– Blogs

Global oil theft: impact and policy responses

Feb 21, 2022

Oil & Gas Industry

By Etienne Romsom

This is the first of two papers delivered to UNU WIDER to address the global issue of global oil theft. This paper evaluates the impact of oil theft and describes why the international community should take a stronger stance against oil theft.

This paper, the first of two on global oil theft and fraud, discusses the prevalence, methods, and consequences of global oil theft, valued at US$133 billion per year and equivalent to 5–7 per cent of the global market for crude oil and petroleum fuels.

However, the impact of oil theft is significantly larger than the value of theft itself. Government tax yields have been assessed for 30 developing countries associated with oil theft and found to be significantly lower than in the International Monetary Fund’s benchmark study.

Oil theft, smuggling, and illicit trade in petroleum products are often seen as lesser forms of crime than human trafficking, the drugs trade, smuggling of weapons, kidnapping, and terrorism. However, oil theft as an act of opportunity tends to evolve into organized crime and, if left unchecked, oil theft may interlink with other organized crime activities and groups.

Actions against oil theft should target the transnational crime syndicates that continue to find ways to replicate their thefts by adapting their theft strategies and business models. However, there is a lack of basic data, including how much oil is stolen, how the stolen oil is transported, and how illicit oil transactions are conducted. The mixing of legal commercial operations with illegal oil theft activities and fraud obscures many oil theft crimes.

The full paper can be accessed and downloaded at: 

https://www.wider.unu.edu/publication/global-oil-theft-impact-and-policy-responses#

Share this article

Read Other Blogs

Countering global oil theft: responses and solutions

Mar 30, 2022 • Oil & Gas Industry

This is the second of two papers delivered to UNU WIDER to address the global issue of global oil theft. This paper evaluates recent trends and commonalities of oil theft, describes potential actions and solutions to prevent oil theft, and mitigations against its consequences.

Read More
A Practical Proposal on Methane for 2022: From Climate Pledges to Action

Feb 15, 2022 • Policy

Generating swift action on climate change in 2022 faces great challenges, yet one initiative—methane reduction in the energy sector—provides an unusual and attractive opportunity. It combines significant contributions to the global public good of emissions reduction with significant benefits to the local public good in many developing countries. Moreover, action to realize these benefits can be taken quickly. 

Read More
A Practical Proposal on Methane for 2022: From Climate Pledges to Action (Note)

Feb 15, 2022 • Policy

Cutting methane emissions by reducing wasteful flaring of natural gas stands out as an immediate political opportunity and a straightforward means to reduce atmospheric emissions. Tackling methane is especially significant since doing so meets other development priorities, such as generating government revenue (by taxing methane emissions), improving health (by reducing air pollution), and helping deliver greater energy access (by using rather than wasting the gas).

Read More