Prometheus 6   

A fly in the Vasoline

Oil Experts See Long-Term Risks to Iraq Reserves
By JEFF GERTH

As the Bush administration spends hundreds of millions of dollars to repair the pipes and pumps above ground that carry Iraq's oil, it has not addressed serious problems with Iraq's underground oil reservoirs, which American and Iraqi experts say could severely limit the amount of oil those fields produce.

In northern Iraq, the large but aging Kirkuk field suffers from too much water seeping into its oil deposits, the experts say, and similar problems are evident in the sprawling oil fields in southern Iraq.

Experts familiar with Iraqi's oil industry have said that years of poor management have damaged the fields, and some warn that the current drive to rapidly return the fields to prewar capacity runs the risk of reducing their productivity in the long run.

"We are losing a lot of oil," said Issam al-Chalabi, Iraq's former oil minister. He said it "is the consensus of all the petroleum engineers" involved in the Iraqi industry that maximizing oil production may be detrimental to the reservoirs.

A 2000 United Nations report on the Kirkuk field said "the possibility of irreversible damage to the reservoir of this supergiant field is now imminent."

American officials acknowledge the underground problems, but figuring out how to address them is a quandary for the United States. The Bush administration and the Iraqis are banking on oil revenues to help pay for Iraq's reconstruction, and American officials say that aggressively managing the reservoirs is crucial to keeping oil and revenue flowing. But so far, American officials have steered clear of delving below ground, partly, they say, out of fear of adding to suspicion in the Arab world that the United States invaded Iraq to control its oil.