Meters Cost Iraq Billions In Stolen Oil

KTVT Investigation: Lack Of Metering At Terminals Funnels Billions Into Hands Of Corrupt Officials And Insurgents

(CBS)  This story was written by Robert Riggs, chief investigative reporter for CBS station KTVT in Dallas.

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Atop Iraq's al Basrah Oil Terminal, heavily armed anti-terrorism forces stand guard — while the theft of the century may be occurring right under their noses. Tankers berthed at the sprawling platform, located off Iraq's southern coast in the Persian Gulf, take on the oil that is the lifeblood of Iraq's war-torn economy.

Millions of dollars' worth of oil is stolen daily in Iraq because of the absence of oil meters, a basic tool for preventing corruption, according to estimates by classified CIA and State Department reports, the Iraq Study Group Report , a former consultant to a U.S. oil company and a former State Department adviser to Iraq's Oil Ministry.

A six-month investigation by KTVT found the annual thefts run into the billions of dollars and help fuel insurgents, sectarian militias and corrupt officials — as well as deprive the Iraqis of much-needed money to run their struggling government.

"I would say probably between 200,000 and 500,000 barrels a day is probably unaccounted for in Iraq," says Mikel Morris, who worked for the State Department's Iraq Reconstruction Management Organization (IRMO) in Baghdad. Depending on fluctuations in the price of oil, the thefts could be worth $20 million to $30 million per day.

A Houston-area petroleum engineer, Morris says Iraq's oil industry is wide-open to corruption because there are no working meters anywhere in the system to keep count of how many millions of barrels of oil Iraq produces or exports. "It’s like a supermarket without a cashier. There is no metering. And there's no metering at the well heads either. There's no metering at any of the major pipeline junctions," he says.

KTVT obtained photographs taken last spring during an Iraqi inspection that picture rusted, broken meters on the al Basrah Oil Terminal, known as the ABOT.

The bulk of Iraq's crude oil exports, which provided 94 percent of Iraq's $28 billion budget last year, are pumped into tankers at the terminal. The ABOT's oil meters have been inoperable since the U.S. invasion nearly four years ago, according to the U.S. Army Corps of Engineers, a former senior oil consultant for IRMO, statements by Iraqi officials and reports by a United Nations monitoring group.

Morris and other sources familiar with operations at the ABOT suspect that the inoperable meters allow corrupt officials to overload tankers with oil that is then sold on the black market. Intelligence reports warn that the profits from smuggled oil and petroleum products help fuel the insurgency in Iraq, though estimates of the losses vary widely.

A recent report to the Congressional leadership by the Government Accountability Office (GAO) also attributed the losses of Iraqi petroleum products to insurgents and underscored the absence of working meters. "According to State Department officials and reports, about 10 percent to 30 percent of refined fuels is diverted to the black market or is smuggled out of Iraq and sold for a profit. According to U.S. Embassy documents, the insurgency has been partly funded by corrupt activities within Iraq and from skimming profits from black marketers. In addition, Iraq lacks fully functioning meters to measure oil production and exports."

[clemenhagen1]

So billions of dollars goes missing from the untended meters in Iraq and we should automatically assume the evil powers that be in Iraq funnel the proceeds to shadowy insurgent and terrorist networks. How much money in cash disappeared under Viceroy Bremer's tenure? Nice title by the way - Viceroy possesses some thoughtful historical connotations don't you think. Got that number of missing cash yet? Oh that's right: eight billion dollars plus. Didn't that cash come from liquidated Iraqi assets. We convert Iraqi assets to cash and it mysteriously / magically disappears into the ether? But this missing oil couldn't possibly be a result of the same scenario, right? Right.

[firststate]

Does anyone really believe that quick draq and baba looey in the white house and their oil patch pals haven't known the possibilities opened up by a lack of metering? The skimming hasn't been a problem for almost 4 years until it started attracting attention. Nobody at Halliburton missed the fact that there were no meters and you can take that to the bank, but not their banks. Those are full, hence the meters being installed in May.

[radiob-2009]

The easy solution here is install new working meters.Let the Iraqis pay for them with the lost oil that they will be able to account for with the new meters.

[godmonkey-2009]

Well, Lars, you're probably right. We'll also probably destroy the environment and all die from thirst and exposure hahahaha. Of course, by then, life in America will be so miserable, an oligarchy so rife with corruption, that it'll come as a relief hahahaha.

How do you recommend we pay for this endless war? Is yore pa gonna sell his tractor and send the money to Washington? hil-hil-hil-hil

[bluestardad]

Hey Congress, We know you cannot protect innocent high school pages in the Halls of Congress nor put Pedophiles in Jail like Mark Foley, how about thieves of billions of dollars, and Liars that cause the deaths and Maiming of Thousands of American Soldiers and sends our country to a war on a lie? The Middle East is not in American Interest, we have invested 50 years of blood, and money is enough is enough! Did the Neocons slip you some money how about thirty pieces of silver for your vote or compliancy in this war?
firststatehttp://www.senate.gov/general/contact_information/senators_cfm.cfm

[gunnerv1]

Actually, Mark Foley didn't break any laws, other than being a "sick puppy". Don't worry, I'm not sticking up for him, just stating a fact.

[legendary240]

Why are 21st century Americans at the behest of 19th century ragheads?

[bluestardad]

This and the Slant drilling is why this war was started at the bidding of the Neocon chicken hawks from Saudi and Israel.

[bluestardad]

clestes ; thank you I wrote all of them except Levin of Michigan he had no contact page.

[lars008-2009]

doesn't matter.......... hahahahahaha

usa will have bases and troops in the middle east for a long long time...... get used to it.....

[bluestardad]

Great I wish more people would contact their senators!

[lars008-2009]

islam is a violation of international law

islam practices slavery on non muslims
islam practices aparthied on non muslims
islam practices rape on non muslims
islam practices genocide on non muslims

all are violations of international law and are crimes against humanity

[clestes-2009]

bluestardad, I already have.

[lars008-2009]

relax you stupid silly fascist nazi islamic muslims.......
the usa will have bases and troops in the middle east for a long long time...... get used to it.....

[bluestardad]

Hey Congress, We know you cannot protect innocent high school pages in the Halls of Congress nor put Pedophiles in Jail like Mark Foley, how about thieves of billions of dollars, and Liars that cause the deaths and Maiming of Thousands of American Soldiers and sends our country to a war on a lie? The Middle East is not in American Interest, we have invested 50 years of blood, and money is enough is enough! Did the Neocons slip you some money how about thirty pieces of silver for your vote or compliancy in this war?
firststatehttp://www.senate.gov/general/contact_information/senators_cfm.cfm

[arthurcl1]

Sure, what funds the insurgents? How do they buy weapons to shoot down our helicopters? Oil Money from their own pumps! Emperor Dyanastic Bush is responsible for this Vietnam War! He is Bankrupting this country!

[edjohn66]

I sure am glad that securing Iraq right after major hostilites ended was the #1 U.S. priority.

Wait! No it wasn't! Chaos reigned supreme for weeks because we had no post-war occupation plan!

We did, however, secure the oil fields and refineries. I sure am glad that securing the oil fields and refineries was accomplished.

Wait! You mean that wasn't done either?????

Would someone please tell me what Bush, Cheney, and Rummy did RIGHT during this whole operation? And now we are supposed to trust Bush and Cheney with an escalation of the war????????

Impeachment now! Its the only option that makes sense.

[bluestardad]

Contact your senator; The middle East is not in American Interest, we have invested 50 years of blood, money enough is enough! Saudia Arabia, Israel the lot of them, their neocons got us in this mess!
firststatehttp://www.senate.gov/general/contact_information/senators_cfm.cfm

Founded in 1953 by Isaiah L. "Si" Kenen, AIPAC's original name was the American Zionist Committee for Public Affairs. According to UCLA political science professor and author, Steven Spiegel, "the tension between the Eisenhower administration and Israeli supporters was so acute that there were rumors (unfounded as it turned out) that the administration would investigate the American Zionist Council. Therefore, an independent lobbying committee was formed, which years later was renamed [AIPAC]." [SPIEGEL, p. 52].[citation needed] Today, AIPAC has over 100,000 members.[1]
AIPAC's stated purpose is to lobby the Congress of the United States on issues and legislation "to ensure that the U.S.-Israel relationship is strong so that both countries can work together" to meet the challenges of "stopping Iran from acquiring nuclear weapons, fighting terrorism and achieving peace".[2] It regularly meets with members of Congress and holds events where it can share its views, and provide analysis of voting records of U.S. federal representatives and senators with regard to support of Israel. The New York Times described AIPAC on July 6, 1987 as "a major force in shaping United States policy in the Middle East."

[stevex47]

Anyone going to win in this debacle? Freedom for Iraqi's? Snuffing out world terrorists? Secure energy for the west?
I'm guessing none of the above. How the heck did we let this happen? Oh boy we're gonna pay for this for a LONG time. Nic job reich wing.

[bluestardad]

clestes; well spoken but who is listening? Here is how to contact your senator.

Make it count!

firststatehttp://www.senate.gov/general/contact_information/senators_cfm.cfm