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Particularly long gas lines in Baghdad

July 1, 2008

Frustrated Iraqis trying to tank up their cars faced miles-long gas lines on Tuesday - a stark reminder that a country with one of the world’s largest oil reserves still has major challenges delivering fuel to its people.

The lines followed Iraq’s announcement Monday that it was opening six major oil fields and two natural gas fields to development by foreign firms, which could lead to the biggest outside stake in Iraq’s oil industry since it was nationalized more than 30 years ago.

The government hopes these contracts will boost oil production by 60 percent from levels that are already the highest since the U.S.-led invasion in 2003. Increased production would provide additional resources to rebuild Iraq’s infrastructure and deliver services to the people.

But the gas lines snaking nearly 2 miles down the streets of Baghdad on Tuesday show it will take a lot more than money to translate record oil prices and increased production into concrete improvements in the quality of life for the Iraqis.

Iraq’s Oil Minister Hussain al-Shahristani has said the country expects to reap revenues of $70 billion by year’s end if world prices remain high. Oil prices exceeded $143 for the first time ever on Monday and show few signs of falling.

But sectarian strife, rampant corruption, lack of adequate refineries and inefficient government institutions limit the positive impact that increased public revenues could have on average Iraqi citizens like Habib Hadi, who lined up for gas at 4 a.m. Tuesday.

After waiting more than four hours, he said he finally edged close to the gas station and “saw a catastrophe.”

“The gas pump was not working because of the lack of electricity,” Hadi said.

The fragile nature of the country’s oil distribution system means that periodic shortages appear from time to time. But this week’s crunch seems worse than most.

Oil Ministry spokesman Assem Jihad blamed the shortage on sabotage of a pipeline bringing crude oil from the southern fields to a refinery in Baghdad. He gave no further details and would not say how long the shortage would last.

Fuel and electricity shortages increase hardships in Iraq in the summer, when temperatures soar well above 100 degrees Fahrenheit, making life uncomfortable without air conditioning.

The government continues to have problems providing regular power, and many rely on gas-run home generators for electricity.

The official price for a liter of gasoline in Iraq is the equivalent of about 38 cents, or about $1.44 a gallon. But the black market price, which has risen significantly in recent days, can be almost three times that amount.

Many residents in eastern Baghdad who lined up early Tuesday for fuel could do little more than stand outside their cars in the sweltering heat, waiting for the lines to move.

A vendor rode his bicycle cart by a group of frustrated Iraqis, as several drivers pushed their cars toward a gas station they couldn’t even see, they were so far away.

Falah Taweel, a gas station attendant scrambling to serve endless customers, said he blames the long waits on fuel shortages, rising summer demand and electricity problems.

“As official distributors, we are in a very bad situation. We can’t meet the demand,” said Taweel. Frustrated drivers behind him yelled at one another.

An Iraqi’s simple demand for a tank of gasoline is in sharp contrast to the grand plans announced Monday on the opening of the major oil and gas fields to foreign firms to boost production by 1.5 million barrels per day.

Iraq currently produces 2.5 million barrels per day and hopes to raise that to 4.5 million by 2013.

Al-Shahristani named 35 foreign companies that would be eligible to bid for the development contracts, including seven from the U.S., three from Britain and others from countries like Russia and China.

Iraq had been expected to announce short-term, no-bid contracts with five major Western oil firms Monday as a stopgap measure to boost production until the government awards longer-term deals next June. However, the oil minister said the government was still negotiating with the companies, which he did not identify.

He said the firms wanted to participate in oil field production rather than simply provide consulting services for cash.

Some fear a dominant role for Western firms in Iraq’s oil industry could feed perceptions that U.S.-led forces toppled Saddam Hussein to grab the country’s natural resources.

AP | SEBASTIAN ABBOT | Tuesday,  July 1, 2008

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Comments

One Response to “Particularly long gas lines in Baghdad”

  1. Agneta on July 2nd, 2008 12:26 pm

    All the major CEO´s from the leading oil companies and OPEC members are singing the same tune in their coordinated answers to the media, specially when questioned about the high profits made.
    ( We need this profits to invest on new drilling and ventures to avoid this type of crisis due to high demand )
    ( The world has changed and with new developing nations demanding more oil the prices have to be higher to adjust to this high demand)
    This are the standard synchronized quotes by all executives of CHEVRON`S, TOTAL`S, EXXON, SHELL, REPSOL, and OPEC leaders, etc, etc.

    THIS IS A LIE! A CRAFTED AND MACHIAVELLIC LIE! CRAFTED TO CHEAT US ALL!

    The fact is that oil financed warmongering, pessimistic news, books and articles such as the recent on covert operations on Iran by the CIA and the possibility for war in the gulf region, are done and financed by the oil companies feeding, disinformation to the naive news stations, magazines, newspapers.

    The media today are so eager to report on stories to continue on that pessimistic frenzy which got us all in the mess we are in now!

    Selected moll analyst and writers in major companies are getting additional bonuses under the table by oil lobby /agents in order to create a chaotic trading state in the various exchanges throughout the world.

    FEARS OF SUPPLY! FEARS OF WAR! FEARS OF STABILITY! This are the real terrorists!, terrorist play on our fears, and we should stop buying the fear story fed by analysts, speculators and media story financed by OIL companies!

    Many of this stations are quick report on data fed to them by pawns with out checking the source.

    Their investigative reporting teams should hound this executives and their agents, consultants, lobby, analysts, writers and follow the money trail.
    There you will get the truth, ask for total transparency on their books, in fact if governments truly care they should demand this information, we need to know how each and every penny is spent.

    We all know thief executives are getting obscene, beyond imaginable bonuses and salaries, this has to change! Why should they be allowed to place their hands in our pockets and take the few pennies we all have left on disposable income?

    We are left holding the bag and paying the price at the pump and overpriced goods! the insignificant rest of the population not benefiting from the billions stolen from us, in the biggest con on the history of humanity.

    STAND UP AND FIGHT LET YOUR VOICE BE HEARD! WE CAN`T TAKE THIS ANYMORE! MAKE YOUR GOVERNMENT ACCOUNTABLE THEIR ARE RESPONSIBLE AND THEY CAN`T STOP THIS CON TO HUMANITY

    PLEASE PASS THIS ON, TELL YOUR GOVERNMENT!
    PEOPLE NEED TO KNOW!
    THIS HAS TO STOP!

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