The Oil Drum

I think that there is certainly the potential to distribute a "fair" share of this oil wealth to the populace, buying their genuine support, while maintaining exceptional profits. Today's oil production from the waters of Cabinda grosses roughly $13 billion per year. This deepwater oil is not cheap to produce, but let's say (WAG) that oil companies and the Angolan government collectively reserved $1 billion per year for the people of Cabina. Evenly distributed, this is about $3,300 per man/woman/child--an extraordinary sum for Sub-Saharan Africa. This $1 Billion is roughly the sum that Angola claims they reserve for Cabinda, but no one even pretends that this actually reaches the common people, let alone ever leaves Luanda. Just my opinion, but given what I consider the very high potential for trouble, it seems that it would be a prudent long-term investment (for both western companies and the Angolan federal government) to reinvest around that $1 Billion mark.

There is also the issue of how that money is used. Just cutting each person a check for $3,300 isn't very effective because it drives inflation. The best-practice for an oil revenue fund is certainly Norway, but to follow their lead requires exactly the kind of transparent, stable government and civil society that is lacking in Angola.