This is money that Iraq surely needs for its own citizens.
Here's How ISIS Is Wrecking Iraq's Oil Industry
Armin Rosen, provided by
| September 17, 2014
The Islamic State has taken over several oil-producing areas in Iraq and Syria, raising fears that the group could leverage its hydrocarbon wealth to the point of economic self-sufficiency. A Washington Post article todaycomplicates that picture: ISIS is indeed producing between 25,000 and 40,000 barrels of oil a day, less than East Timor and Cameroon but about as much as Poland, Germany, or New Zealand. However, its oil is of poor quality, and ISIS is likely having trouble transporting it.
According to the report by Steven Mufson, ISIS is only capable of moving its oil by truck, suggesting that the group hasn't mastered the use of northern Iraq's oil pipeline system. And the smugglers who move the oil into Turkey and points west are only willing to pay around $40 per barrel of oil — $10-$15 less than Kurdish oil sells for in Turkish ports and $55 lower than the global price.
Some experts have estimated that ISIS brings in up to $3 million in revenue each day. But Ben Lando of Iraq Oil Report told the Post that ISIS's daily revenue might actually be as low as $250,000 a day.
Continue reading at:
http://www.chron.com/technology/businessinsider/article/ISIS-Is-Making-Less-On-O
Here's How ISIS Is Wrecking Iraq's Oil Industry
Armin Rosen, provided by
| September 17, 2014
The Islamic State has taken over several oil-producing areas in Iraq and Syria, raising fears that the group could leverage its hydrocarbon wealth to the point of economic self-sufficiency. A Washington Post article todaycomplicates that picture: ISIS is indeed producing between 25,000 and 40,000 barrels of oil a day, less than East Timor and Cameroon but about as much as Poland, Germany, or New Zealand. However, its oil is of poor quality, and ISIS is likely having trouble transporting it.
According to the report by Steven Mufson, ISIS is only capable of moving its oil by truck, suggesting that the group hasn't mastered the use of northern Iraq's oil pipeline system. And the smugglers who move the oil into Turkey and points west are only willing to pay around $40 per barrel of oil — $10-$15 less than Kurdish oil sells for in Turkish ports and $55 lower than the global price.
Some experts have estimated that ISIS brings in up to $3 million in revenue each day. But Ben Lando of Iraq Oil Report told the Post that ISIS's daily revenue might actually be as low as $250,000 a day.
Continue reading at:
http://www.chron.com/technology/businessinsider/article/ISIS-Is-Making-Less-On-O
