Is Saudi Arabia stealing Iraqi crude via the IPSA pipeline?

FogerRox

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Fri Apr-27-07 06:22 PM
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Is Saudi Arabia stealing Iraqi crude via the IPSA pipeline?

Is Saudi Arabia stealing Iraqi oil via the IPSA ?

All sources and cites available->> Cross posted from http://rdanafox.blogspot.com/2007/04/is-saudi-arabia-stealing-iraqi-oil-via.html

I recently became interested in the theory that the Iraqi Saudi pipeline (IPSA) was being used by the Kingdom of Saudi Arabia to pipe Iraqi crude to the KSA to be sold as Arabian light crude. I found a good summation here. I think its fair to say that somebody at a refinery would spot the chemical differences between Basrah light & Arabian light from the start, even though they are of similar gravity and sulfur content.

Chang-Tai Hsieh and Enrico Moretti, of the University of California, Berkeley,......
As they point out, Iraqi oil, such as Basra Light, is a close substitute for Arabian Light.

Refiners in India, China, South Korea, Taiwan and Japan see Basrah Light as a good alternative to Asia�s mainstay imports such as Saudi Arabia�s Arab Light

I then thought, what would prevent the KSA from piping Iraqi crude to its own refineries for domestic use, and can I find anything on the web concerning the IPSA. The IPSA appeared to be closed according to a number of sources, including the US State Dept, and the US Energy Information Administration. The State Dept presentation is dated January 25th, 2006 and it seems to contradict a number of other sources dated earlier that suggest the KSA portion of the IPSA was converted to Natural gas. What I do find strange is the exact same sentence is found at different websites. This of course infers a single source in the viral sense of the internet, though I was not able to track down what I thought might be the initial source.

In June 2003, Thamir Ghadban said that he hoped Iraq would be able to use the IPSA line again. However, the Saudis have stated that they are not willing to do this, having converted the line to carry natural gas to the Red Sea industrial city of Yanbu for domestic use.

Sources: the EIA, Senator Lugar's website, and World News Network.

Only Gerald Butt @ Alexander's, could be quoted differently

Saudi Arabia has said the section of the pipeline within the kingdom is now being used to transport natural gas and has ruled out its re-use as a crude conduit from Iraq.

Much of Saudi Arabia's natural gas production seems to come from the eastern part of the country, the offshore fields in the Persian Gulf and the NG associated with the Ghawar oil field.

Oil Fields are dark NG fields are Geren & Red.

The IPSA pipeline was intended to be a way for Iraq to export oil via the Red Sea port of Mu'ajiz, near Yanbu, during the Iraqi Iranian War. Yandu & is a major industrial city utilizing NG for energy. Considering the Saudi push to expand domestic NG production and use, it seems to make sense KSA would use the IPSA to move NG west to the Red Sea. Except that the IPSA doesn't appear to be the route of choice. If the IPSA is being used for NG, it could be fed from the Trans Arabian/Jordon pipeline, though a connection bewteen the 2 would have to have been built.

In conclusion its not at all clear in my mind if the IPSA is being used, or what its being used for. With Iraqi oil production still below pre war levels one could argue that Iraqi oil is being pumped by the Bush Cheney faction in Iraq, to Saudi Arabia, for domestic use. As a favor to the Saudi's. On the other hand the Saudi effort to use NG domestically to free up crude for export could be argued as a model that fits into the assumed management scheme in the KSA, in light of declining crude reserves.

Saudi oil map showing pipelines here

http://www.judicialwatch.org/SAOilMap.pdf

This shows the Iraqi end of the IPSA