3 posts tagged with oil by insomnia_lj.
Displaying 1 through 3 of 3.
Iraq - All oil, no gas. A consortium of 34 Turkish companies have joined together to stop all exports of petrol / refined oil products to Iraq, because Iraq's government owes them over $1 billion that they have so far been unable to pay. Iraq's largest refinery was forced to shut down in December, after its truck drivers walked off the job due to insurgent threats. They reopened ten days later, only to shut down again after an insurgent swarm attack killed and wounded more drivers. The refinery has once more ceased activity, as their reserves of refined fuel are full and there is no way to get them to their customers. Iraq's diesel-driven power plants are undersupplied too, leading to worsening outages.
Fables of the reconstruction. The Bush administration does not intend to seek any further funding for Iraqi reconstruction, leaving only $3.5 billion left to spend out of the $18.4 billion the US budgeted. Approximately half of all reconstruction costs spent so far -- $7.5 billion -- have been eaten up by increased costs due to the insurgency. All remaining reconstruction costs will depend entirely upon foriegn contributions and Iraq's oil industry. But will foriegn aid come through if its too dangerous to work there? Can Iraq's oil industry pay for reconstruction when its output has been in a tailspin for well over a year, falling from 2.8 million barrels a day in May 2004, to 1.82 million barrels per day in January 2005, to 1.2 million barrels a day by November. and ending the year with a low of 1.1 million barrels a day in December? As for the Iraqi infrastructure left to be rebuilt, water and sanitation is still poor in most areas, and electricity production, which looked promising last summer after imports from Iran and Turkey, has deteriorated again, falling to only 3700 megawatts in November 2005, essentially at the same level produced in May 2004.
Katrina targets New Orleans. Mandatory evacuations have been declared, and contraflow evacuation routes are in effect near New Orleans, as Hurricane Katrina, a very wet, drenching hurricane, approaches the city from the Gulf of Mexico, where it is gaining in size and strength, with an estimated 45% chance of making landfall as a category 4 or 5 hurricane. The computer models suggest that New Orleans will sustain a direct hit from Katrina, which could be "The Big One" warned about by experts, capable of flooding the city, polluting it with industrial waste, and even flooding the pump stations, leaving it incapable of pumping out the water. The hurricane is predicted to make landfall early Monday near Port Fourchon, which handles approximately 13% of U.S. oil imports, and 27% of U.S. domestic production.