on the EITI web site says “Chevron believes that the disclosure of revenues received by governments and payments made by extractive industries to governments could lead to improved governance in resource-rich countries. The transparent and accurate accounting of these funds contributes to stable, long-term investment climates, economic growth and the well-being of communities… Our commitment to promoting revenue transparency in (sic) reflected in our participation in the multistakeholder Extractive Industries Transparency Initiative (EITI). Chevron, which continues to support the efforts of the Oslo-based EITI Secretariat, was elected to serve as a full member of the EITI board in 2009.”

OK so we are asking: Does Chevron support resource revenue transparency or not, and if so why has the company not publicly disavowed its support of the API law suit?

Right now we are calling on Chevron, ExxonMobil, BP, and Shell to drop their support of the API suit. You can help: Check out our new video, share it through your social networks, and take the action to call on Big Oil companies to be honest, support resource revenue transparency, and drop the law suit in Washington.

As we’ve posted here  and written in our magazine (p. 7), Ghana civil society organizations have gained substantial ground in collaborating with their government to promote transparency in oil revenue. They can now see what taxes, royalties, and other payments the government collects, and monitor where that money is spent.

Here at Oxfam we have worked hard to support the work in Ghana to build a culture of transparency and good governance. We’ve complemented this work in Ghana with our advocacy in the US for the payment transparency provisions in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (p. 8). These provisions are under threat in a law suit by the American Petroleum Institute (the lobbying arm of the US oil industry), which is seeking to block that entire section of Dodd-Frank, legislation passed by Congress and signed by President Obama.

What are the oil companies y trying to hide? This is the question posed by Boakye Dankwa Boadi in a video we released last week. The efforts of Mr. Boadi and others in Ghana to promote transparency and responsible governance are under threat. He sees legislation like Dodd-Frank as a measure that will help them check the money coming in to the government with payments reported by the companies themselves. He says this will help Ghana “cross the path of poverty” to becoming a more developed nation.

The court heard oral arguments last week, and we anticipate a decision in the coming months. Oxfam is calling for oil companies to publicly disassociate themselves from the API suit, and we’re asking you to sign a petition to support this.

James Bogoloh (right), an elected member of the District Assembly in Jomoro in western Ghana, talking with Solomon Kusi Ampofo, who works with Oxfam's partner organization Friends of the Nation. Photo by Anna Fawcus/Oxfam America.

Out in Jomoro district in western Ghana, James Bogoloh is looking at what passes for a road through dense forest between two villages near his home in Takinta. He pronounces it “deplorable.” “If it rains it is just not passable,” he says, as a motorcycle carrying two men, one holding a machete carefully off to the side, bounces and sputters past. Bogoloh shows us a concrete structure meant to bridge a low, wet area, and says that the contractor is about to start grading the road surface.

Bogoloh is an elected representative and a volunteer community monitor who is working with Oxfam’s partner Friends of the Nation to teach local people how to ensure that government money from oil and mining revenues is used to improve their lives. His efforts in Jomoro are complemented by a national coalition advocating for better laws to promote transparency of resource revenues, so citizens can see where their national wealth goes.

They are making significant progress, but the track to transparency has its ups and downs: Read the rest of this entry »

Congress passed it, President Obama signed it, but two years later we still do not have the rules that will implement the key “Cardin-Lugar” transparency requirements in the Dodd-Frank Wall Street Reform bill. The Securities and Exchange Commission (SEC) is responsible for producing the rules oil, gas, and mining companies will follow to disclose payments to governments in exchange for resources.

In March we called on our supporters to sign a petition calling for oil companies to actively support strong rules for transparency under the new law. More than 25,000 Oxfam supporters signed it, and our leaders in Washington are also urging the SEC to go “as far as possible,” in the words of Secretary of State Hillary Clinton, to implement financial transparency measures.

In early May Pulitzer Prize-winning journalist Steve Coll wrote about the Cardin-Lugar provision in Businessweek saying that the provision “may only be a start toward breaking the resource curse. But it’s a start all the same. Dodd-Frank is the law of the land; it’s past time for the SEC to transform the intent of Congress into change.” In this piece he refutes arguments that transparency provisions would make companies covered by the law less competitive than those that aren’t. Coll also makes the compelling case that “tougher rules on transparency would also benefit national security” and cites the landmark study commissioned by Senator Lugar in 2008. The Lugar report argues that corruption linked to oil and instability in places such as Nigeria create a “seedbed for terrorism,” and contribute to volatile energy prices. Read the rest of this entry »

Oxfam America is running banner ads on news web sites this week to encourage oil companies to support strong rules that will encourage more transparency in the industry.

A week ago we launched our latest effort to promote transparency in the oil, gas, and mining industries with an on-line petition calling on oil companies to stop blocking new rules by the Securities and Exchange Commission designed to implement the 2010 Dodd-Frank Wall Street Reform Bill. Since then more than 14,000 people have signed the petition, and hundreds of our supporters are sharing their views on Twitter and Facebook to help us promote the campaign.

The objective of the campaign is to encourage strong rules that will respect the law and honor the intent of Dodd-Frank: make payments by oil, gas, and mining companies to governments public so that people in poor communities producing precious natural resources can get a sense of where all the money goes.

It’s surprisingly difficult to track this money. In 2007 I visited a town in far western Mali and asked the mayor a question: how much of his town’s US$500,000 annual budget comes from the massive gold mine in his town? He could not say. Read the rest of this entry »