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[casi] Iraq oil "for thirsty WORLD markets"

"........ restoration of the country's oil production that augurs well for

Meanwhile, still no fucking oil for IRAQI hospitals, businesses, electric
Any wonder GIs are being targeted?  pg

Oil flows from northern Iraq
Thursday, August 14, 2003

Reopening of Turkish pipeline seen as pivotal to reviving industry
By Selcan Hacaoglu and Bruce Stanley / Associated Press

ANKARA, Turkey -- Iraq began pumping crude oil from its northern oil fields
Wednesday for the first time since the war -- a milestone in the restoration
of the country's oil production that augurs well for thirsty world markets.

Iraq sits atop the world's second-largest proven crude reserves, and oil
exports are vital to its postwar reconstruction and the success of U.S.
efforts to implant democracy in the country. Before the war halted Iraq's
oil production, the country pumped around 2.1 million barrels a day, most of
it for export.

Analysts said it was unclear how reliable the flow of oil from fields near
the northern Iraqi city of Kirkuk might prove to be, but the reopening of
the pipeline to Turkey's Mediterranean coast is a key step in rebuilding
Iraq's oil industry.

Saboteurs and looters have dogged efforts to rehabilitate the 600-mile
pipeline from Kirkuk to the Turkish city of Ceyhan. The lack of storage and
export facilities forced the Iraqis to reinject much of the northern crude
left over after refining for domestic use back into natural underground

"The export program has been stymied by unfortunate but continuing acts of
sabotage. This is still the issue," said Michael Rothman, chief energy
strategist at Merrill Lynch in New York. He said Iraqi oil exports were a
paltry 300,000 barrels a day in July.

Iraq began exporting from its giant southern oil fields last month, sending
fresh crude to ships waiting offshore in the Persian Gulf at the export
terminal of Mina el-Bakr. These southern exports have been intermittent,
however, because of power failures at the terminal and other interruptions.

Although Iraq's big northern fields also resumed production after the
U.S.-British invasion, crude from the north was unavailable for export.

Delays in Iraqi exports have helped lift U.S. oil prices to well above $30
per barrel. Despite historically low inventories of crude in major importing
countries, members of the Organization of Petroleum Exporting Countries
agreed July 31 to keep output steady -- a decision that provided no comfort
to consumers.

Iraq was expected to pump 300,000 to 400,000 barrels a day to Ceyhan. No oil
tankers are booked to load there, and oil was expected to flow for about 10
days before any vessels would be sent for loading.

Ceyhan already holds about 500,000 barrels of Iraqi crude in storage and has
room for around 7.5 million more barrels. Turkish energy officials said Iraq
previously stopped pumping crude to Ceyhan on March 23.

Iraq's oil exports resumed after the U.N. Security Council lifted sanctions
on Iraq in May and recognized the U.S.-led coalition's authority over the
country and its oil revenue.

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