Posted on 03/27/2008 3:37:20 AM PDT by maquiladora
LONDON (Reuters) - Oil jumped above $107 on Thursday after saboteurs blew up one of Iraq's two main export pipelines.
The attack on the pipeline in southern Iraq came on the third day of an Iraqi military operation against fighters loyal to Shi'ite cleric Moqtada al-Sadr in the oil port of Basra.
"This morning saboteurs blew up the pipeline transporting crude from Zubair 1 by placing bombs beneath it. The pipeline was severely damaged," a Southern Oil Company official told Reuters.
"We will lose about a third of crude exported through Basra," he said, adding that it would take three days to repair the pipeline if the fire was brought under control.
Iraq exported 1.54 million barrels per day from Basra in February.
U.S. light crude for May delivery rose as high as $107.70 a barrel and it was up $1.30 at $107.20 a barrel by 0958 GMT.
London Brent crude rose $1.19 to $105.18.
"We see events in Iraq as having taken a dangerous turn, with the stability of the southern oil system now starting to become a potential concern," Barclays Capital Research said in a research note.
Explosions could be heard every 10 or 15 minutes in Basra, epicentre of an Iraqi government crackdown on the followers of Sadr.
(Excerpt) Read more at in.reuters.com ...
The Iraqi’s need to step on that bug. But good.
Kill Sadr. Now.
It is past time to do so.
Every time the price of oil starts to go down something happens.
This may really be a big deal.
I’m watching CNBC and the market analysts seem nervous.
They say troops can’t get to the area and there are hundreds more miles of pipelines that could be attacked. Iraqs oil revenues have increased to far more than we are spending on the war and that could simply stop if the insurgents continue with this tactic. Apparently a single IED can take out one of the two main pipelines and they are setting off dozens a day in other places.
It’s too bad that those pipelines were never buried.
As it is now, driving up to an elevated pipeline, placing a bomb under a length of pipe and speeding away just couldn’t be any easier.
I wonder why no one has ever thought to bury those pipelines under berms made of sand. That seems to me burying the pipelines could be a really good “public works” project that would have the additional benefit of reducing the unemployment rate among Iraq’s semi-skilled workers.
Hmmm...
Could there be a shortage of sand in Iraq?
I know nothing about pipeline technology; maybe someone can answer this. Is there an automatic shutdown system for pipelines (triggered by a sudden loss of pressure), or do crews have to shut valves on both sides of the damage?
I think it’s time for the U.S. to start guarding and runnning this pipeline—for a small fee...paid for in oil.
Most major pipelines have automated shutdown valves.
But when pipelines are hundreds of miles long, the valve stations are often 10 to 25 miles apart. A rupture between those still have a lot of volume to lose.
Also, pipeline pressures normally vary with pumping conditions. The sensing of the rupture is more difficult than most would imagine. Sensors 10 miles from the rupture don’t see an immediate change. Typically you trigger the shutdown valves not on a low pressure but on a very fast dropping pressure rate.
Also, these valves at remote locations are rarely operated. Some do partial stroke tests. But to do a complete valve operation test you have to shutdown the pipeline.
I bet there are commanders right now saying privately pretty much you just posted.
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