MONGABAY.COM
Mongabay.com seeks to raise interest in and appreciation of wild lands and wildlife, while examining the impact of emerging trends in climate, technology, economics, and finance on conservation and development (more)
WEEKLY NEWSLETTER
|
|
Iran
Index
Iraq attacked Iranian ports, the oil terminal at Khark (then
the main export teminal for crude oil, also cited as Kharg) Island
and, beginning in 1984, tankers shuttling between Khark and Sirri
islands in the Persian Gulf. The heavy damage to refineries and
pipelines, factories, and industrial sites hurt oil production but
did not significantly slow the export of oil until 1986; between
1982 and 1986, Iran produced 2.3 million barrels per day
(bpd--see Glossary) on average (see
table 5, Appendix). The combined effects
of decreased oil production and falling oil prices, however,
created an economic crisis and a shortage of foreign exchange by
1986. The destruction in 1980 of the important Abadan refinery
(which produced an average of 628,000 bpd), the bombing of
refineries and shuttle tankers, and the continued embargo on
purchases of Iranian oil by Japan, the United States, and France
contributed to the crisis. By November 1987, Iranian oil exports
were estimated at 1 million bpd, down from an estimated 1.9 million
bpd the previous month.
The Iraqi strategy of interrupting Iran's export supply line
dated back to February 1984, when Iraq attacked tankers shuttling
between Khark and Sirri islands. The terminal and cargo handling
jetties on Khark Island were hit, reducing the island's export
capacity from 6.5 million bpd to 2.5 million bpd within 3 months.
This new tactic did not halt Iranian oil exports, but it did
decrease them. As a consequence of lower export earnings, the new
budgets showed deficits in fiscal years 1985 and 1986.
After the bombings of Khark Island, Iran developed Sirri Island
as an alternate terminal. Operations began on Sirri Island in
February 1985. Iraq attacked the refinery there on August 12, 1986,
temporarily disrupting Iran's oil exports, and again in the fall of
1986, this time inflicting damage from which Iran took longer to
recover.
As a consequence of the early 1984 bombings, insurance rates
for tankers in the Gulf increased. The increase prompted Iran to
extend special incentives to tankers to compensate for the risk
involved. During the Iraqi attacks, Iran's main crude oil customer,
Japan, banned its tankers from the Khark-Sirri shuttle. After Iran
began giving preferential treatment to certain customers, Japan
resumed its shipments in July 1984.
The August 1986 attacks on Sirri Island caused oil exports to
fall to about one-third of their normal volume (from 1.6 million
bpd to 600,000 bpd). An effort was made to develop Larak Island as
a loading point, but monsoon winds temporarily closed Abu al
Bukush, Larak Island's main oil terminal, in September 1986. Iraqi
attacks on Larak Island's chief remaining oil export terminal in
November and December 1986 further damaged it. By November 1987,
Larak Island had recovered and had become Iran's main export point
because of its distance from Iraq's air bases and because of its
air defense system.
The oil export terminal at Lavan Island, which for years had
exported 200,000 bpd, was also severely damaged in an attack in
September 1986. The success of this attack made it clear that Iraq
was gradually destroying Iran's export industry. By the end of
1986, the Iraqis had bombed Khark, Sirri, and Larak islands, as
well as the shuttle tankers to Sirri and Larak; thirteen tankers
had been damaged in missile attacks in August 1986 alone. The war
also postponed the completion (projected for 1989) of a large
petrochemical plant at Bandar-e Khomeini (formerly known as Bandar
Shahpur, but renamed after the Revolution), an Iranian-Japanese
venture.
Data as of December 1987
Iraq's attack on Iran in September 1980 provided the new
Iranian government with an external scapegoat to divert attention
from its own economic mismanagement. The war created economic
dislocation, decreased industrial and petroleum development, and
caused further deterioration of the agricultural sector, which had
already suffered from the flight of landlords in 1979 and 1980.
Oil Exports
Iraq attacked Iranian ports, the oil terminal at Khark (then
the main export teminal for crude oil, also cited as Kharg) Island
and, beginning in 1984, tankers shuttling between Khark and Sirri
islands in the Persian Gulf. The heavy damage to refineries and
pipelines, factories, and industrial sites hurt oil production but
did not significantly slow the export of oil until 1986; between
1982 and 1986, Iran produced 2.3 million barrels per day
(bpd--see Glossary) on average (see
table 5, Appendix). The combined effects
of decreased oil production and falling oil prices, however,
created an economic crisis and a shortage of foreign exchange by
1986. The destruction in 1980 of the important Abadan refinery
(which produced an average of 628,000 bpd), the bombing of
refineries and shuttle tankers, and the continued embargo on
purchases of Iranian oil by Japan, the United States, and France
contributed to the crisis. By November 1987, Iranian oil exports
were estimated at 1 million bpd, down from an estimated 1.9 million
bpd the previous month.
The Iraqi strategy of interrupting Iran's export supply line
dated back to February 1984, when Iraq attacked tankers shuttling
between Khark and Sirri islands. The terminal and cargo handling
jetties on Khark Island were hit, reducing the island's export
capacity from 6.5 million bpd to 2.5 million bpd within 3 months.
This new tactic did not halt Iranian oil exports, but it did
decrease them. As a consequence of lower export earnings, the new
budgets showed deficits in fiscal years 1985 and 1986.
After the bombings of Khark Island, Iran developed Sirri Island
as an alternate terminal. Operations began on Sirri Island in
February 1985. Iraq attacked the refinery there on August 12, 1986,
temporarily disrupting Iran's oil exports, and again in the fall of
1986, this time inflicting damage from which Iran took longer to
recover.
As a consequence of the early 1984 bombings, insurance rates
for tankers in the Gulf increased. The increase prompted Iran to
extend special incentives to tankers to compensate for the risk
involved. During the Iraqi attacks, Iran's main crude oil customer,
Japan, banned its tankers from the Khark-Sirri shuttle. After Iran
began giving preferential treatment to certain customers, Japan
resumed its shipments in July 1984.
The August 1986 attacks on Sirri Island caused oil exports to
fall to about one-third of their normal volume (from 1.6 million
bpd to 600,000 bpd). An effort was made to develop Larak Island as
a loading point, but monsoon winds temporarily closed Abu al
Bukush, Larak Island's main oil terminal, in September 1986. Iraqi
attacks on Larak Island's chief remaining oil export terminal in
November and December 1986 further damaged it. By November 1987,
Larak Island had recovered and had become Iran's main export point
because of its distance from Iraq's air bases and because of its
air defense system.
The oil export terminal at Lavan Island, which for years had
exported 200,000 bpd, was also severely damaged in an attack in
September 1986. The success of this attack made it clear that Iraq
was gradually destroying Iran's export industry. By the end of
1986, the Iraqis had bombed Khark, Sirri, and Larak islands, as
well as the shuttle tankers to Sirri and Larak; thirteen tankers
had been damaged in missile attacks in August 1986 alone. The war
also postponed the completion (projected for 1989) of a large
petrochemical plant at Bandar-e Khomeini (formerly known as Bandar
Shahpur, but renamed after the Revolution), an Iranian-Japanese
venture.
Data as of December 1987
|
|