Keeping Iraq's Life Blood Flowing - Protecting the Offshore Oil Terminals
Dec 2007, Vol. 152, No. 6
By Wayne Keble
Oil accounts for 70 per cent of Iraq’s GDP; it is quite literally the country’s life blood. Estimates vary, but oil valued at up to $18 billion a year is thought to flow through the two terminals off Iraq’s coast. No other country or economy in the world has quite such a vulnerable, single point of success or failure. Whilst Iraq is one of the cheapest places to produce oil it is also one of the world’s most dangerous with up to 25 per cent of the price of oil exported from the region attributed to a ‘security premium’ which reflects concerns that attacks could interrupt supplies. The oil exporting infrastructure is a sensitive target; protecting it is seen by the West as an enduring commitment, and whilst the nascent Iraqi Navy is making good progress, it is not yet ready to assume full responsibility.
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By Wayne Keble
Oil accounts for 70 per cent of Iraq’s GDP; it is quite literally the country’s life blood. Estimates vary, but oil valued at up to $18 billion a year is thought to flow through the two terminals off Iraq’s coast. No other country or economy in the world has quite such a vulnerable, single point of success or failure. Whilst Iraq is one of the cheapest places to produce oil it is also one of the world’s most dangerous with up to 25 per cent of the price of oil exported from the region attributed to a ‘security premium’ which reflects concerns that attacks could interrupt supplies. The oil exporting infrastructure is a sensitive target; protecting it is seen by the West as an enduring commitment, and whilst the nascent Iraqi Navy is making good progress, it is not yet ready to assume full responsibility.
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