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Page added on October 29, 2017

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Turns Out, the US Does Have That Iraqi Oil

Public Policy

Before America’s Twitter-loving president made it to the Oval Office, a recurring theme was that the U.S. should have gotten hold of Iraq’s oil after toppling Saddam Hussein. There’s this:

And this:

And don’t forget this:

Well here’s the thing. America has Iraqi oil. And the loser in all this turns out to be Donald Trump’s favorite Mideast nation.

OK, U.S. refiners are buying the stuff, rather than “taking” it — whatever that might mean — but the volume of Iraqi oil entering the U.S. has been on the rise since the middle of 2015 and has continued to increase this year, despite OPEC’s output cuts. Imports of Iraqi crude have averaged 600,000 barrels a day so far this year, according to data from the the Energy Information Administration at the Department of Energy. That’s up by 50 percent from 2016 and is almost three times as much as U.S. refiners bought from Iraq in 2015. The flow through American ports has exceeded 1 million barrels a day three times since the start of June in weekly EIA data.

Iraq Ascending
No impact from OPEC cuts on U.S. oil imports from Iraq – on the rise since mid-2015
Sources: Bloomberg, Energy Information Administration
Note: Four-week moving average

Meanwhile, purchases of crude from Saudi Arabia, have been going in the opposite direction. The Saudis have made good on the promise oil minister Khalid Al Falih made after the May OPEC meeting to “markedly” reduce deliveries to the world’s biggest consumer. “Exports to the U.S. will drop measurably,” he told reporters after chairing a meeting between the group and other major producers in Vienna on May 25.

Saudi Slipping

And they have. After averaging close to 1.2 million barrels a day in the first six months of 2017, they have fallen to around half that level since the start of September. True, a couple of big storms in the Gulf of Mexico have hit individual weekly numbers, but they bounced back after the storms passed and delayed cargoes were able to discharge.

The net result of all this?

U.S. crude oil imports from Iraq have exceeded those from Saudi Arabia in 3 of the past 4 weeks. That would have seemed unthinkable as recently as last year. At that time, flows from Saudi Arabia were exceeding those from Iraq by somewhere between half and one million barrels a day.

Reversal of Fortune
U.S. refiners are now importing more crude from Iraq than from Saudi Arabia
Sources: Bloomberg, Energy Information Administration
Note: Four-week moving average

It is easy to see this solely as the effect of OPEC output cuts and Saudi Arabia’s decision to target the highly visible U.S. market since June. But a look at the charts shows that the shift began well before the advent of OPEC’s current policy.

Part of the reason may lie in Iraq’s 2015 decision to split its exports into two distinct grades, based on the quality of its crude exports. The new Basrah Heavy grade is well suited to sophisticated U.S. refineries that can turn the thick, treacly crude into gasoline and diesel and it has found a ready market there. Saudi Arabia, in contrast, has focused exports on its lighter, more valuable grades, keeping the heavier ones to feed its own refineries.

As I wrote here Saudi Arabia is already losing market share to its supposed OPEC and non-OPEC partners in key oil markets in Asia, where it is seeing Iraq, Iran and Russia catching or passing its own sales. Now, it seems, its place in the U.S. market is also slipping away. Its fightback will almost certainly come — though it may be delayed until at least 2019, now that Crown Prince Mohammed bin Salman backed the extension of the group’s output cuts.

As for the U.S., it is now getting around a sixth of Iraq’s oil exports. Not enough for the president, perhaps, but it has the twin advantages of being legal and a lot cheaper in terms of both blood and treasure, than trying to “take” it.

bloomberg



23 Comments on "Turns Out, the US Does Have That Iraqi Oil"

  1. MASTERMIND on Sun, 29th Oct 2017 9:52 am 

    Looks like that False Flag 911 attack is paying off brilliantly…

  2. onlooker on Sun, 29th Oct 2017 10:07 am 

    False Flag 911—- MM, after stating this nobody can call you a deluded American anymore. Why do people assume so many of us are deluded.

  3. Davy on Sun, 29th Oct 2017 10:30 am 

    Not deluded onlooker just addicted to conspiracies without a clear pattern to reality. Lots of revisions and fantasies but without proper relationships. It’s not all wrong and it’s not all right. It definitely is part of an agenda and more often than not extremist. IOW, it generally fits the same patterns as those the conspiracy addicts are attacking. If you have an agenda then your consiracy should be suspect.

  4. Cloggie on Sun, 29th Oct 2017 10:32 am 

    False Flag 911—- MM, after stating this nobody can call you a deluded American anymore.

    Yes, but are you sure that MM is not ironic and in reality supports the act and that he just admires the “cunning”?

    Looks like that False Flag 911 attack is paying off brilliantly…

    Really? So the US is buying oil, just like they did before the war. In between are a tremendous cost of $3T or more…

    http://www.washingtonpost.com/wp-dyn/content/article/2010/09/03/AR2010090302200.html

    … as well as turning Iraq into a Iranian client state.

    The US and its neocons in particular wanted to take over the ME.

    https://www.youtube.com/watch?v=ZRlatDWqh0o

    Nothing of the sort happened.

  5. Cloggie on Sun, 29th Oct 2017 10:36 am 

    It definitely is part of an agenda and more often than not extremist.

    As if you don’t have an agenda: covering up every obvious crime of these cretins in Washington.

    You admitted that the official 9/11 story stinks, but you are not interested in delving any deeper (“not enough information” as if you are really interested in more information).

    Everybody who denies that WTC7 was brought down by controlled demolition is a lying POS. And once you admit that to be the truth the entire tale of 19 Arabs with box-cutters collapses with the speed of gravity.

  6. Davy on Sun, 29th Oct 2017 11:01 am 

    Sure clogged please reference where I am part
    of the cover up. Dementia man 2 do you remember when I told you there is more to worry about than the 911 conspiracy. It does not interest me so I am not going to invest my valuable time to it. My agenda is to neuter your extremist agenda. You are now part
    of my agenda along with mad kat. I will not give your ass a rest either. Anything you can and will say will be used against you if it is part of your extremist agenda. You are board enemy number 1 shared with mad kat. Other than that my agenda is doom and prep. Got it dementia man.

  7. onlooker on Sun, 29th Oct 2017 11:01 am 

    What I meant to say by deluded,is in response to those who assert that almost all of us Americans are blinded and brainwashed by the blanket of false and misleading info coming from official sources. Vouching for 911 is a good example that we are not. That may have been true 10 or so years ago but I think not now. Many of us Americans have woken up. Problem is so much conflicing info exists on the Internet, that yes it is so easy to practice confirmation bias especially if you have an agenda. For example, I do believe Makati has an agenda to paint the US empire as the source of all that is evil in this world. That in my opinion is not true. On the other hand however, it is NOT a conspiracy theory or anti-American to note that the US has acted with insatiable gusto to extend and deepen its influence around the world for many decades. The information about this is extensive and quite clear. I also, do feel that a Deep State exists and its the power behind the throne made up of the wealthies families and institutions like the Vatican, the Banking cartel and the English royal family. Money is power. I have no ill will towards any of the normal folks around the world but the ruling elites is a different story.

  8. MASTERMIND on Sun, 29th Oct 2017 11:05 am 

    I know it was a false flag..How do I know. Simple. There were 66 plans that flew off course the year before 911 and all 66 were intercepted by fighter jets with an average of 15 minutes…On average in america one plane goes off course ever two weeks. And we have an air base located five minutes next to the pentagon to protect it from this sort of thing. On 911 four planes flew off course and zero were intercepted. One flew off computerized course for over an hour and half..LOL..The reason was all the planes that were normally ready to intercept were ordered to fly to the east coast that day and do training..So whoever gave that order obviously knew what was going to happen…I mean what are the odds without a fix being in?

  9. MASTERMIND on Sun, 29th Oct 2017 11:11 am 

    Bush could have never got congress to approve another invasion of Iraq after his dad didn’t finish the freaking job…They had to have some sort of false flag happen…Bush knew peak oil was coming his father was head of the CIA and ran an oil company growing up. That’s why daddy bush lives in Houston to this day and flipped the coin at the superbowl last year.. And they got the idea from Operation northwoods.

  10. MASTERMIND on Sun, 29th Oct 2017 11:20 am 

    And for the record Madkat is deluded or insane..Take your pick…I asked him if there was anything good the US has brought to this world. And he said he couldn’t think of one thing…..Just think about that..I mean you have to be totally in denial to not be able to think of one thing…I think it’s obvious he was most likely treated like a second class citizen here because he was a minority. And now that he is back in his homeland its payback time for those he feels who wronged him…Madkat is aware just like everyone else who visits this blog that civilization is in decline. And all he does is play captain obvious every post. He is no different then what Kuntsler does on his blog every week.

  11. Cloggie on Sun, 29th Oct 2017 11:36 am 

    On the other hand however, it is NOT a conspiracy theory or anti-American to note that the US has acted with insatiable gusto to extend and deepen its influence around the world for many decades… I also, do feel that a Deep State exists

    This just in:

    http://www.zerohedge.com/news/2017-10-28/shocking-viral-interview-qatar-confesses-secrets-behind-syrian-war

    Qatar was probably so pissed off by the behavior of KSA lately that it has spilled the beans about the true story of the “Syrian civil war”:

    In an interview with Qatari TV Wednesday, bin Jaber al-Thani revealed that his country, alongside Saudi Arabia, Turkey, and the United States, began shipping weapons to jihadists from the very moment events “first started” (in 2011).

    Al-Thani even likened the covert operation to “hunting prey” – the prey being President Assad and his supporters

    In itself it is no surprise at all for anybody who pays attention, but it is unique that a head of state confirms this.

    So it is impossible to deny it any longer. Remember we are talking about 500,000 dead people; the suffering was enormous and the country nearly completely destroyed.

    And let me make this clear: there is ZERO difference between Assad-Syria and Germany-1939. Germany was a prey for the US, USSR and the war party around Churchill as of mid-thirties and there was no other intention in Washington and Moscow to destroy Europe and divide the loot. Germany was the hunted from the beginning. And when they were finished with the rape they invented the holo-tale to “justify” the rape.

  12. Cloggie on Sun, 29th Oct 2017 11:45 am 

    MM, it was not Bush, it was Cheney who knew in advance what was happening and it was him who issued the stand-down order. Cheney was also very much aware in 2001 about peak-oil:

    http://www.resilience.org/stories/2004-05-11/dick-cheney-peak-oil-and-final-count-down/

  13. Cloggie on Sun, 29th Oct 2017 11:58 am 

    https://www.youtube.com/watch?v=poY5BQ49gf0

    Donald Trump on the very day of 9/11 says that “bombs must have been used apart from planes“.

    If DJT really wants to drain the Swamp he should call for a new independent 9/11-investigation. Admittedly a very risky thing to do.

    Perhaps in his second term, if any.

  14. Davy on Sun, 29th Oct 2017 12:01 pm 

    Clogged, you can be sure Eurotardland was involved too. You guys love making money off misery too. Why don’t you go though your extremist WordPress site and see what you come up with. If you truely cared about the truth you would be looking to see what part Europe played in that mess.

  15. Cloggie on Sun, 29th Oct 2017 12:15 pm 

    “Clogged, you can be sure Eurotardland was involved too. ”

    Any evidence? If that was true, the emir would have said that. Remember that France, Germany and Russia refused to participate in the Iraq hunt as well.

    In fact, the French foreign minister Dumas spilled the beans much earlier:

    https://youtu.be/VFHdiw4D7tk

    And yes, the British were involved as well, as always, but not France and Germany.

  16. Cloggie on Sun, 29th Oct 2017 12:20 pm 

    http://www.euronews.com/2017/03/17/the-economic-costs-of-syria-s-civil-war

    Total Syrian damage 255 billion.
    That is a nice damage claim to be paid for by the US, UK, KSA and a few others.

  17. Outcast_Searcher on Sun, 29th Oct 2017 12:50 pm 

    “OK, U.S. refiners are buying the stuff, rather than “taking” it — whatever that might mean”

    The fact that the author even says this says it all, since those are two COMPLETELY different things.

    What’s next, that the US shouldn’t be allowed to buy oil since that would be politically incorrect?

  18. onlooker on Sun, 29th Oct 2017 2:04 pm 

    Yes, let’s not characterize Europe as without any nefarious involvement in 911 especially the aftermath in the form of Rendition program of abducting, detaining and torturing terror suspects. As this following link provides a plethora of information that various countries in Europe were complicit in that including Germany

  19. onlooker on Sun, 29th Oct 2017 2:05 pm 

    Oops forgot link here it is. https://www.therenditionproject.org.uk/documents/eur-complicity.html

  20. Boat on Sun, 29th Oct 2017 2:09 pm 

    North Korea Hit Hard As Coal Exports To China Fall 71%

    https://oilprice.com/Energy/Coal/North-Korea-Hit-Hard-As-Coal-Exports-To-China-Fall-71.html

    The NWO in action.

  21. Cloggie on Sun, 29th Oct 2017 5:02 pm 

    onlooker says Yes, let’s not characterize Europe as without any nefarious involvement in 911 especially the aftermath in the form of Rendition program of abducting, detaining and torturing terror suspects. As this following link provides a plethora of information that various countries in Europe were complicit in that including Germany

    Yes in the aftermath as a CIA vassal, but not in the planning. Italian Ex-President Cossiga said a few months before his death, while suffering from terminal cancer that 9/11 was the work of…

    https://www.theguardian.com/world/2010/aug/18/francesco-cossiga-obituary

    In November 2007, the Corriere della Sera reported that Cossiga had declared that everyone knew that 9/11 had been engineered by the CIA and Mossad with the “help of the Zionist world” to discredit the Arabs.

    The original:

    http://www.corriere.it/politica/07_novembre_30/osama_berlusconi_cossiga_27f4ccee-9f55-11dc-8807-0003ba99c53b.shtml

    mentre tutti gli ambienti democratici d’America e d’Europa, con in prima linea quelli del centrosinistra italiano, sanno ormai bene che il disastroso attentato è stato pianificato e realizzato dalla Cia americana e dal Mossad con l’aiuto del mondo sionista per mettere sotto accusa i Paesi arabi e per indurre le potenze occidentali ad intervenire sia in Iraq sia in Afghanistan.

    But yes onlooker, the whole stinking West is corrupt and needs to be dismantled, like the USSR.

  22. rockman on Mon, 30th Oct 2017 9:41 am 

    And let’s go back and touch on one more misrepresentation: “The new Basrah Heavy grade is well suited to sophisticated U.S. refineries that can turn the thick, treacly crude into gasoline and diesel…”. Our “sophisticated” technology does not turn any heavy crude into gasoline/diesel. Our refineries use decades old tech to turn 32° API BLENDED OIL made of heavy+light oils into motor fuels.

    Basrah heavy is sold, like all low gravity oil, at a discount since it has to be blended with light oil/condensate for the refineries to process. And thanks to the shale boom the US has become a dominate producer of the lighter crudes.

  23. Dredd on Mon, 30th Oct 2017 10:47 am 

    “Collusion” or “conspiracy” theory (Dept. of Justice Conspiracy Theories – 2) ?

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