Posted on 11/20/2015 4:47:14 AM PST by thackney
A combination of successful airstrikes by Western governments and drop in the oil price are helping to cut off a much-needed revenue stream for the so-called Islamic State (ISIS) terrorist group, an energy analyst says.
"The damage is being done, which is why we have seen ISIS oil production go from 110,000 barrels a day to 40,000 barrels a day," Amrita Sen, chief oil analyst at Energy Aspects, told CNBC Thursday.
Following Friday's terrorist attacks in Paris and confirmation that a bomb brought down a Russian airliner in the Sinai desert a couple of weeks ago -- attacks both pinned on ISIS -- the U.S., France and Russia have stepped up airstrikes on the militant group's positions in Iraq and Syria.
The key targets for airstrikes have been ISIS' main sources of revenue and operations, including oilfields, trucks used to transport oil, munitions depots, command centers and trade routes (used mainly to transport arms and oil). Earlier this week, the U.S. said it had destroyed over 100 fuel trucks in an airstrike.
ISIS controls more than 60 percent of Syria's oil production capacity and about 10 percent of Iraq's oil production capacity, Reuters estimates. In an October 2014 report, it estimated that the group had an overall production capacity of up to 120,000 barrels per day, representing a profit of $2 million to $4 million per day.
Since last year, however, the price of oil on global markets tumbled from a high of $114 a barrel last June to around $44 for a barrel of benchmark Brent crude and around $40 for U.S. crude, further impacting one of ISIS' main revenue streams.
"At the peak, ISIS had about 100,000-110,000 barrels a day under control but this was back in the summer of 2014. Now, and with particularly all the airstrikes, it's less than 50,000 barrels per day – we think that it's about 40,000 per day."
"Some of that they probably have to use internally for their own consumption and they're probably exporting some but again, with oil trading around $40 a barrel, they're probably not getting as much revenue as they were last summer."
YOUR BROWSER IS NOT SUPPORTED. Please upgrade to watch video. A combination of successful airstrikes by Western governments and drop in the oil price are helping to cut off a much-needed revenue stream for the so-called Islamic State (ISIS) terrorist group, an energy analyst says.
"The damage is being done, which is why we have seen ISIS oil production go from 110,000 barrels a day to 40,000 barrels a day," Amrita Sen, chief oil analyst at Energy Aspects, told CNBC Thursday.
Following Friday's terrorist attacks in Paris and confirmation that a bomb brought down a Russian airliner in the Sinai desert a couple of weeks ago -- attacks both pinned on ISIS -- the U.S., France and Russia have stepped up airstrikes on the militant group's positions in Iraq and Syria.
The key targets for airstrikes have been ISIS' main sources of revenue and operations, including oilfields, trucks used to transport oil, munitions depots, command centers and trade routes (used mainly to transport arms and oil). Earlier this week, the U.S. said it had destroyed over 100 fuel trucks in an airstrike.
An airstrike by a U.S. led coaltion warplane explodes on an ISIL position on November 10, 2015 near the town of Hole, Rojava, Syria. Getty Images An airstrike by a U.S. led coaltion warplane explodes on an ISIL position on November 10, 2015 near the town of Hole, Rojava, Syria. ISIS controls more than 60 percent of Syria's oil production capacity and about 10 percent of Iraq's oil production capacity, Reuters estimates. In an October 2014 report, it estimated that the group had an overall production capacity of up to 120,000 barrels per day, representing a profit of $2 million to $4 million per day.
Read MoreThe key ISIS targets allies want to destroy
Since last year, however, the price of oil on global markets tumbled from a high of $114 a barrel last June to around $44 for a barrel of benchmark Brent crude and around $40 for U.S. crude, further impacting one of ISIS' main revenue streams.
"At the peak, ISIS had about 100,000-110,000 barrels a day under control but this was back in the summer of 2014. Now, and with particularly all the airstrikes, it's less than 50,000 barrels per day – we think that it's about 40,000 per day."
"Some of that they probably have to use internally for their own consumption and they're probably exporting some but again, with oil trading around $40 a barrel, they're probably not getting as much revenue as they were last summer."
Read MoreA new front in the war on ISIS: Cut off its cash
There have been reports that ISIS has sold its oil on the black market, and even back to the Syrian regime led by Bashar Assad that it is fighting in Syria's civil war. There have also been reports that ISIS' oil has been smuggled into Turkey, a country also opposed to ISIS.
Sen believed that it was plausible that Syria had received ISIS'-sourced oil and possible that Turkey had received oil from ISIS. "Some oil was smuggled into Turkey -- not necessarily that Turkey's buying it – but it just gets mingled with other oil being imported there."
Lol, administration propaganda piece? Russia and Putin are having no effect.
Why are oil prices staying down? I know OPEC production has not been reduced, but one would think that extra production would be needed to sustain low prices in the face of production losses.
Because global supply grew more than global demand. The US has begun to taper down the production rate from lack of investment over that past year. OPEC, Russia are producing more. Oil stocks are still high.
Global Petroleum and Other Liquids
http://www.eia.gov/forecasts/steo/report/global_oil.cfm
Global petroleum and other liquids production continues to outpace consumption, leading to inventory builds throughout the forecast period. Global oil inventory builds in the third quarter of 2015 averaged 1.6 million b/d, down from 2.0 million b/d in the second quarter, which had the highest level of inventory builds since the fourth quarter of 2008. The pace of inventory builds is expected to slow in the fourth quarter to roughly 1.2 million b/d. In 2016, inventory builds are expected to slow further to an average of 0.4 million b/d as global liquids output is expected to be unchanged from 2015. The 0.4 million b/d reduction in projected 2016 inventory builds from last month's STEO mostly reflects lower forecast oil production in Canada and the United States.
more at link, including charts
Who are the workers running the oil production facilities? Surely these barbarians know nothing about performing the perplexities of producing oil or any other useful job or activity. Are the workers hostages or were they forced to join ISIS? Any of their number could drive the transport trucks but to actually know how to keep an oil facility going? Curious....
I've read they force the original workers to stay, or they kill, torture, rape their families.
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