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CNN Live At Daybreak

The Hopes of Millions: Iraq's Precious Oil

Aired January 15, 2004 - 06:14   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: On to Iraq now, one of the most important aspects of reconstruction is the oil industry. It's the region's lifeblood. Right now 63 projects to restore Iraq's oil program are going on in northern Iraq.
Our Satinder Bindra is live -- are you live in Baghdad or Kirkuk -- Satinder?

SATINDER BINDRA, CNN CORRESPONDENT: Carol, I'm live from Baghdad. But I've just got back from Kirkuk where I've seen one of these oil projects in operation. I should say Kirkuk has 40 percent of Iraq's total oil wells. It's also estimated that 7 percent of the world's oil reserves are based here. So in one sense, Kirkuk is the golden goose of the Iraqi economy, which explains why so much attention is being lavished on it.

(BEGIN VIDEOTAPE)

SATINDER BINDRA, CNN CORRESPONDENT (voice-over): The hopes of millions of Iraqis are tied to the leaping flames of these oil fields in northern Iraq. For decades, oil has sustained this country's economy. But now with most of the national infrastructure shattered and what may be 50 percent unemployment, the financial role of oil is becoming even more critical.

BILL GRANEY, U.S. CORPS OF ENGINEERS: I think a good number of people know what a valuable resource it is for them and for their future.

BINDRA: Bill Graney has a very important job, coaxing as much oil as possible from beneath Iraq and setting its oil industry back on track. Millions of dollars of equipment were looted after the war. The rest, says Graney, is obsolete. But with so much oil here, he's optimistic.

(on camera): Iraq has the world's second largest reserves of oil. Almost 40 percent of that wealth is here in Kirkuk. There's so much oil in these parts that this flame, which locals call the eternal flame, has been burning, according to legend, for hundreds of years.

(voice-over): Northern Iraqi oil is rich in salt and water. Not a problem, say U.S. contractors. They quickly set up this equipment to wash out impurities from 450,000 barrels of crude a day.

Work is also under way to transport Kirkuk's oil via pipeline to Turkey. On this day, it's rained so much Bill Graney's crews can't weld these pipes together. Aware that many Iraqis have deep suspicions about U.S. control of Iraqi oil, Graney handles his local counterparts with kid gloves.

GRANEY: If you treat people as equals and that we're all in it together, and that is exactly what we tried to do here. I think it's worked.

BINDRA: Graney dreams of a day when all Iraqis can share their oil wealth.

GRANEY: Every individual got a little bit of something out of the resources of their country that there would be more pride in maintaining it and more of a future.

BINDRA: A future in which Graney says it will be Iraqis, not Americans, who will control this precious resource.

(END VIDEOTAPE)

Carol, for all the progress here, challenges do remain. American forces have to deal with a lot of oil tests (ph) at these pipelines. And recently, U.S. forces shot dead seven Iraqis who they say were attempting to steal oil. Also in the past several weeks, there have been numerous cases of sabotage at these pipelines.

Back to you.

COSTELLO: Satinder Bindra reporting live from Baghdad this morning.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired January 15, 2004 - 06:14   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: On to Iraq now, one of the most important aspects of reconstruction is the oil industry. It's the region's lifeblood. Right now 63 projects to restore Iraq's oil program are going on in northern Iraq.
Our Satinder Bindra is live -- are you live in Baghdad or Kirkuk -- Satinder?

SATINDER BINDRA, CNN CORRESPONDENT: Carol, I'm live from Baghdad. But I've just got back from Kirkuk where I've seen one of these oil projects in operation. I should say Kirkuk has 40 percent of Iraq's total oil wells. It's also estimated that 7 percent of the world's oil reserves are based here. So in one sense, Kirkuk is the golden goose of the Iraqi economy, which explains why so much attention is being lavished on it.

(BEGIN VIDEOTAPE)

SATINDER BINDRA, CNN CORRESPONDENT (voice-over): The hopes of millions of Iraqis are tied to the leaping flames of these oil fields in northern Iraq. For decades, oil has sustained this country's economy. But now with most of the national infrastructure shattered and what may be 50 percent unemployment, the financial role of oil is becoming even more critical.

BILL GRANEY, U.S. CORPS OF ENGINEERS: I think a good number of people know what a valuable resource it is for them and for their future.

BINDRA: Bill Graney has a very important job, coaxing as much oil as possible from beneath Iraq and setting its oil industry back on track. Millions of dollars of equipment were looted after the war. The rest, says Graney, is obsolete. But with so much oil here, he's optimistic.

(on camera): Iraq has the world's second largest reserves of oil. Almost 40 percent of that wealth is here in Kirkuk. There's so much oil in these parts that this flame, which locals call the eternal flame, has been burning, according to legend, for hundreds of years.

(voice-over): Northern Iraqi oil is rich in salt and water. Not a problem, say U.S. contractors. They quickly set up this equipment to wash out impurities from 450,000 barrels of crude a day.

Work is also under way to transport Kirkuk's oil via pipeline to Turkey. On this day, it's rained so much Bill Graney's crews can't weld these pipes together. Aware that many Iraqis have deep suspicions about U.S. control of Iraqi oil, Graney handles his local counterparts with kid gloves.

GRANEY: If you treat people as equals and that we're all in it together, and that is exactly what we tried to do here. I think it's worked.

BINDRA: Graney dreams of a day when all Iraqis can share their oil wealth.

GRANEY: Every individual got a little bit of something out of the resources of their country that there would be more pride in maintaining it and more of a future.

BINDRA: A future in which Graney says it will be Iraqis, not Americans, who will control this precious resource.

(END VIDEOTAPE)

Carol, for all the progress here, challenges do remain. American forces have to deal with a lot of oil tests (ph) at these pipelines. And recently, U.S. forces shot dead seven Iraqis who they say were attempting to steal oil. Also in the past several weeks, there have been numerous cases of sabotage at these pipelines.

Back to you.

COSTELLO: Satinder Bindra reporting live from Baghdad this morning.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com