U.S. Faces Question-What to do About All That Iraqi Oil

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http://abclocal.go.com/wpvi/story?section=nation_world&id=4405226

BAGHDAD, Iraq (AP) - July 27, 2006 - Pipelines carrying crude oil through Iraq's unguarded desert suddenly collapse after weeks without disruption - a single bullet puncturing a line, halting Iraq's main source of revenue.

At the same time, daily bloodshed is pushing the country closer to a civil war. These two dynamics at work in Iraq - the quest for prosperity amid an endless struggle for security - tug firmly on Iraq's future and the U.S. involvement here.

Since resuming petroleum exports after the U.S. invasion in 2003, Iraq has struggled for lasting security of its pipelines and refineries. It sits atop the world's third-largest reserves, but saboteurs routinely disrupt the 4,300-mile system of pipelines.

For weeks in June, Iraq exported millions of barrels to Turkey. But during the second week of July, flow to the country's largest refinery in Beiji stopped when pipelines were attacked. Such topsy-turvy progress is symbolic of the delicate balance between oil and security.

The irony, military and U.S. government officials say, is that oil is both the quickest fix to rebuilding Iraq's infrastructure and a source of considerable violence.

More than 250 Oil Ministry officials, workers and security guards have been assassinated since the fall of Saddam Hussein's regime in 2003, according to the ministry.