Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

8/25/2014 (2 years ago)

Catholic Online (www.catholic.org)

Jihadists' black market trade is hugely inefficient, oil analysts say

Declared by U.S. Defense Secretary Chuck Hagel on Thursday called the group "as sophisticated and well-funded as any group that we've seen" and "beyond just a terrorist group," the Islamic State is using a vast network of stolen petrochemical goods to keep their war machine going. While all this stolen oil from captured areas keeps the organization afloat to the tune of $2 million daily, oil analysts say that these ill-gotten gains may not be sustainable - proving what may be IS' "Achilles heel."

Analysts say ISIS' fledgling petro-state is already running into problems.

Analysts say ISIS' fledgling petro-state is already running into problems.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

8/25/2014 (2 years ago)

Published in Middle East

Keywords: Islamic State, bootleg oil market, repression, embargo


LOS ANGELES, CA (Catholic Online) - The Islamic State insurgency has control over swatches of Syria and Iraq and has begun to lay the foundations to become a small petro-state.

Analysts say the fledgling petro-state is already running into problems.

SAVE Iraqi Christians from Genocide --

While the Islamic State and its Sunni allies are known to have dominion over extensive smuggling routes into Jordan, Turkey and Iran, some experts believe they have been turning a blind eye to the group's illicit tankers and makeshift pipelines.

There are also unconfirmed reports of the Islamic State bribing the Syrian regime with oil to avert airstrikes. "We're talking about a regional black market extending from Syria to Iraq, from Jordan to the southern part of Turkey," Luay al-Khatteeb, director of the Iraq Energy Institute says.

U.S. military officials have also begun to suggest that wider intervention in Iraq and perhaps even

U.S. military officials have also begun to suggest that wider intervention in Iraq and perhaps even Syria could be on the horizon.


The Islamic State has coerced employees of oil facilities in Syria and Iraq to keep working, stabilizing oil production to an unprecedented degree for a non-state actor. It's an approach that reflects the Islamic State's immediate need for cash to bankroll ambitious plans of regional expansion.

The Islamic State's black market trade is hugely inefficient. For example, at the extraction stage, the insurgents will never be able to match maximum flow rates without the investment and expertise of private oil companies, who of course won't want to do business with a feared extremist group.

Islamic State oil then needs to be pawned off to middlemen at rates discounted by up to 75 percent, according to some estimates, as a fixed distribution network would be easy pickings for U.S. and Iraqi missiles.

Organized smuggling operations, "capture a lot of the value, offering one price to whoever controls the fields and then caging quite a high mark-up, which will still be well below the local market price," Richard Mallinson, a geopolitical analyst at London-based consultancy Energy Aspects says.

Finding customers, even indirectly, from an armed network reviled for its brutality is not easy, even if it comes with a drastically reduced price tag.

"This really restricts the scale of operations. There's always a market for smuggled oil at that low price, but not one that will simply expand and expand," Mallinson adds.

U.S. military officials have also begun to suggest that wider intervention in Iraq and perhaps even Syria could be on the horizon. Many suspect the caliphate could still be wiped out in its infancy.

There are also further questions about just how long Iraq's Sunnis will continue to tolerate the extremist takeover of their lands.

"Now that Western forces are operating more surveillance on Islamic State terrorists, I'm sure they can better identify where trucks are being filled, what routes they're taking, what borders they're crossing," said Mallinson.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for NOVEMBER 2016
Universal:
Countries Receiving Refugees: That the countries which take in a great number of displaced persons and refugees may find support for their efforts which show solidarity.
Evangelization: Collaboration of Priests and Laity: That within parishes, priests and lay people may collaborate in service to the community without giving in to the temptation of discouragement.



Comments


More Middle East

CHRISTIANS ATTACKED - Extremists destroy buildings and send Christians to hospital in Egypt Watch

Image of Christians continue the fight for rights in Egypt.

By Kenya Sinclair (CALIFORNIA NETWORK)

A Christian charity and watchdog group reported Coptic Christians in Egypt have become the latest victims of radical Islamists. LOS ANGELES, CA (Catholic Online) - According to International Christian Concern (ICC), the village of Manshiet El-Naghamish was attacked by ... continue reading


BIZARRE: Israel unveils jar with curious figure - but what's he thinking about? Watch

Image of What's he thinking about?

By Marshall Connolly (CALIFORNIA NETWORK)

An unusual jar has made its debut in Israel. The formerly-shattered clay vessel is topped with a figurine that looks curiously like "The Thinker." LOS ANGELES, CA (California Network) -- "An ancient clay vessel has been presented to the world by the Israeli Antiques ... continue reading


INSIDE THE TERROR: Aleppo airstrike leaves doctors desperate to save trapped children Watch

Image of Airstrikes had hospital staff scrambling to safe babies from incubators (Aljazeera).

By Kenya Sinclair (CALIFORNIA NETWORK)

Air raids have been conducted in Syria for months but one of the most recent strikes hit a hospital, leaving doctors scrambling to save babies trapped in incubators. LOS ANGELES, CA (Catholic Online) - According to Aljazeera, the Syrian Observatory for Human Rights ... continue reading


Divine justice or horrible tragedy? ISIS Cub of the Caliphate accidentally kills his family when suicide vest detonates Watch

Image of ISIS continues to use Cubs of the Caliphate to carry out the less savory jobs.

By Kenya Sinclair (CALIFORNIA NETWORK)

A teenager recruited by ISIS, said to belong to the "Cubs of the Caliphate," killed his entire family by mistake. LOS ANGELES, CA (Catholic Online) - According to Iraq News, a local source told Alsumaria News that the teen was a Cub of the Caliphate, children raised ... continue reading


TOUGH CLASS: The one class these children take to determine if they live or die Watch

Image of

By Marshall Connolly (CALIFORNIA NETWORK)

As children return home to their villages in northern Iraq, they are expected to take a very important class. How they do in that class will determine if they live or die. LOS ANGELES, CA (California Network) - No class in the world is as serious as the one offered to ... continue reading


'We are so happy' - Catholics meet to celebrate Mass first time in two years Watch

Image of Catholics got to celebrate Mass at the Mart Shoomy Assyrian church (not pictured).

By Kenya Sinclair (CALIFORNIA NETWORK)

As ISIS is cleared from Christian cities in the Middle East, the faithful are finally able to reconvene for Mass. LOS ANGELES, CA (Catholic Online) - Late last month, Christians were able to celebrate their first Mass in a <a ... continue reading


'For generations, life was normal there' - ISIS doubles executions in Mosul Watch

Image of The battle for Mosul rages.

By Kenya Sinclair (CALIFORNIA NETWORK)

In the city of Mosul, ISIS has been struggling to maintain its hold. LOS ANGELES, CA (Catholic Online) - Iraqi forces have been clearing bombs and other traps as they make their way through Mosul and its surrounding cities.Terrorists are getting antsy and desperate, ... continue reading


Join us in a prayer for peace - Assad bombs kindergarten killing six children (WARNING: GRAPHIC IMAGES) Watch

Image of Six children were killed in the attack (Reuters).

By Kenya Sinclair (CALIFORNIA NETWORK)

In the Syrian rebel-held city of Harasta, children were slaughtered by a bombing believed to have been deployed by President Bashar al-Assad. LOS ANGELES, CA (Catholic Online) - At a nursery school in Harasta, children played on indoor playground equipment, pushed ... continue reading


ISIS leader Al-Baghdadi may be captured in Mosul, orders men to fight to the death Watch

Image of Abu Al Baghdadi has ordered his men to fight to the death, as he is trapped in the city with them.

By Marshall Connolly (CALIFORNIA NETWORK)

Abu Bakr Al-Baghdadi is ordering his men to fight to the death in Mosul. Suicide bombers and lone wolves have been encouraged to attack. It's the kind of orders that desperate leaders issue. Baghdadi is thought to be in Mosul himself. LOS ANGELES, CA (California ... continue reading


A powerful king, a fleet of royal ships, and - pottery? Take a look into one of the most powerful pharaoh's tombs Watch

Image of Images of war boats preparing to attack were discovered alongside a great pharaoh's tomb (Josef Wegner).

By Kenya Sinclair (CALIFORNIA NETWORK)

Archaeologists are hard at work to uncover the secrets of ancient tombs across Egypt - but what they just discovered may have great implications. LOS ANGELES, CA (Catholic Online) - A 3,800-year-old tomb in Egypt is still spilling secrets as over 120 images adorning ... continue reading


All Middle East News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

Daily Readings

Reading 1, Isaiah 30:19-21, 23-26
19 Yes, people of Zion living in Jerusalem, you will weep no more. He ... Read More

Psalm, Psalms 147:1-2, 3-4, 5-6
1 Alleluia! Praise Yahweh -- it is good to sing psalms to our God -- how ... Read More

Gospel, Matthew 9:35--10:1, 6-8
35 Jesus made a tour through all the towns and villages, teaching in ... Read More

Saint of the Day

Saint of the Day for December 3rd, 2016 Image

St. Francis Xavier
December 3: St. Francis Xavier was a Navarrese-Basque Roman ... Read More