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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: Venditâ„¢ who wrote (2571)12/11/2004 6:47:39 PM
From: Walkingshadow  Read Replies (1) of 8752
 
More on Iraqi oil:

biz.yahoo.com

Associated Press
Attacks Blamed for Iraq's Fuel Shortages
Saturday December 11, 2:26 pm ET
By Sameer N. Yacoub, Associated Press Writer
Iraqi Oil Minister Blames Rebel Attacks for Worsening Fuel Shortages Ahead of Election

BAGHDAD, Iraq (AP) -- Iraq's oil minister on Saturday blamed insurgents for the country's worsening fuel shortages, saying saboteurs have targeted the oil industry to increase pressure ahead of the Jan. 30 elections.

The fuel shortage -- ironic in a country with some of the world's largest petroleum reserves -- has embarrassed Iraq's interim government. Other services also are barely functioning. Electricity supplies remain erratic, with frequent outages plaguing the Baghdad and other cities.

Lines at gas stations in Baghdad stretch for miles, forcing some drivers to wait for 18 hours before reaching the pumps. Although the official price of gasoline is about 5 cents a gallon, it can reach 50 cents on the black market.

Oil Minister Thamir Ghadbhan laid the blame for the shortages on the rebels. "They want to make fuel shortages, (provoke) chaos in the country and prove the government has failed," Ghadbhan told a news conference.

Exports from Iraq's northern oil fields resumed Saturday, after insurgents last month blew up part of the main pipeline carrying Iraqi crude to Turkey.

An official from the state-run Northern Oil Co., speaking on condition of anonymity, said 500,000 barrels of crude will be pumped daily from northern Iraq oil fields to the Turkish port of Ceyhan.

The pipeline connecting the northern Kirkuk oil fields with Ceyhan was blown up Nov. 15 near Safra, 40 miles southwest of Kirkuk. The attack shut down oil exports from the north.

Iraq was pumping an average of 400,000 barrels of crude a day through Turkey before a series of sabotages in early November. In that month, there were 27 attacks against pipelines, compared to only two attacks in February, Ghadbhan said.

Insurgents have repeatedly targeted the country's crucial oil infrastructure in a bid to undermine the U.S.-backed interim government.

The Oil Ministry said that between August and October, Iraq lost $7 billion in potential revenues due to sabotage.

About 750,000 foreign cars are estimated to have come from neighboring countries since the fall of Saddam Hussein last year, and fuel consumption for the past year has soared to 12 million gallons.

Ghadbhan also accused criminal gangs of stealing large quantities of Iraqi oil by punching holes into the unguarded oil pipelines and then smuggling stolen oil out of the country.

"This has affected the operations in Basra refinery and the pumping of oil products to several parts in the country" he said. Ghadbhan urged security forces to take additional measures to secure the network of pipelines.
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