News and Document archive source
copyrighted material disclaimer at bottom of page

NewsMinewar-on-terroriraqoil — Viewing Item


Oil output plunges to lowest levels { January 3 2006 }

Original Source Link: (May no longer be active)
   http://www.iht.com/articles/2006/01/02/news/iraq.php

http://www.iht.com/articles/2006/01/02/news/iraq.php

Iraqi aide resigns as oil output plunges
By Richard A. Oppel Jr. The New York Times
TUESDAY, JANUARY 3, 2006


BAGHDAD The Iraqi oil minister resigned Monday as gasoline shortages worsened and official figures for December showed that oil exports remained at or near their lowest point since the war began in March 2003.

The oil minister, Ibrahim Bahr al-Uloum, quit after being placed on leave for condemning government price increases that tripled the cost of gasoline last month, setting off protests and long lines at the nation's gasoline pumps.

Oil exports averaged about 1.3 million barrels a day in December, far below exports of about two million barrels a day before the war, Bahr al-Uloum said. Rough weather in the Gulf was a major factor in the poor production levels, he said.

The figures disclosed Monday by Iraqi officials shed new light on the severe weaknesses in Iraq's energy infrastructure driven by acute electricity shortages and insurgent attacks on two large refineries that spurred a fuel crisis in Baghdad.

Across Iraq, meanwhile, insurgents renewed attacks on Iraqi security forces, striking a busload of police recruits with a suicide car bomb near Baquba, north of Baghdad, just after 11 a.m. Monday. Three of the dead were identified as police recruits but the other four were burned beyond recognition, according to the Interior Ministry. Thirteen others were wounded, including six police officers.

At Al Asad Air Base in western Iraq, four American contractors were killed Sunday when their bus was struck by a seven-ton truck, the military said in a statement. Eighteen civilians were injured in the incident, which Marine officials said was an accident.

In Baghdad, the Turkish ambassador dodged an assassination attempt near the airport on Monday, the Iraqi police said. And in Kirkuk, which saw riots over fuel prices Sunday, a would-be suicide car bomber and the insurgent who had intended to photograph the attack both died at the gates of an Iraqi Army base when their car detonated prematurely, said Colonel Bakhtiar Abdullah of the Iraqi Army.

In all of last year 1,673 members of the Iraqi security forces were killed, according to official Iraqi government statistics obtained by Agence France-Presse. Yet Iraqi ministry figures have proved in the past to be far understated. An independent group that tracks the deaths of Iraqi security forces, Iraq Coalition Casualty Count, estimates that 2,569 Iraqi police officers and soldiers were killed last year. Last month there were 193 fatalities, down from a high of 304 in July, according to the group.

On Monday, Iraqi officials sought to assure the nation that the worst part of the fuel crisis had passed. The deputy prime minister, Ahmad Chalabi, who took over the Oil Ministry last week after Prime Minister Ibrahim al-Jaafari forced Bahr al-Uloum to take leave, declared that tanker trucks were once again transporting gasoline to the capital from the large northern refinery at Bayji. The truck drivers had refused to make the journey for two weeks because of threats from insurgents.

Yet in an interview Monday, Bahr al-Uloum estimated that only 15 tanker trucks had made the journey Sunday. As many as 90 trucks are needed to ship the two million to three million liters, or about 500,000 to 750,000 gallons, of gasoline the refinery sends to Baghdad each day, he said. Whether the Bayji refinery can ship its full allotment to Baghdad "depends on the security situation in the north," he said.

At the same time it remained unclear how long the other major factors causing Baghdad's fuel crisis would go unresolved. Demand for gasoline in the capital has soared by two million liters a day - to about nine million liters - because of severe shortages of electricity, Bahr al-Uloum said. The added demand comes from residents and business owners loading up on gasoline at filling stations and using the fuel to power small electricity generators.

In addition, the Dora refinery in Baghdad, the other major source of gasoline for the capital, is operating at just 30 percent of its normal capacity of up to two million liters of gasoline per day after insurgents sabotaged a pipeline bringing oil to the facility, Bahr Al-Uloum said. He said he was hopeful the problem could be fixed early this month.

After gasoline from Bayji and Dora, the remaining supply for Baghdad typically comes from imports and other refineries, he said.

The outgoing oil minister had steadfastly criticized sharp increases in the price of gasoline, kerosene, diesel fuel and liquefied cooking gas that the Jaafari administration imposed in December as part of an agreement with the International Monetary Fund to cancel up to 80 percent of $120 billion in Iraqi debt held by certain creditor nations.

Bahr al-Uloum announced his formal resignation Monday, days after Jaafari, angered by the criticism of the price increases, ordered him to step down for 30 days.

For years Iraq sold its citizens gasoline and other petroleum products at a fraction of their true cost. Bahr al-Uloum has said that prices must be increased somewhat. But he reiterated on Monday his view that the agreement with the monetary fund was draconian and moved much too quickly to reduce Iraq's gasoline subsidies.

"We have to have a balance between the Iraqi people and the requirements of the IMF," Bahr al-Uloum said. "We know there is a problem with the price scheme, but the only way to do it is to go gradually. Otherwise we are not doing any good for the country."


Oil-for-food move in Sweden

Swedish prosecutors said they would investigate alleged bribery in the Iraq oil-for-food program under Saddam Hussein after a UN report found that several Swedish companies had been involved in kickbacks, Reuters reported from Stockholm on Monday.

A panel appointed by the United Nations last year reported that about 2,200 companies, including Volvo, had paid $1.8 billion to the former regime. Sweden's chief corruption prosecutor, Christer van der Kwast, decided to investigate possible breaches of international sanctions and bribery after studying the UN report.


After 36 years oil giants return to iraq { June 19 2008 }
Blair advisor says war for oil
Bp shell gets bulk iraqi crude oil
Bush funds shift to oil production and security { September 13 2004 }
Cheney 2001 energy task force { July 18 2003 }
Cheney eyes iraq before 911
Cheneys oil map { July 19 2003 }
Iran US stooge chalabi takes over oil { January 2 2006 }
Iraq agreements with major oil companies fail { May 2008 }
Iraq government to allow oil privitization { December 11 2006 }
Iraq oil ministry control { April 20 2003 }
Iraq oil mission successful says reporter { March 20 2006 }
Iraq producing less oil than under saddam
Iraq unions against oil privatization { November 2006 }
Iraqi union protesters fear loss of oil control { June 3 2007 }
Iraqi union workers protest oil privatization { June 5 2007 }
Iraqi war oil { September 15 2002 }
Iraqis fights over foreign oil rights { April 2007 }
Iraqis protest theft of sovereignty oil { June 2007 }
Iraqis want un control oil cash { May 9 2003 }
Israel eyes iraqi oil { April 9 2003 }
Israeli firm awarded oil tender in iraq { February 25 2004 }
Its the oil { September 23 2002 }
Last pipeline oil peak
Law keeps central control over oil in iraq { January 20 2007 }
Maybe 100 barrel
Oil advisor conflict interest { May 16 2003 }
Oil output plunges to lowest levels { January 3 2006 }
Post war iraq lags in oil production { May 2 2005 }
Pre 911 oil contracts { July 18 2003 }
Protect oil { January 23 2003 }
Re engages oil { September 17 2002 }
Russia iraq oil { September 30 2002 }
Tricle could become gusher { May 10 2003 }
US advised iraqi ministry on oil deals { June 30 2008 }
Us asks israel explore reopening pipeline
Us wants oil industry control { May 9 2003 }
US written iraqi oil law opposed by iraqis
War oil stability { February 1 2003 }
Western companies to get 75 perc of iraqi oil profits

Files Listed: 40



Correction/submissions

CIA FOIA Archive

National Security
Archives
Support one-state solution for Israel and Palestine Tea Party bumper stickers JFK for Dummies, The Assassination made simple