In this GD thread – "The Democratic Domino Theory Revisited " – http://boards.straightdope.com/sdmb/showthread.php?t=305034&page=1&pp=50 – I raised two questions to which I was unable to find the answers by googling, and getting no anwers there I decided to post them here:
Oil production in Iraq before the war was 2.8 million barrels a day. It is now up to 2.5 million barrels a day. But how much of that oil is actually being exported? When it comes to using the oil to rebuild the country, after all, what matters is not the oil stream but the revenue stream. And I’ve heard a lot of news reports about pipelines getting blown up.
When Iraqi oil is sold abroad – who gets the money? Formerly, the oilfields and their revenues belonged to the state. Now, I understand, they have been or are being “privatized” – but into whose hands? Again, I can’t seem to find that out by googling.
These are very compelling questions, especially in light of this other GD thread – “Iraq contractor Custer Battles sued for fraud. Defense: CPA never existed!” – http://boards.straightdope.com/sdmb/showthread.php?p=5929780#post5929780 . sinical brit posted this link – http://news.bbc.co.uk/1/hi/programmes/file_on_4/4216853.stm – according to which over $8.8 billion of $20 billion in oil revenue raised under the Coalition Provisional Authority’s rule are unaccounted for.
Squink
March 10, 2005, 1:04am
2
Iraq to resume north oil exports
Iraq will restart crude oil exports from the northern pipeline to Turkey within 10 days, an oil official said.
“The pipeline will start exports within 10 days. It was supposed to start earlier but there was a problem. Tomorrow they will start to build up reserves,” said an Iraqi oil official.
The reserves will be built up at 200,000 barrels per day and held in storage near the Turkish border, the oil official said.
Attacks on pipelines are still a huge problem.
out of over $20bn raised in oil revenues during US-led rule, the use of $8.8bn is unaccounted for.
friedo
March 10, 2005, 1:34am
3
Iraq’s oil infrastructure was nationalized some time ago (I think before Saddam came to power, even.) Now it is owned by the current Iraqi government.
I know, but I’ve heard in several news reports since the occupation began that there were plans to “privatize” it. Did I misunderstand?
aahala
March 10, 2005, 4:30am
5
It’s the money they were going to privatize. That’s where the missing 8.8B went.
Here’s the Department of Energy’s current report on Iraq’s oil production, as of November, 2004. Obviously, some of the information is incomplete or out of date.
http://www.eia.doe.gov/emeu/cabs/iraq.html
It says, in part:
Iraqi oil sales and exports currently are being handled by SOMO [State Oil Marketing Organization]. The war and its aftermath seriously disrupted SOMO operations, but the organization has now been reconstituted and has resumed many of its operations. On June 5, 2003, SOMO issued its first oil sales tender since the war started, for 8 million barrels of Kirkuk crude stored in tanks at Ceyhan and 2 million barrels stored at Basra. On July 3, 2003, SOMO issued its second spot tender, for 8 million barrels of Basra Light.
In late July 2003, SOMO signed its first term contracts since the war, for Basra Light oil from Iraq’s southern fields. Major purchasers included BP, ChevronTexaco, ConocoPhillips, ENI, ExxonMobil, Marathon Oil, Mitsubishi, Petrobras, Repsol, Shell, Sinochem, Total, and Vitol. As of July 2004, Basrah Light reportedly was being priced at around $5 per barrel below dated Brent and $7 per barrel below West Texas Intermediate. On March 8, 2004, SOMO issued a tender for Kirkuk oil via the Turkish port of Ceyhan, the first such sale from Iraq’s northern oil fields in a year. The SOMO tender offers 6 million barrels of oil for March 12-19 delivery, to be sold in shipments of 1 or 2 million barrels. In late August 2004, SOMO signed an oil supply contract with Turkey’s Tupras for deliveries from September through December, the first “term” deal for Kirkuk oil since March 2003. As of October 2004, Kirkuk was being priced at around $6-$7 per barrel below dated Brent.
So, as of now, it looks like the oil is owned and produced by the state, and then the crude is being sold to private companies.
Here’s the Department of Energy’s current report on Iraq’s oil production, as of November, 2004. Obviously, some of the information is incomplete or out of date.
http://www.eia.doe.gov/emeu/cabs/iraq.html
It says, in part:
So, as of now, it looks like the oil is owned and produced by the state, and then the crude is being sold to private companies.
So the privatization plans, all the rage in 2003, have been put on hold. For how long? Are they (“they” being the people who were calling for it, and/or the occupying authorities) expecting the new National Assembly to take action on this? Or will they wait until the government under the new, yet-to-be-written constitution takes office in December? Or have they given up on the idea entirely?
