An oil tanker is docked at the Al Basrah Oil Terminal in the Persian Gulf 30 miles off the coast of Iraq. Workers of the Southern Oil Company from Basrah man the platform and ensure the tankers receive the oil they came for. When this tanker receives it load the red water line will be submerged leaving only the black part of the hull above water. Photo by Spc. Darryl L. Montgomery

Eighty percent of Iraq’s gross domestic product is pumped through pipelines and onto tankers at the Al Basrah Oil Terminal 30 miles off the coast of Iraq in the Persian Gulf.

The ABOT is a vital part of Iraq’s economy, and it is the job of the United States Sailors and Coast Guardsmen stationed there to keep it safe, according to Cmdr. Thomas Shultz, chief of staff, Commander, Task Group Iraqi Maritime.

“The Al Basrah Oil Terminal is the main Iraqi oil terminal for off-loading oil from Iraq. It accounts for approximately 80 percent of their GDP on a daily basis, so it is a key part of their economic structure,” the San Diego, resident said. “It is something that has to stay open and continue working day in and day out for the Iraqi economy to keep on moving.”

Four tankers simultaneously dock at the platform, while Iraq’s oil is pumped into the ships.

According to Shultz, the terminal receives an average of six tankers per week and pumps around 1.5 million barrels of oil a day.

“That’s quite a bit of oil that is going into these tankers on a daily basis,” he said. “They will take the oil back to all different types of countries; from the far east to the Americas, and Europe. Tankers from all over the world are coming here.”

“The Iraqi military will eventually take over our mission of providing security, so, our main mission now is to train them to be ready for that day,” said Chief Petty Officer Stephen Leas, operations specialist chief of the destroyer USS Decatur. “We are here to support them while they get on their feet.”

“When something happens out here, we make sure (the Iraqi naval forces) know about it. We clear everything through them before we take action to correct the issue,” Leas, a Victorville, Calif., native said.

“There was an attack that was attempted back in 2004, and luckily the security forces at that time were able to hold off that attack,” Shultz added.

The southern platform of the Al Basrah Oil Terminal located 30 miles of the coast of Iraq in the Persian Gulf. The terminal is responsible of 80 percent of Iraq's gross domestic product on a daily basis and is essential to the success of Iraq's economy. United States Navy and Coast Guard personnel stationed on the platform train the Iraqi naval forces to prepare them to take over the mission of security on the platform. Photo by Spc. Darryl L. Montgomery

On the platform, Sailors and Coast Guardsmen patrol every minute of the day to maintain situational awareness and ensure any threats that come up are dealt with immediately. Iraqi sailors and marines also help provide security on the platform.

On the waters surrounding the ABOT, U.S. Navy ships and Iraqi patrol boats can be seen patrolling to ensure no unauthorized water craft breech the security perimeter.

In addition to the military forces providing security, about 100 workers from the Southern Oil Company, based in Basrah, operate the valves ensuring the oil makes its way to the tankers, Shultz said.

Shultz said he enjoys his job on the platform.

“It’s very interesting, different than anything folks normally have a chance to do,” he said. “People that come here are interested. It’s a real mission. You’re protecting something that is helping the Iraqi people and the nation as a whole, so people get a lot out of conducting this mission.”

DVIDS
Story by Spc. Darryl L. Montgomery

Here’s a compelling piece by James Pethokoukis at the Capital Commerce blog on the U.S. News & World Report site.

With oil prices continuing to plunge—and they may have a lot further to go—I’ve started wondering about this “what if” scenario: Where would oil prices be today had we abandoned Iraq to civil war and al Qaeda? What if President Bush had announced on Jan. 10, 2007, that instead of surging U.S. troops under the command of General Patraeus, he was ordering their withdrawal? Imagine if Iraq had descended in complete chaos and terror and genocide. Somalia or Rwanda on the Tigris and Euphrates, I guess.

I agree with Pethokoukis. The prospect of dramatic instability in Iraq and the region would push oil prices well into the stratosphere. Oil is down 20% from its peak and it may fall even further. There are two main reasons for that, Iraqi stability and the Republican drive to drill now. Neither are actually adding oil supply, but the spike in prices was not just about supply and demand. The spike was about the future and investor fears. Calm those fears, even with added supply five years out, and prices drop.