Iraq Declares War on Petroleum Smuggling

[NVMojo]

(it's probably Cheney and Halliburton who are declaring war instead)

BAGHDAD, Iraq (AP) - Smugglers were loading gasoline on a ship at an illegal port in southern Iraq when police surprised them with a raid that ended with five smugglers and two policemen dead.

The October clash at Abu Flus was one of many attempts by security forces trying to stop smuggling of Iraqi petroleum products to neighboring countries, a practice that is costing the country billions of dollars every year.

Smugglers are selling millions of gallons of Iraqi gasoline, kerosene and diesel fuel outside the country every year. They then reap huge profits by selling the petroleum products back to the government for import.

"The most serious challenges facing the oil industry are smuggling and terrorism. They are both hitting the national economy, robbing Iraq and blocking development," said Oil Ministry spokesman Assem Jihad.

Despite the fact that Iraq has the world's third largest proven oil reserves, the government is forced to import refined oil products to cover domestic demand. As recently as September, the country's three main refineries were working at half their pre-invasion capacity, processing only about 350,000 barrels day compared with about 700,000 barrels a day before March 2003.

Aging refineries, corruption and attacks by insurgents on infrastructure, such as pipelines, have been blamed for the production shortage.

more...
http://www.lasvegassun.com/sunbin/stories/invest-corp/2006/nov/26/112602329.html

[rurallib]

1. Just curious - what army will they be fighting this "war" with?

Most likely ours, I suppose.

[acmejack]

2. Does this mean all the players feel their accounts are sufficiently engorged?

Perhaps if they would have used this money for utility services and security instead of stealing it, things would be a little better now.

[sam sarrha]

3. can anyone use the satalite records to check on tanker activity in Iraq

[NVMojo]

4. ...now there's a thought

[WCGreen]

5. Jihad declares Jihad.....

[Robbien]

6. Iraq Declares War on Petroleum Smuggling

Smugglers were loading gasoline on a ship at an illegal port in southern Iraq when police surprised them with a raid that ended with five smugglers and two policemen dead. The October clash at Abu Flus was one of many attempts by security forces trying to stop smuggling of Iraqi petroleum products to neighboring countries, a practice that is costing the country billions of dollars every year.

Smugglers are selling millions of gallons of Iraqi gasoline, kerosene and diesel fuel outside the country every year. They then reap huge profits by selling the petroleum products back to the government for import.

. . .

Despite the fact that Iraq has the world's third largest proven oil reserves, the government is forced to import refined oil products to cover domestic demand. As recently as September, the country's three main refineries were working at half their pre-invasion capacity, processing only about 350,000 barrels day compared with about 700,000 barrels a day before March 2003.

. . .

Jihad said Iraq buys oil for about 54 cents a quart and sells it within the country for between 7 and 13 cents, subsidizing the remainder. Many people try to subsidized their meager incomes through purchasing government-priced oil products and selling them to smugglers who take the products by boat or tanker trucks to Jordan, Syria, Kuwait, Iran and the United Arab Emirates.

. . .

Jihad said it was impossible to calculate how much petroleum is smuggled. Sabah al-Saidi, who heads the Iraqi parliament's anti-corruption committee, said the Oil Ministry inspector general has listed 13 Iraqi companies smuggling oil and says they are backed by Iraqi political groups.

Much more. . .
http://www.todaysthv.com/news/news.aspx?storyid=37781

[TechBear_Seattle]

7. Who wants to bet that the buyer of the smuggled oil...

Is the same group that sold the oil to the Iraqi government in the first place, ie the United States goverment or a private-sector subsidiary thereof?

Come on, Bush has to finance his war somehow.