Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Trumponomics Stock Market 2018 - The Manchurian President (1/2) - 21st Jul 18
The Death of Japan's Real Estate Dream - 21st Jul 18
SMIGGLE Amazing Mega Shopping Haul, Pencil Cases, Smigglets and Giant Back Packs! - 21st Jul 18
Cayton Bay Beach Caravan Park Holiday - What's it Like? - 21st Jul 18
Gold Stocks Investment Wanes - 20th Jul 18
Diversifying Your Stock Investing Strategies is Smart Investing - 20th Jul 18
Custom Global Stock Market Indexes May Be Sounding Alarms - 20th Jul 18
S&P 500 Just 2% Below Record High, But There's More Stock Market Uncertainty - 19th Jul 18
Stock Market Technical Picture - 19th Jul 18
Gold Market Signal vs. Noise - 19th Jul 18
Don’t Get Too Bullish on Gold - 19th Jul 18
Bitcoin Price Rallies to Upper Channel – What Next? - 19th Jul 18
Trump Manchurian President Embarrasses Putin By Farcically Blowing his Russian Agent Cover - 19th Jul 18
The Fonzie–Ponzi Theory of Government Debt: An Update - 19th Jul 18
Will the Fed’s Interest Rate Tightening Trigger Another Financial Crisis? - 18th Jul 18
Stock Market Investor “Buy the Dip” Mentality is Still Strong, Which is Bullish for Stocks - 18th Jul 18
Stock Market Longer-Term Charts Show Incredible Potential - 18th Jul 18
A Better Yield Curve for Predicting the Stock Market is Bullish - 18th Jul 18
U.S. Stock Market Cycles Update - 18th Jul 18
Cayton Bay Hoseasons Caravan Park Holiday Summer 2018 Review - 18th Jul 18
What Did Crude Oil - Platinum Link Tell Us Last Week? - 17th Jul 18
Gold And The Elusive Chase For Profits - 17th Jul 18
Crude Oil May Not Find Support Above $60 This Time - 17th Jul 18
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

5 Countries Most Plagued by Crude Oil Theft

Commodities / Crude Oil Jul 09, 2014 - 05:05 PM GMT

By: OilPrice_Com

Commodities

Nigeria

As much as 400,000 barrels of oil a day are stolen in Nigeria. This equates to losses of $1.7 billion a month for Africa's new largest economy. This represents 7.7 percent of its GDP vanishing, or more than the country spends on education and healthcare. These numbers paint a harsh picture about the inability of the Nigerian government, and the multinational oil companies in the Niger Delta, to do anything about this rampant theft.


Shell executives have railed against the futility of trying to remove illegal taps from the hundreds of miles of pipelines they have in Nigeria. Philip Mshelbila, Shell's head of communications in Nigeria, pointed to a sophisticated organization of people that have been working for years to steal oil from official pipelines. The company is now divesting its portfolio of assets in Nigeria. (Given this striking news, it seems odd that Nigerian oil producer Seplat says it sees no theft in its operations whatsoever.)

With oil theft hitting record levels in 2013, the G8 has been reminded of its 2000 pledge to help Nigeria solve this crippling problem. However, as the Global Financial Initiative points out, "stolen Nigerian crude oil is transported on internationally registered vessels, sold to international buyers, processed by international oil refineries and paid for using international bank accounts." With one group of thieves admitting to profits of nearly $7,000 a day from their illicit activities, it will take some doing to stop them.

Mexico

In the notoriously secretive government of President Enrique Peña Nieto, it is rare to see a senior official publicly admit that a particular crime is up. Last summer, Carlos Morales, the then head of Pemex's Exploration and Production subsidiary admitted that fuel theft was growing 30 percent annually in Mexico, for a total theft of 5,000 to 10,000 barrels per day. Given that authorities found 2,614 illegal taps in 2013, including close to 600 in November and December alone – compared to around 1,500 in 2012 -- Morales might have underestimated the situation.

The staggering 1,548 percent jump in these illicit siphons from 2000 to 2013 has been attributed to powerful drug cartels like the Zetas realizing the potential of the black gold being pumped through territory they control. Fleets of tankers are now being stolen as they rumble across states like Tamaulipas, where Mexican press report the Zetas and the Gulf Cartel have distribution operations that rival those of Pemex itself

Iraq

Even if we set aside the attractive claim that the U.S. invasion of Iraq was the biggest oil heist of all time, Baghdad has a problem on its hands. Oil smuggling was institutionalized in the days of Saddam Hussein; one U.S. Senate estimate is that the Baath regime pocketed $21.3 billion from the UN Food For Oil program.

Today, it is difficult to estimate just how much oil is being smuggled out of Iraq, as the country's metering system is behind by a number of years.

However, there have been substantiated reports of complex networks taking thousands of barrels right from the refineries and selling them illegally to Iran and Syria. In the chaos left over by the Iraq War, smugglers and terrorist elements have swooped in.

Russia

Vladimir Putin is an ambitious man. He is seeking to secure Russia's energy future through landmark deals with China and Central Asia. To meet the export requirements of those deals, he has ordered Russia's oil producers to reach an annual production of 535 million tons of oil by 2020. For that to happen, he will have to better secure Transneft's pipeline network of over 50,000 kilometers.

This past April, Transneft threatened to shut down the oil supply to Ukraine, saying that oil worth $63 million dollars had been stolen from its PrikarpatZapadtrans pipeline system heading to the beleaguered country. However, Transneft has been facing more serious threats from organized crime in fractious regions like Dagestan where 27,000 tons of oil was stolen in 2009.

Indonesia

The state of oil smuggling in Indonesia might seem insignificant when compared to Nigeria, at just 2,000-3,000 barrels per day. However, the government seems to have only awoken to the issue after a South Sumatra pipeline explosion in October 2012 killed at least eight people, and injured dozens. The explosion was caused by one of the hundreds of taps that proliferate in the district of Bayung Lencir alone.

Since then, Jakarta says it has cracked down but oil firms remain unimpressed. National oil giant PT Pertamina shut down one of its main pipelines, Tempino-Plaju, in July 2013. It reported losses of 17,500 barrels of oil within the first week of the pipeline's exploration.

Chevron has also had to take matters into its own hands, running off teams of thieves in Jambi Province. The South Sumatra chief for Indonesia's Special Task Force for Upstream Oil and Gas Business Activities has lambasted the government, saying that its inaction has allowed oil thieves to act with more confidence.

Source: http://oilprice.com/Energy/Energy-General/These-Are-The-5-Countries-Most-Plagued-by-Oil-Theft.html

By Chris Dalby of Oilprice.com

© 2014 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules