# Iraq now importing oil?!

**URL:** <https://boards.straightdope.com/t/iraq-now-importing-oil/270611>\
**Category:** Great Debates\
**Created:** [October 22, 2004, 4:09pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611 "2004-10-22T16:09:27Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\
**Post date:** [October 22, 2004, 4:09pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/1 "2004-10-22T16:09:27Z")

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No cite, but I just heard on a Pacifica Network News broadcast that the Iraqi oil industry has been so weakened by sabotage and general disorder that the cash-strapped interim governent has been forced to export oil! How is this possible?! I thought Iraq’s oil was supposed to finance its reconstruction. How did things get this fucked up?

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**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\
**Post date:** [October 22, 2004, 4:23pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/2 "2004-10-22T16:23:38Z")

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Correction: The show I heard that on was Democracy Now! ([http://democracynow.org/](http://democracynow.org/)), not Pacifica Network News.

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**Author:** ![NurseCarmen](https://avatars.discourse-cdn.com/v4/letter/n/5daacb/32.png) [@NurseCarmen](https://boards.straightdope.com/u/NurseCarmen)\
**Post date:** [October 22, 2004, 4:24pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/3 "2004-10-22T16:24:53Z")

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> [@BrainGlutton](#):
>
> No cite, but I just heard on a Pacifica Network News broadcast that the Iraqi oil industry has been so weakened by sabotage and general disorder that the cash-strapped interim governent has been forced to **export** oil! How is this possible?! I thought Iraq’s oil was supposed to finance its reconstruction. How did things get this fucked up?

_bolding mine_  
I suspect that you intended to say _import_?  
I searched a bit, and can find no cite.

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**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\
**Post date:** [October 22, 2004, 4:29pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/4 "2004-10-22T16:29:19Z")

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> [@NurseCarmen](#):
>
> _bolding mine_  
> I suspect that you intended to say _import_?

Yeah, right, my bad. :smack:

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**Author:** ![Scarface\_Z](https://avatars.discourse-cdn.com/v4/letter/s/50afbb/32.png) [@Scarface\_Z](https://boards.straightdope.com/u/Scarface_Z)\
**Post date:** [October 22, 2004, 4:33pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/5 "2004-10-22T16:33:15Z")

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remember the halliburton contract? that contract was for halliburton to ship oil to iraq. or so i remember

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**Author:** ![Ryan\_Liam](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ryan_liam/32/3965_2.png) [@Ryan\_Liam](https://boards.straightdope.com/u/Ryan_Liam)\
**Post date:** [October 22, 2004, 4:54pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/6 "2004-10-22T16:54:24Z")

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I don’t see a problem with this, Iraqis infrastructure is delapilated and more prone to attacks from insurgents. Combine that with an artificially low petrol price to keep the population temporarily happy, then you got an acute Oil shortage, oh and bring in corruption too, and Iraqis stealing and extorting Oil from production facilities and there you go, an Oil shortage.

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**Author:** ![jshore](https://avatars.discourse-cdn.com/v4/letter/j/b5e925/32.png) [@jshore](https://boards.straightdope.com/u/jshore)\
**Post date:** [October 22, 2004, 5:07pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/7 "2004-10-22T17:07:50Z")

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No problem at all…This is exactly how we expected things to be going over 1 and a half years after we “liberated” Iraq. Exporting oil to pay for reconstruction vs. importing oil, statues of Bush in Baghdad vs. American soldiers getting killed nearly every day. Not really much difference. :rolleyes:

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**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\
**Post date:** [October 22, 2004, 5:10pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/8 "2004-10-22T17:10:21Z")

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> [@jshore](#):
>
> This is exactly how we expected things to be going over 1 and a half years after we “liberated” Iraq.

In that sentence, who is “we”? Americans generally, or just the ones calling the shots?

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**Author:** ![Malodorous](https://avatars.discourse-cdn.com/v4/letter/m/e47774/32.png) [@Malodorous](https://boards.straightdope.com/u/Malodorous)\
**Post date:** [October 22, 2004, 5:17pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/9 "2004-10-22T17:17:33Z")

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> [@BrainGlutton](#):
>
> I thought Iraq’s oil was supposed to finance its reconstruction. How did things get this fucked up?

This is what bothers me. I understand that the insurgency has been a problem and that currently Iraqi oil production is understandably low. But all during the lead up to the war, we heard that the oil was going to help pay for the reconstruction. Since obviously they weren’t going to have that money upfront and it would take a while to get enough oil to start paying us back, a loan sounded like a good way to do this. Even a no interest loan with generous terms about when it had to be payed back sounded good. After all, at somepoint I’m sure Iraq will settle down and start pumping oil and turn into a rich mideast nation. At that point paying back the loan doesn’t seem like it would be that much of a hardship. Instead, the administration changed course and decided to make reconstruction a multi billion dollar gift, making the Iraq even more of a money pit then it already was.

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**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\
**Post date:** [October 22, 2004, 5:31pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/10 "2004-10-22T17:31:15Z")

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Iraq is not importing oil, it is importing refined products, like diesel and benzine, and it has been for quite some time. In fact, Iraq is now importing 29% of its benzine, roughly a third of its LPG supply, and about 15% of its diesel.

Pretty much what others have said, Iraq’s refining capacity is a shambles. However, its production of crude is right around its pre-war numbers, about 2.4 million barrels per day. Exports of that crude have brought in $13 billion in revenue this year. I don’t have exact numbers handy, but most of those funds are used for operating expenses of the Iraqi government (from health care to garbage pickups), and some of it has been siphoned off into reconstruction projects, because the Bush Administration hasn’t been spending the $18 billion in reconstruction aid that Congress approved last year.

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**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\
**Post date:** [October 22, 2004, 5:40pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/11 "2004-10-22T17:40:27Z")

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> [@Ravenman](#):
>
> I don’t have exact numbers handy, but most of those funds are used for operating expenses of the Iraqi government (from health care to garbage pickups), and some of it has been siphoned off into reconstruction projects, because the Bush Administration hasn’t been spending the $18 billion in reconstruction aid that Congress approved last year.

😕 Why not?

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**Author:** ![PatriotX](https://avatars.discourse-cdn.com/v4/letter/p/c4cdca/32.png) [@PatriotX](https://boards.straightdope.com/u/PatriotX)\
**Post date:** [October 22, 2004, 6:20pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/12 "2004-10-22T18:20:27Z")

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> [@BrainGlutton](#):
>
> I thought Iraq’s oil was supposed to finance its reconstruction.

Are you making a sarcatstic reference to Wolfowitz’s(?) moronic prediction that could’ve been debunked had he bothered to spend ten minutes Googling?

> [@Ryan\_Liam](#):
>
> I don’t see a problem with this, Iraqis infrastructure is delapilated and more prone to attacks from insurgents.

The problem pretty much is that Iraq’s infrastructure is delapilated and more prone to attacks from insurgents.  
Things have been better in the occupation. Things have gone down hill again. There’ve been a number riots over fuel shortages.

> [@Ryan\_Liam](#):
>
> …an Oil shortage.

This also is one of the problems that you don’t see.

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**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\
**Post date:** [October 22, 2004, 6:39pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/13 "2004-10-22T18:39:58Z")

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> [@BrainGlutton](#):
>
> 😕 Why not?

Partially because it’s been harder to track the Iraqi government’s operating budget after the CPA dissolved. The CPA had it right up there on its website prior to June, but I haven’t seen any updates since then.

FWIW, in March 2004, the Iraqi annual budget was amended to estimate that there would be 21 trillion Iraqi Dinars (ID) in oil revenue, which is basically all of the government revenue. The budgeted government expendatures are 29.9 trillion ID, close to 1 trillion of which is for reconstruction/national building type activities.

Again there have been press reports discussing how some oil revenue has been diverted to the coalition for other reconstruction activities. I’m happy to dig those up if you haven’t seen them.

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**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\
**Post date:** [October 22, 2004, 9:08pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/14 "2004-10-22T21:08:38Z")

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> [@Ravenman](#):
>
> FWIW, in March 2004, the Iraqi annual budget was amended to estimate that there would be 21 trillion Iraqi Dinars (ID) in oil revenue, which is basically all of the government revenue.

So this “government” isn’t even collecting taxes?

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**Author:** ![Mtgman](https://avatars.discourse-cdn.com/v4/letter/m/b5a626/32.png) [@Mtgman](https://boards.straightdope.com/u/Mtgman)\
**Post date:** [October 22, 2004, 9:39pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/15 "2004-10-22T21:39:40Z")

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> [@BrainGlutton](#):
>
> So this “government” isn’t even collecting taxes?

From whom? The [70% of Iraqis who are unemployed?](http://english.aljazeera.net/NR/exeres/A66151CB-2105-418B-BFAA-73211A631611.htm)

Enjoy,  
Steven

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**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\
**Post date:** [October 22, 2004, 9:42pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/16 "2004-10-22T21:42:23Z")

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> [@Mtgman](#):
>
> From whom? The [70% of Iraqis who are unemployed?](http://english.aljazeera.net/NR/exeres/A66151CB-2105-418B-BFAA-73211A631611.htm)
> 
> Enjoy,  
> Steven

:eek: Shit, it’s even worse than I thought! How are we going to get out of this mess?

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**Author:** ![Mtgman](https://avatars.discourse-cdn.com/v4/letter/m/b5a626/32.png) [@Mtgman](https://boards.straightdope.com/u/Mtgman)\
**Post date:** [October 22, 2004, 10:39pm UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/17 "2004-10-22T22:39:37Z")

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> [@BrainGlutton](#):
>
> :eek: Shit, it’s even worse than I thought! How are we going to get out of this mess?

Massive federal spending to start with. Think New Deal style spending. Your kids and grandkids may hate your ass for selling them into economic bondage, but it’s either that or watch Iraqis starve. The main source of food is government-funded handouts at the moment. If we don’t pump money into the government of Iraq they won’t even be able to do that, and the people can’t wait until they have a job to buy their own food, they need it now.

Enjoy,  
Steven

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**Author:** ![PatriotX](https://avatars.discourse-cdn.com/v4/letter/p/c4cdca/32.png) [@PatriotX](https://boards.straightdope.com/u/PatriotX)\
**Post date:** [October 23, 2004, 12:57am UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/18 "2004-10-23T00:57:47Z")

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> [@Mtgman](#):
>
> Massive federal spending to start with. Think New Deal style spending. Your kids and grandkids may hate your ass for selling them into economic bondage, but it’s either that or watch Iraqis starve. The main source of food is government-funded handouts at the moment. If we don’t pump money into the government of Iraq they won’t even be able to do that, and the people can’t wait until they have a job to buy their own food, they need it now.
> 
> Enjoy,  
> Steven

Due to the poor non-physical infra-structure, just throwing money at Iraq won’t make things better. There need to be better means of putting the money to work first.

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**Author:** ![Zagadka](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zagadka/32/7272_2.png) [@Zagadka](https://boards.straightdope.com/u/Zagadka)\
**Post date:** [October 23, 2004, 1:56am UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/19 "2004-10-23T01:56:36Z")

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Yeesh, where’s all the rebuttals and desperate Kerry-bashing? I leave for a few months and it all falls down (along with, as it seems, Iraq).

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**Author:** ![PatriotX](https://avatars.discourse-cdn.com/v4/letter/p/c4cdca/32.png) [@PatriotX](https://boards.straightdope.com/u/PatriotX)\
**Post date:** [October 23, 2004, 2:54am UTC](https://boards.straightdope.com/t/iraq-now-importing-oil/270611/20 "2004-10-23T02:54:09Z")

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> [@Zagadka](#):
>
> Yeesh, where’s all the rebuttals and desperate Kerry-bashing? I leave for a few months and it all falls down (along with, as it seems, Iraq).

I’m saving my Kerry-bashing for in case he wins the election.

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