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November 22, 2005
Another problem

It gets very little coverage in the USofA MSM, probably because the Bush Administration has demanded that no one talk about it for fear people start to think that invading Iraq was All About the Oil, but, you know, the oil supply in Iraq is in trouble. Under attack and consequently under-producing.

Attacks on oil costing Iraq at least $28 million a day

Insurgent attacks are costing Iraq about 500,000 barrels of oil a day, almost a third of its daily output. At today's oil prices, that's costing the country at least $28 million in export earnings every day.

In the run-up to the war, the Bush administration and Iraqi exiles said oil exports would provide badly needed petrodollars to help rebuild Iraq and offset the cost of the U.S.-led occupation. "The oil revenues of that country could bring between $50 (billion) and $100 billion over the course of the next two or three years," then-Deputy Defense Secretary Paul Wolfowitz told Congress on March 27, 2003, shortly after the war began. "... We're dealing with a country that can really finance its own reconstruction, and relatively soon."

But since the March 2003 invasion, Iraqi oil production has failed to match the prewar level of 2.5 million barrels per day. Production briefly approached that level in March and April 2004, but insurgent attacks on pipelines, oil wells and other infrastructure have eroded output since then.

Just another of the many problems.

Posted by AnneZook at 10:39 AM