Gas and Oil Smuggling Black Market Value: $12.75 Billion





Data on the black market in Gas and Oil Smuggling


Shell reports that majority of oil spills in Nigeria due to oil theft

Filed under: Africa, Environmental

Shell Petroleum reported that in 2009, 98 percent of oil spills in the Niger Delta was due to vandalism and attempts at oil theft, with 2 percent of spills due to equipment failure.

Source:  Olusola Bello, “Shell worried by increasing oil theft,” Business Daily, June 17, 2010.

Oil theft activities in Mexico

Filed under: Americas, Environmental

In 2009, an average of 8,432 barrels of oil was stolen each day in Mexico. There were 462 illegal pipeline taps in 2009, compared to 102 illegal taps in 2004.

In 2008, police arrested 528 people for oil theft.

Source:  Chris Hawley, “Stolen oil fueling Mexico’s drug war,” Arizona Republic, May 30, 2010.

Oil smuggling in Iran

Iran losses $1.13 Billion a year to oil smuggling activities within its country, according to country officials.

1.8 billion liters of oil products is smuggled abroad.

Source:  AFP, “Oil smuggling costs Iran ‘billions of dollars’,” Mail and Guardian, June 19, 2006.

Oil smuggling losses in China

Filed under: Asia, Environmental

Between 2002 and 2006, oil thieves drilled into China’s oil pipelines 18,382 times, created losses of $72 Million.

Source: Xin Dingding, Li Jing and Wan Zhihong, “China faces new risk: Attacks on pipelines,” China Daily, January 6, 2010.

Oil diverted in Iraq in 2008

In 2008, the United States Department of State reported that up to 30 percent of refined fuels in Iraq were being diverted to the black market for sale or smuggled out of the country.

Source: Nathan Vardi, “The Energy Underworld,” Forbes, June 11, 2008.

Oil smuggling in Pakistan

Filed under: Asia, Environmental

The Pakistani Governments estimates that it losses between 5 billion to 6 billion Pakistani Rupees ($66 Million) to oil smuggling each year.

Source:  “Govt losses Rs5-6 billion annually as sale of Iranian petrol in Pakistan soars,” Pak Tribune, December 11, 2006.

Red Diesel losses in the United Kingdom

Filed under: Environmental, Europe

Losses from the illegal use and smuggling of red diesel in the United Kingdom is estimated to be about 350 Million Pounds ($560 Million US).

Source: John Baker, “Crackdown on red diesel,” Spalding Today,October 25, 2007.

$912.5 Million of diesel smuggled out of Kuwait each year

According to oil officials in Kuwait, $2.5 Million of diesel a day, or $912.5 Million a year, is smuggled into Iraq from Kuwait.

Source: “Kuwait MP calls to question Oil Minister over fuel smuggling to Iraq,” Alsumaria, September 30, 2009.

17 percent of Iran’s fuel production smuggled out of country

17 percent of Iran’s total fuel production, or 40 million liters (10.6 million gallons) is smuggled out of Iran every day.

Source: “’17 percent of daily fuel production smuggled abroad’,” Press TV, September 26, 2009.

Gas and Oil smuggling in the Philippines

Filed under: Asia, Environmental

The Government of the Philippines losses $682 Million (32.5 Billion Philippine Peso) in tax revenue to gas and oil smuggling in the country.

An estimated 30 to 35 percent of all gasoline and diesel sold in the country comes from oil smuggling.

Source: Amy R. Remo, “Gov’t urged to curb oil smuggling,” Philippine Daily Inquirer, September 20, 2009.

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