Covering the Extractive Industries

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Bernard Durfee in Flickr (CC License)

Bernard Durfee in Flickr (CC License)

The extractive industries –the development and exploitation of oil, gas, and mining resources — is a critical topic for investigative journalists, particularly in developing countries. Revenues from natural resource extraction contribute substantially to GDP and in many cases make up the bulk of government revenue. The companies in the extractive sector are large and influential. How the revenues they generate are spent affects economic growth, the environment, domestic security, and social well-being. In many countries, however, revenues are wasted or lost due to corruption and financial mismanagement.

This guide to covering extractive industries is reprinted from the academic paper “Covering the Extractives Industry: Big Data, New Tools, and Journalism,” by Anya Schiffrin and Erika Rodrigues. Their paper was presented during the professors track at the Global Investigative Journalism Conference in October 2013 in Rio De Janeiro.

There is a great deal of scope for journalists to do investigative reporting on the extractive sector. The last few years have seen a general trend towards transparency in the sector, so there is now far more data available than ever before. Indeed, the challenge will be for journalists to find the data and figure out how to make sense of it so it can be used for reporting in depth stories. Below, you can find a road map to improve your coverage, including new tools that enable journalists and bloggers to obtain and verify information, and where to get ideas for future stories.


Tools/Places to Get Information 

In our research we found a wide range of websites that can be of use to journalists covering oil, gas and mining.

Sites Aimed at Journalism

  • The Guardian Data Store / Data Blog: Articles and data resources (including applications, a searchable database of datasets, and an open platform for enabling aspiring data journalists). In addition, The Guardian offers information on global development, providing data on various developing countries’ GDPs, aid to various countries (both incoming and outgoing), societal information, environmental information, and lastly, information on their business. However, the Guardian Data Store / Data Blog also contains information otherwise not necessary to foreign journalists, and utilizes the same search system as the basic Guardian website, making it not easily navigable. If anything, the Guardian visualizes data very well, making it easily understandable.
  • DocumentCloud: “A tool for journalists, a document catalog, [or] both” that allows users to upload source documents and annotate them. In addition, DocumentCloud offers analytic tools, allowing reporters to cross check words and frequency in a graph, or allowing them to view common names, businesses, or governmental organizations between papers uploaded to the site. The website offers this capability without requiring the viewer to read all documents, allowing them to understand the major players within a certain topic, thus focusing their research.

Sites with an Extractives Focus

  • The Global Investigative Journalism Network: The GJIN contains tipsheets and other guidelines for reporters, including information on global corruption, investigative reporting, and other resources for various topics, including banking, digital security, and journalism safety organizations. In addition, it offers information on data mining and data analysis.
  • EI Source Book: An exhaustive primer on the oil, gas, and mining industries; affiliated with Goxi, the World Bank, and the University of Dundee. Additionally partnered with the African Center for Economic Transformation, Adam Smith International, AIMPER, the Centre for Energy, Petroleum, and Mineral Law and Policy, the Research Center on Investment and International Trade Law, The Centre for Sustainability in Mining and Industry, the Extractive Industries Transparency Initiative, ELLA, Global Witness, International Council on Mining and Metals, The Intergovernmental Forum on Mining, Minerals, Metals, and Sustainable Development, IM4DC, IPIECA, OpenOil, Pact, Revenue Watch Institute (now known as, The Natural Resource Governance Insitute) ,  and other universities.
  • AIMPER: The Africa Institute for Minerals, Petroleum, and Energy Resources is associated with the Uganda Pentecostal University, aimed at educating graduates who will then go on to work in the African mineral, petroleum, and energy sectors. AIMPER
  • The Centre for Energy, Petroleum, and Mineral Law and Policy is associated with the University of Dundee. CEPMLP
  • the Research Center on Investment and International Trade Law. ELLA
  • International Council on Mining and Metals. The ICMM cites its goal as to “bring together 22 mining and metals companies as well as 33 national and regional mining associations and global commodity associations to maximize the contribution of mining, minerals and metals to sustainable development.”
  • The Intergovernmental Forum on Mining, Minerals, Metals, and Sustainable Development. “The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) is a unique global venue for sustained discussions on practical issues related to the sustainable management and development of the mining sector. It serves as a forum for dialogue between member- country governments, mining companies and industry associations.”
  • The International Mining For Development Center: IM4DC. It was developed in partnership with the Australian Government to “to assist in lifting the quality of life in developing nations through a more sustainable use of mineral and energy resources.”
  • IPIECA
  • Formerly known as the Revenue Watch Institute, the Natural Resource Governance Institute “helps people to realize the benefits of their countries’ endowments of oil, gas and minerals,” while at the same time working with governments, media, and the private sector to ensure accountability in this development.
  • Open Corporates: “The open database of the corporate world,” containing information on over 60 million companies worldwide. Check out their Maps of some the connections between companies. Utilizing a very simple search feature, individuals can search companies by their name, or by individuals registered to those companies.
  • OpenOil: An organization that fosters “progressive policy making” in the areas of oil and gas. Includes blogs, research, wiki-guides, etc. Now offers a free downloadable guide on how tread oil contracts effectively.
  • For academic work on the effect that oil wealth has on development please see the website of UCLA political science professor Michael Ross.
  • A book Professor Schiffrin helped edit in 2005 is aimed at helping journalists write about oil and has been translated into several languages. It’s is available at no charge on the National Resource Governance Institute website.

Covering Oil

  • Another useful publication is the IMF guide to Resource Revenue Transparency .
  • Global Witness has published a number of reports on the extractives, particularly in Africa. A few that are worth looking at include a report on the unfair Mineral Development Agreement between Liberia and Mittal which helped push the two sides to renegotiate. Another of GW’s reports worth looking at is this one on offshore companies .
  • Several groups have come up with recommendations on how countries can better manage their extractive sector. This report (Broken link, use report) is from the Africa Progress panel, chaired by Kofi Annan and the Natural Resource Charter is a set of principles that was the original brainchild of Oxford economist Paul Collier .

1)   Regional and National Sites

  • Sahara Reporters: “An online community of international reporters and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective.”
  • Guinée News: “Interested primarily in news and information concerning the Republic of Guinea. Also covers African and international issues”.
  • Soul Beat Africa: “A knowledge management initiative focusing on communication and media for social change in Africa.”
  • @Verdade: “A high quality, full color newspaper distributed weekly to the Mozambican population, with an estimated print readership of 400,000.”
  • Oil in Uganda: a website owned by Action Aid International Uganda, operating with funding support from Ford Foundation, with news and detailed information about the social, economic, governance and environmental dimensions of the oil and gas sector in Uganda. A quarterly print edition excerpts major content of the site, with some additional features.
  • BudgIT: a website with “simple infographics that helped citizens to understand the new fuel subsidy payment and oil revenue share in Nigeria. The team has since produced a whole series of images that break down the country’s budget by state and sector and utilize the power of social media to enable citizens to take part in more informed debates around public expenditure.”

2)   Sites that Provide Data about Oil, Gas, Mining

  • Energy Infrastructure and Flows
  • Joint Organizations Data Initiative (United Nations): A database measuring 13 product categories (crude oil, NGL, LPG, etc.) and 14 flows (production, direct use, stock change, refinery output, etc.) across over 90 participating countries, with data from 2002 to November 2013, downloadable in various formats. .
  • BP Statistical Review of World Energy: Contains annual price, consumption, and production totals on oil, natural gas, coal, and other resources; updated yearly with statistics going back decades in some cases. Additionally provides information regarding oil reserves (going back since 1992, spanning 20 years), and production and consumption information across countries as well.
  • Data visualization tool here
  • U.S. Energy Information Administration: A variety of tools for viewing historical, international energy data including production, consumption, imports, exports, capacity, stocks, emissions, etc. for all fuels and countries
  • International Energy Agency Statistics: A comprehensive set of maps, graphs, and charts displaying energy production, consumption, imports, flows, etc. in a variety of interactive graphical formats on an individual country level. Also has downloadable publications regarding Carbon Dioxide emissions, natural gas information, and energy prices information.
  • Revenue Management and Transparency

EITI Country Reports: Contains data on revenues reported as paid by the companies, and as received by the governments, for the 37 countries that are part of the EITI. EITI Country Reports features a research tool allowing viewers to compare EITI Reports across countries and years, giving them information regarding differences in revenues and receipts.

  • Promoting Revenue Transparency: 2011 Report on Oil and Gas Companies from the Natural Resource Governance Institute formerly known as (Revenue Watch A report on transparency and anti-corruption efforts of 44 oil and natural gas companies from 30 countries (including country-level disclosures for all nations within their upstream production line, totaling 73 countries in all)
  • Resource Governance Index (Revenue Watch Would this still be Revenue Watch, or the new name): Data tool that facilitates country-by-country comparisons in transparency and accountability in the energy sectors of 58 nations, with sections on disclosure procedures for individual countries, reporting procedures, and safeguards and quality controls.
  • Similar comparative tool found here for EITI nations
  • Use this link or this Oil and Gas Tax Guide for Africa 2013 download: Self-described as a “quick guide to oil and gas tax regimes” in Africa, this report includes tax and regulatory information and other biographical information on 14 African countries’ oil and gas industries. Although no newer editions exist, they plan to expand beyond the 14 countries. Additionally, (or usefully), they provide contacts at each PricewaterhouseCoopers location in each country, giving researchers possibly more access to the information.
  • Beyond the Rhetoric – Measuring Revenue Transparency: Company Performance in the Oil and Gas Industries OR link to Resource Governance Website instead, Report (as this is the only PDF available) An overview of transparency in the oil and gas sector, including a scoring system for revenue transparency and anti-corruption efforts for all major global oil/gas companies (and several smaller and/or state-owned ones) for a total of 52 country-specific operations
  • Contract Transparency (Publish What You Pay): An interactive map showing countries that have published their contracts with extractive companies, accompanied by links to the contracts
  • Contribution of natural resources to gross domestic product (World Bank): Table listing the percentage of GDP comprised of rents for oil, natural gas, coal, mineral, and forests. The World Development Indicators (World Bank), provide up-to-date information on global development data for both national, regional, and global estimates, were last updated in 2014, and are available for download.
  • Financial & Private Sector Development: Privatization (World Bank): Tables listing historical privatization transactions of at least $1MM from 1988-2008, including 215 in the energy sector (with fields for company name, country, year, deal type, and proceeds). Also available is a policy trends discussion on the data, providing summaries on the data and past privatization trends.
  • Oil and Mining Contracts (GEI Program / Revenue Watch Should the name be changed?): A database of contracts, agreements, and key terms containing 120 documents from 7 countries. A database of contracts, agreements, and key terms containing 200 documents from 18 countries
  • Payments to Governments (Shell Global): Contains data on income taxes, sales taxes, and royalties paid to host governments by Shell Global in 2011, 2012, and 2013. The  Revenue Transparency document includes payments made to 14 governments, divided by the following categories: Income Taxes, Royalties, and Sales Taxes.
  • Chad / Cameroon Development Project: Year-End Report 2012 (Esso Exploration and Production Chad Inc.): Reports on compensation paid to local actors (chapter 7) as well as revenues paid to the host country and what the money was spent on within the country (chapter 13)
  • Mapping the Extractive Industries – Ghana, Extractives in Africa: An ArcGIS interactive map and accompanying table, piloted for Ghana but with plans to expand to the rest of Africa, displaying various extractives projects throughout the country, as well as their reported payments to Ghana and the government’s reported receipts
  • GlobeScan: assesses industries based on perceptions, reputation, influence mapping, and other accountability practices.. Also provides monthly updates on various industries, through GlobeScan Espresso.

3)   Sites with Information on Arbitration Processes and Outcomes

  • Luke Eric Peterson is a journalist who is passionate about international arbitration and has been writing about the subject for years. He is also interested in bilateral investment treaties and human rights. Here is his blog.  (broken link, use blog) Additionally, here is a website organized by Luke Eric Peterson, entitled Investment Arbitration Reporter, which focuses on international arbitrations between governments and foreign investors. Perhaps this should be a separate website, found elsewhere in the tools section.
  • This website run by Professor Andrew Newcombe, which houses all publicly available notices of arbitration, pleadings, and awards, sortable by company claimant and respondent state.
  • This website by the World Bank’s International Centre for Settlement of Investment Disputes, which identifies the relevant sector/industry at issue in the investor-State dispute. It additionally describes specific cases on investor-state disputes, providing proceedings information, decisions and awards given, and lastly, procedural details.
  • UNCITRAL – which recently adopted rules that will mandate transparency in investor-State arbitrations. The new rules are available here. They also did a write-up of these new transparency rules, explaining what they mean and when they will apply, available here.

4)   Sites To Connect People

  • Ulula: “a mobile phone platform that uses SMS, interactive voice response and other features to create a feedback loop between citizens, government and businesses for social good.” The platform generates real-time data that enables dialogue between businesses and citizens and new insights for public policy and corporate decision making to minimize risks and maximize shared value.
  • Factr: Users can  “curate their own feeds of data from external sources and syndicate them publicly or privately to peer networks…Factr Geo will enable users to define streams based on 2 criteria: location – either points of interest (e.g. cities) or user defined areas on a map (e.g. polygons); and data sources (e.g. Flickr, Instagram).” To be launched in August 2014
  • Goxi: A collaborative network inspired by the World Bank Institute and the African Development Bank that is designed specifically for extractives-related governance projects. Includes discussion of research, job searching, and task sharing for members in academia, business, government, nonprofits, and the media
  • Investigative Dashboard: “Detailed methodologies, resources, and links for journalists to track money, shareholders, and company ownership across international borders,” with plans to include “more advanced collaborative workspaces, data-archives, and discounted…access to expensive or proprietary research services.”
  • Ureport: similar to LabourVoices.
  • Ushahidi: the largest and most useful crowdsourcing tool.  Founded in Kenya and used, for example, during the Haiti hurricane to map incidents and help rescuers find victims.
  • Mashable: this well-known site that brings all sorts of articles together also has some information on oil, mining and gas.

5)   Sites that Help Journalists Present What They Find

  • Resources and Inspiration
    • FlowingData: A blog dedicated to the visualization and digestion of data in aesthetically pleasing and easily comprehensible formats
    • Visualizing: “A community of creative people making sense of complex issues through data and design”
    • Information is Beautiful: Similar to Flowing Data, this blog includes a variety of data visualizations with accompanying commentary
    • Mapping/Visualization Tools
      • Visual.ly: A site dedicated to data visualization tools across a broad array of purposes, from infographics to presentations and even videos
      • Google Charts: Display and embed Google’s charts and infographics (in various formats) on external web sites
      • Google Maps: Free, embeddable maps that can be customized and saved
      • Gephi: “An interactive visualization and exploration platform for all kinds of networks and complex systems.”
      • OpenStreetMap: A free, open-source street map of the entire world that can be exported in part or as a whole
      • OpenLayers: Easily embeddable maps for any web page (also open-source and free)
      • Datawrapper: “An open source tool helping anyone to create simple, correct and embeddable charts in minutes.”
      • Spatial Dimension: a company that helps countries cadaster extractive projects on maps and have them online.
Oil

Pay No Mind in Flickr (CC License)

Pay No Mind in Flickr (CC License)

Ideas for Future Stories

The number of stories that can be written about the extractive sector is infinite. Based on our reading and interviews with experts, activists and journalists here are a few:

1)   The Dodd-Frank Act

The effect of Dodd-Frank Wall Street Reform and Consumer Protection Act on the transparency of extractive companies. Section 1504 and the rules associated with it would require oil, gas and mining companies to make detailed reports of the payments they make to governments around the world.

  • According to the Revenue Watch Institute, “Under the SEC’s final rules, companies must disclose taxes, royalties, fees, production entitlements, bonuses, dividends and payments for infrastructure improvements. Fees to be reported include rental fees, entry fees and concession fees; bonus payments are specified to include signature, discovery and production bonuses.”  In July 2013, the rule that would implement 1504 was vacated by a Washington DC District Court but this was appealed so at this writing, we are still waiting for the SEC to issue a new version of the rule. This is now expected to happen in March 2015.  For more information see this May 28, 2014 article on Reuters. A number of groups have called on the SEC to come back with a stronger set of rules. Oil companies have said they prefer  voluntary agreements
  • What effect Dodd Frank will and will not have around the world will be an important subject for reporters. For example by looking to see what payments companies do not report it may become clearer what companies are paying in taxes or not paying and to compare the corporate tax regimes of different countries. These subjects will lend themselves to data visualization.
  • It is worth noting that the oil companies that have opposed the bill do not object to reporting overall payments.  They simply resist reporting payments with the kind of detailed breakdown that would make such information useful, especially for purposes of investigative reporting.
  • Section 1502 of Dodd Frank requires companies to was upheld by the US district court in July 2013 but then only partially upheld in April 2014 by the court of appeals and in In April 2014, two SEC Commissioners spoke out against the rule. At this time, it is not clear what will happen. For more information please see Reuters coverage as they are following events closely in Washington.
  • 1502 is the provision that relates to conflict diamonds. To quote a PWC report
  • “On May 31, 2014, public companies will have to comply for the first time with the SEC’s Conflict Minerals Rule (“the rule”) filing requirement. The rule is one of several SEC rules mandated by the Dodd-Frank Act that are intended to provide transparency into corporate practices. Specifically for the conflict minerals rule, the ultimate intent is to reduce funding for armed groups involved in human rights violations in the Democratic Republic of the Congo and surrounding countries (collectively, “covered countries”). The rule compels corporate disclosures around whether the conflict minerals used in a company’s products originated in the covered countries, and whether the conflict minerals are “conflict-free” or not.
  • Law professor Peter Rosenblum notes that Dodd Frank only requires transparency on financial dealings but not environmental damage. Again, another subject for investigation.

2)   Corporate Spending

There is a tremendous need for follow up stories about the questions of what the extractive sector companies are actually spending in the countries where they work. Extractive sector companies pledge to spend a certain amount on, say, community projects but there is little analysis of whether this actually happens.

Related to this is the Lough Erne declaration released at the G-8 meeting in June 2013, which read in part “Governments should publish information on laws, budgets, spending, national statistics, elections and government contracts in a way that is easy to use and re-use, so that citizens can hold them to account.” 

  • Open data charter –This is a g-8 policy paper which endorses many key principles of transparency and of the open data movement.

3)   Arbitration

A second set of possible set of story ideas has to do with the international and national arrangements on arbitration.

  • Tension over whether bilateral investment treaties are undermining national sovereignty. South Africa under pressure from the EU.
  • Another source is the Third World Network. This paper includes a discussion on how Canada’s bilateral investment treaties (BIT) maintain an “existing imbalance of bilateral and global economic and political relations between the north and the south, particularly Africa.” This paper here, from Emory Law Journal, is less critical of BITs and suggests about some of the sub-Saharan treaties should be formulated.
  • The unfairness of international arbitration and the way companies use the threat of arbitration to do what they want. Local groups in, say, land disputes have nowhere to appeal if their home court rules against them. Large corporates have the option of   international arbitration—a process that has always been shrouded in secrecy—is expensive and drags on for years.
  • Increasing transparency in the rules governing arbitration will continue to provide fodder for journalists seeking information.  Ongoing changes to arbitration rules will affect treaty based investor-state arbitration. This will, in turn, affect companies in the extractive sector as so many of them use arbitration proceedings that have, in the past, been completely closed to public scrutiny.
  • A source who researches arbitration outcomes and can speak with journalists about investor-state disputes and arbitration is Lise Johnson at the Vale Center at Columbia University’s Law School.

4)   Other Story Ideas 

  • Mexico and the opening up of Pemex to foreign investment.  Mexico is one country that has not allowed foreign companies in the hydrocarbon sector.  But the inability of the national oil company to develop the countries oil and gas fields combined with dwindling output from existing fields has put pressure on the country to open up the sector.  At the same time, abuses elsewhere are putting pressure on the government to make sure it sets up a legal framework that will ensure that such problems do not occur in Mexico. Ideally, the framework should ensure that Mexico get the full value of the resources and that the resource rents are used for public purposes.
  • How the campaign being led by Chris Taggart from Open Corporates will affect extractive sector companies in the regions where you report. As well as giving each company an identifier, Taggart is mapping networks between the companies.
  • Countries such as Azerbaijan are marking the anniversary of their joining or complying with EITI standards. This provides a great peg for stories that go beyond the rhetoric to look at the facts of what has been accomplished and what has truly changed.
  • Forward looking pieces – Countries such as Azerbaijan are drawing down their reserves and saddling future generations with enormous costly building projects. Once the resources have been used up and the money spent what will the economies of these countries looks like? What are the prospects for future generations?
  • Afghanistan and South Sudan and how the extractive sector will be developed there. 

5)   Perennial Story Ideas

As well as the above story ideas with more timely news pegs there are the perennial stories that are often neglected because the sites of extraction are remote and often closed to visitors. These include:

  • Economic consequences in remote, underdeveloped areas that lead to even more severe poverty – inflation; capital-based big businesses coming to compete with small local businesses; companies bringing in foreign services and goods to the detriment of local and national economy; high influxes of population.
  • Resettlement of populations living near sites of extraction to poor areas with no access to infrastructure, water, schools, health centers, and jobs.
  • Effects on social fabric – such as increased tensions, crime, prostitution because of high influx of foreigners, drugs, etc.