Gulf and European Energy Supply Security - Feem-project.net

Energy Security: Potential for EU-GCC Cooperation
Secondly, the war confirmed that when modern
military forces are involved and advanced weaponry
is available, the conflict is likely to be short and
have a clear winner. Thirdly, it was shown that the
only way extensive damage can be inflicted on oil
installations – especially upstream oil installations
– is if there is a physical military presence on the
ground.
the Us-led Coalition Intervention for Regime
Change in Iraq (third Gulf War)
Sanctions remained in place against the Saddam
Hussein regime throughout the period from the
withdrawal of Iraqi troops from Kuwait to the US-led
invasion of Iraq in 2003. Sanctions did have an impact
on the availability of crude oil to the world, and
there is little doubt that Iraq would have produced
more than it did, had international oil companies
been allowed to sign the contracts that were on
offer during the 1990s. Arguably, sanctions imposed
by importers have had very significant impact on
oil production, much more significant than most
conflicts, terrorism or “resource nationalism.”
The military operation to topple the regime
of Saddam Hussein began on March 20, 2003, and
effectively finished on April 15. On May 1, President
Bush addressed the nation from the deck of the
USS Abraham Lincoln claiming
“mission accomplished.” The
next phase, commonly
7,000.00
dubbed the “insurgency,” was
technically a widespread
6,000.00
wave of violent action on the
part of non-state actors, not
5,000.00
entirely coordinated in a single
opposition force. This led to
4,000.00
extensive losses of human life
3,000.00
but also widespread sabotage
of oil installations.
terrorism and oil
Installations in Iraq
Iraq’s oil sector was a target
of insurgent activity almost
since the beginning of the
US occupation in April 2003.
42
2,000.00
1,000.00
0.00
0
7
9
1
2
7
9
1
The first recorded attack took place in mid-June
2003, merely two months after the occupation of
Baghdad. The oil and gas pipeline network is the
most vulnerable of Iraq’s oil infrastructure and
was the main target of attacks; over 280 attacks
or sabotage operations were carried out between
mid-2003 and 2007. Attacks were aimed at the
destruction or disabling of the pipeline network, as
well as at preventing the repair or restoration of the
network. In the period 2003-2007, almost 90 attacks
were carried out on oil sector personnel. As a result,
Iraq’s oil sector lost between 10-15 percent of its
work force.
Attacks on the Iraq-Turkish pipeline rendered
it non operational for a long period. Every day that
this pipeline was not operational, Iraq’s economy
was losing approximately $7 million. Three suicide
boats attacked the Basra offshore oil export
terminal. Though the terrorists failed to damage
the facility, this attack alone cost the country some
$40 million in lost revenue. If we consider monthly
oil production data and the maximum excursion
from the lowest point (January 2007) to the highest
recorded production (December 2007), then we
should say that security disturbances cost Iraq fully
1 million b/d.
Figure 6: Iran Crude oil Production
y
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4
7
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1
6
7
9
1
8
7
9
1
0
8
9
1
Source: BP Statistical Review of World Energy, various years
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4
8
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8
8
9
1
0
9
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