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."

[condumism]

The real untold story. Lack of meters proves why the Bush Admin so much wants to remain in Iraq, so he and his cronies can steal from Iraq as they steal from the US treasury.

[peter2489]

yes great idea,but who is going to be stupid enough to walk round and read the meters!!!.

[birdbathpoet]

Insanity! Oil stolen daily from under our noses to kill American soldiers and fund the insurgents
needs to stop ASAP. Take over the oil fields tomorrow morning and then its a buck for the US taxpayer, a buck for Iraqi reconstruction until the war debt is paid off. We went into Iraq with this administration telling us we would be repaid. The Iraq Study group mentioned unmetered oil, but it was burined deep in the report on one line! Should have been page one in bold. But they did get one thing right, the estimated TWO TRILLION dollars W's, Rumi's and Condi's not so excellent adventure is going to cost. And while were at it, forget the talk of democracy. Having a constitution does not a democracy make. People need to be willing to live by rule of law and this place is not ready. You cannot fast forward democracy's evolution no mater how many lives and dollars are poured into the sand!

[grazinggoat]

What is so wrong? Who is more entitled to the iraqi oil than Iraqis? Our corrupt administration Cronies and thieves gangs are steelin' that oil from the oil fields of Iraq. Why not Iraqis? Heh! Why not? ;)

[txgs33]

Boring!

come on, Iraq right now is the direct portal to hell! Should we really be surprised by this at all?

[feelfree1]

Re: "Meters Cost Iraq Billions In Stolen Oil"

Then it is settled. We must prevail in the war on meters!

[bildooreilly]

Don't forget George Bushs prophetic words.. "Oil will pay for this war" then think about those high gas prices and how the oil is funding the other side.

[feelfree1]

bildooreilly,

Re: "and how the oil is funding the other side"

By "other side", do you mean Exxon-Mobile?

[mikekleber]

Wow !!! I can't imagine oil, that was supposed to pay for the war, is being stolen right under George and ***'s nose. Oh well, our country can just suck it up and send another 200 billion dollars to Iraq. *** and George don't care, its not their money. I'm certain that *** and George know exactly where the money is going. Will January 2009 ever get here?

[tuckerndfw]

George Bush is the most incompetent & corrupt president in US history.

It is no longer surprising when I read about his gross negligence in managing his "war."

What is surprising is why he has not been impeached. Allowing Iraq's oil to be stolen (unaccounted for) is without a doubt negligence to the point of criminality.

And, George Bush, being the self-proclaimed "decider," is the culprit most responsible for this crime.

As well as all the other crimes that resulted from his incredibly poor decisions and general incompetence.

Maybe he should resign. And take his entire administration with him, including D. Cheney.

[arthurcl1]

How do you think the insurgents get their money to buy stuff to shoot down our helicopters? Oil Money! Bushes Vietnam Continues to Bleed us to death!

[formrusmcsgt]

I'm assuming the Bush administration will blame Iran for the lack of meters......

[bluestardad]

Bush gave Bremer a medal for his handling of the Provisional Iraqi Authority! Heck of a Job Bremer! Is there anywhere where this administration has not failed? But we have just now touched on the true reason of this war. Also the billions of barrels of Oil being Slant drilled from Iraqi reserves by Saudi and Kuwait!

[tuckerndfw]

Lars is mentally retarded.

As is his brother Singinrick.

Their caretakers allow them to spend time on the I'net so they don't pester the other retards at their group home.

Anyone who cuts & paste the same irrelevant drivel day in and day out must be mentally retarded.

There is no other realistic explanation.

[formrusmcsgt]

There is no other realistic explanation.
Posted by tuckerndfw at 04:38 AM : Feb 09, 2007

In lars' case, it's xenophobia. In singingrick's case, it's religious zealotry.

[tuckerndfw]

Sarge,

Lars (and rick) wouldn't be so annoying if he actually posted something worth reading. But he seems to only have about three or four comments he cuts & pastes.

And, they are never on topic.

That seems to indicate some kind of insanity unless he is being paid. And if so, whoever is paying him must be insane because Lars (and Rick) is a lousy spokesman for whatever cause he is attempting to promote.

[bluestardad]

On the most recent account of corruption CBS News Reported via, KVTV Dallas article that billions of gallons of oil are being stolen because Iraq has no meters in place to gauge how much oil is being produced, pumped, or loaded on to tankers in the gulf. This has been going on now in Iraq for years. How can anyone know how much money or oil has been stolen under the watch of Coalition forces, it makes the United Nations Oil for food scandal pale in comparison. If you combine this blatant theft with the Slant drilling being done by Iraqi%u2019s neighbors there are unaccountable billions of dollars being stolen in Iraq right now. What type of management or leadership has been responsible in Iraq for the last four years? Iraqi and American Dollars by the tons have been sent to Iraq and lost, stolen or squandered. Who has been in charge of this oversite where is the accountability?

[tuckerndfw]

Bluestandard,

For the past six years, the US has had one party government. One party governments are typically corrupt due to the fact no one challenges them.

Hopefully, in 2008, voters will ensure we have divided government by electing candidates from different parties in the congressional & presidential elections.

A dictatorship led by Democrats will be little different than the GOP led dictatorship. And, would be equally corrupt.

[coffeehead-2009]

Halliburton was the principal beneficiary of Cheney%u2019s privatization efforts for our military%u2019s logistical support and Cheney was paid $44 million for five year's work with them before he slipped back through the revolving door of war profiteering to become Vice-President of the United States. Asked about the money he received from Halliburton, Cheney said. "I tell you that the government had absolutely nothing to do with it."



Before the Iraq War began, Halliburton was 19th on the U.S. Army's list of top contractors and zoomed to number 1 in 2003. In 2003, Halliburton made $4.2 billion from the U.S. government. Cheney stated he had %u201Csevered all my ties with the company, gotten rid of all my financial interest."



In 2005, Sen. Frank Lautenberg (D-NJ) said Cheney's stock options which were worth $241,498 the year before and were valued at more than $8 million in 2005-- an increase of 3,281%. Cheney receives a deferred salary from the company---$205,298 in 2001; $162,392 in 2002; $178,437 in 2003; and $194,852 in 2004.

http://www.zmag.org/content/showarticle.cfm?SectionID=15&ItemID=12027

[luvny-2009]

The ABOT's oil meters have been inoperable since the U.S. invasion nearly four years ago.
"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.

Any bets on how much of this oil some how makes it back into Cheney or Bush's buddies pockets and somehow they gain by this also?

[gunownerdan]

THE DEMOCRATS AND THE REPUBLICANS ARE DESTROYING AMERICA.
But who cares? You must be one or the other.
BLEAT.

[enriquemexic]

hi

[jonathan0987]

hi

[yeah223]

hi

[jonathan0987]

were back

[yeah223]

i like big butts

[enriquemexic]

this site sucks.. and were back

[jonathan0987]

this sites awsome and were back

[artorios7208]

yo ppl the kids are back on web!!!schools out!

[yeah223]

I tjink the lead anchor for CNN is hot

[artorios7208]

did yall here abotu nicole smith!ytf did she have to die!!she was sooo friken hot!*** as hell!

[jonathan0987]

i just said
f
a
r
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and it says its bad lol

[artorios7208]

ok boys were suppose to do a recycling project...jp just had an idea...we can put a nude pic of angelina jolie and say that whoever recycles at least 50 thousand pounds of recycle objects will get to sleep with her..:Dill go for it

[jonathan0987]

hhhhhhhhhhhhhhhhhhhhhhhhohohohoo mery christmas

[artorios7208]

everyone called john paul is gay!!!!!!!!!!!

[bluestardad]

Who knows how much money has been stolen? Congress should say no to any new funding until the old funding is accounted for.

[jonathan0987]

peidao

[yeah223]

go to hell everone

[jonathan0987]

___
('_')
--------I---------
H

[bigwhtpony]

This is a very disturbing development. It speaks to corruption in the Iraqi government - obviously at high levels. If they can't police themselves, there's very little we can do for them.

[olebd]

Did somebody give computers and internet access to the group homes? There's been some really retarded posts popping up lately all over this web site. This is a message board! Not a chat room! Go play somewhere else.

[lpcgraham06]

hiall

[lpcgraham06]

hello who wants 2 chat say ME!!!

[lpsuperman]

Artorios7208 why all the cussing.

[lpsuperman]

lpcgraham06
me ('_')

[panhandlpete]

The "JEWELS" (OIL FIELDS) were the first operation of the Iraq War. The call back to say they were secure came before taking Baghdad.

Why did it take four years for this bright leadership to say "Oil is being stolen to pay for the insurgency?" Do you suppose the Iraqi leaders (and ours) looked the other way? Is the fight really over "who controls the oil fields?" Why is the importance of "METERS" being focused on right now, taking the heat off the "surge"?

Corruption, lies, greed....plenty to go around when there is no accountability. Soooo many questions, and not enough answers. DEBATE, DEBATE, DEBATE........but taking no action would be time, effort and more money wasted.

[lochlan-2009]

It is amazing, when they say "the theft of the century" they are not kidding. They've stollen $12billion ($12,000 million)in cash shipped to Iraq from the U.S. in 2003-2004. They've stollen trailer truck loads of cash from the Iraqi banks and blamed it on Saddams son. Cash houses in Saddams palace were plundered for 100's of millions. There are militia men over there taking bribes and robbing citizens of who knows what. Soldiers are smuggling stacks of cash home to the U.S., and now we find that high level officials are stealing $20-30 million a day from oil for years now. This was all that has been reported in the news in the last week alone. How much American tax payer dollars was stolen out of the $500,000million so far payed for this war (you know our top level officials and contract companies like Haliburton are getting their share of free money). Atleast we know now who supports the Bush/Cheney war in Iraq, and why. Largest robbery of the century is an understatment, a vast understatement.

[lochlan-2009]

Why are we fighting in Iraq?
After war profiteers and straight out stealing of hundreds of billions of dollars, the reason the White House is there is sumed up in one line in this article, "Iraq holds the world's second-largest proven oil reserves %u2014 approximately 100 billion barrels, with the potential of as high as 200 billion barrels. Control of that wealth is now up for grabs and is the major driving force behind the violence in Iraq"

[gunownerdan]

Oil will be the downfall of humanity.

[usawatchman]

I not sure if you saw the CBS NEWS the other night...
to fill you in they did a story on IRAQI WOMEN who were refugees in SYRIA
have to become PROSTITUTES in order to obtain food and shelter in SYRIA
We hear of TONS (130?TONS) of $100 dollar bill be given out all over IRAQ
yet these women have to become PROSTITUTES in order to SURVIVE

it was a great story because it shows how this is a war
for the RICH and INFLUENTIAL

NOT A WAR for FREEDOMS or IDEALS...

I knew there was a problem ,
however I did know how bad the problem had become...

WHAT MAKES ME FURIOUS
is they talk about giving out
TRUCK LOADS of MONEY in Iraq
Now thieves stealing Billions in oil...

yet there is NO MONEY
for the provisions (FOOD and SHELTER)
for these IRAQI REFUGEES...???

IN MY OPINION THIS WHOLE WAR

IS NOTHING BUT A SCAM TO EMPTY OUT THE TREASURY
AND
GIVE THE CRIMINAL ELITE POWER OVER US
(i.e. Taking away OUR RIGHTS...)