Posted on 01/31/2003 5:26:29 PM PST by blam
Kuwait to close its oilfields if fighting escalates
By Jack Fairweather in Kuwait
(Filed: 31/01/2003)
Kuwait will turn off its oil taps, among the most productive in the world, if full-blown war breaks out against Iraq, said officials yesterday, threatening to sharply increase petroleum prices.
Burgan oil field, which was rebuilt after its destruction by Iraqi forces occupying Kuwait during the Gulf War
Kuwaiti officials have prepared an evacuation of the country's oilfields, many of which are near the border with Iraq where 110,000 US troops are gathering for military action. An official at the state-owned oil company, Kuwait Petroleum Company, said: "Iraq still has its short-range missile capacity intact and may use them against Kuwait.
"We cannot put our employees' lives in danger and will have to leave the oilfields if a war between America and Iraq escalates."
A missile strike on the oilfields of Kuwait, one of the largest producers with three per cent of the world market, would have huge effects on the price of oil.
During the first Gulf war oil prices more than doubled to $40 per barrel, and claims have been made that should Iraq target the regional oil industry this time round prices could leap as high as $80 per barrel.
Insurance companies are also threatening to declare the Gulf area a "no go area" in the event of war, meaning that many tankers will not travel to the region for fear of being attacked, further reducing supplies.Saudi Arabia has promised to make up shortfalls if Iraqi oil production ceases. But if Kuwait stops pumping, and with Venezuela's oil industry still not back to full output after a strike, the Saudis might struggle to do so.
Kuwaiti fears seemed to be confirmed by Tariq Aziz, the Iraqi deputy prime minister, who said Kuwait would be part of any battlefield created by a US attack.
I'm suspicious they're already using Hollywood screen writers.
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