In the world of offshore drilling for oil and gas, if a large field is not only discovered, but is brought to production billions of dollars could flow to the country where the oil and gas is discovered. It costs billions to bring in, but the rewards can be life changing to the people of the country. The example of Ghana which through the efforts of Exxon and Hess Petroleum is transforming Ghana to an capital rich country. There are other examples such as Trinidad, where Exxon is drilling and is projected to spend north of $20 billion. If a company spends that much money, it is expected at least $100 billion in returns. But all is not equal around the world.

In an article by Geoffrey York of the Globe and Mail, French oil giant TotalEnergies and its partner Shell Oil wanted to drill offshore of South African waters for oil and gas. Discoveries have been found in the country north of South Africa – Namibia.

Group worried about the environment sued and a South African court has blocked the environmental approval to drill offshore. The reason is the brief from TotalEnergies has failed to consider the project’s full impact on climate change.

The African Energy Chamber, the oil lobby group called the decision disruptive and threatens vital projects.

Western Cape High Court Justice Nobahle Mangcu-Lockwood said the environmental assessment must consider the cumulative impact of the entire project, including its potential production of oil and gas, rather than just the exploration phase. The 2 phases are interconnected and must be examined.

The court case took 2 years from launching to a judge’s decision.

Linking to dividend paying stocks, many of the companies operate in more than one country and while everyone wants the same thing in the countries how it gets done can be different. When leaders met in world forums this is one of the topics they often discuss. Often times one expects in case similar to above, the oil companies have access to multiple consultants who can offer possible projections of the future in whatever form the government wants or can live with. Sometimes the promise that development will be good, is challenged.

There are more questions than answers, till the next time – to raising questions.