Insurgents go for Iraq's lifeline: oil

[NNN0LHI]

http://www.csmonitor.com/2004/0617/p01s04-woiq.html

BAGHDAD – Recent attacks that have virtually shut down Iraq's oil industry are just the latest in a prolonged campaign to choke the country's reconstruction.

Strikes against Iraq's oil sector have averaged more than one a week since last June. Bombings Tuesday and Wednesday on the southern pipeline halted oil exports from Basra and could cost Iraq about $65 million a day until repairs are made over the next several days.

The interim government is relying on oil revenues to bolster its authority and shepherd Iraq toward a self-sufficient future. But the ongoing attacks could undermine Iraq's stability as well as rattle the global oil market. With global production stretched to its limits, and prices near a record high, even the loss of Iraq's limited export volumes could have a major effect on prices, analysts say.

"Since the interim government was announced it seems the violence is getting worse,'' says Kate Dourian, the Middle East editor of Platts, an energy information service. "There's no spare capacity anywhere, so it's a question of where the replacement crude will come from."

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[CWebster]

1. everybody knows the story about the oil

and who appoints who to work for who when it comes to the oil.

[qwertyMike]

2. That'll get their attention

This is more serious than losing GI's </sarcasm>

[Geo55]

4. Unfortunately

This is all too true

[truth2power]

6. And that is not exactly sarcasm.

This ismore serious than losing GIs, from the standpoint of getting the attention of the loyal Murkins supporting this war.

Apparently the loss of over 800 American lives isn't on their radar. Maybe the consequences of lower oil supplies will wake them up, although I'm not optimistic about that either.

[jdj]

7. This may be a stupid question, but who pays for this?

Do these contractors, or Iraqi companies, do they have insurance to pick the bill? Or since we own all the oil in Iraq per exec. order 13303, do U.S. taxpayers pick up the bill when they get blown up once a day. Does it come out of the 87 billion $? Or does the coalition of the shilling have to help pay?

edit: could this be the reason gas has gone up so much in the last 2 months here? are we being nickeled and dimed into paying the bill for this battle of oil theft vs. oil sabotage?

[saigon68]

9. The US Taxpayer SHEEP pay the Bill

After all they are used to paying for $500.00 Hammers and $2,400.00 toilet seats.

LOL

[hadrons]

3. Insurgents go for Cheney/Dumbya's lifeline: oil

this is how the headline should read

[hatrack]

5. Wow, another astonishing insight from the CSM

Whoda thunkit?

[jmcgowanjm]

8. The War for US Standard of Living

If the troops now involved in the occupation of Iraq are
not rotated very soon, there is every reason to expect
outbreaks of mutiny among their ranks.

A pipeline to Syria was badly damaged by US bombing
during the invasion. (The only pipeline the Iraqis will let us
use
and the US won't, at any cost.)

"There's no spare capacity anywhere, so it's a question of
where the replacement crude will come from."

OPEC To Ask Other Producers To Raise Oil Output

Purnomo said he would send letters to Russia, Angola,
Mexico and Oman to request they pump more crude oil.

Russia can't, Mexico maybe, Angola possible,
Oman was where Shell RD downgraded reserves
this year

http://www.tehrantimes.com/Description.asp?Da=6/17/2004&Cat=9&Num=12

It almost happened last Wednesday. Several news
reports during the day said that OPEC had removed
all restrictions on production; OPEC member countries would
be free to sell all the oil they could produce. In essence, it
would have announced the death of
OPEC.

http://www.princeton.edu/hubbert/current-events.html

[jmcgowanjm]

10. The power to destroy is the power to control

The people who have stopped Iraqi oil
are now in control of Iraq, whether US acknowledges
this or not.

The world cannot stand by while nothing comes
out of Iraq. (In fact, according to back of the
napkin figuring, the US must be importing the
rough equivalent of 250K bbls gasoline min. everyday to
keep Iraqis supplied w/ .05/gal gasoline.

Someone will have to start negotiating w/
the new power in Iraq soon.

BTW-CBS inadvertently showed AlDuara's
Smokestacks 2 days ago. No smoke being
put out, which means, according to Patrick
Cockburn, Baghdad has no electricity.