Frustrated Iraqi and U.S. officials say insurgents in recent months have displayed an impressive capacity to cripple Iraq's most vital infrastructure.
"What they're doing is focusing efforts on intelligent attacks on infrastructure, especially oil and electricity," said a senior U.S. diplomat, who spoke on condition of anonymity. "The number of attacks is down, but the effectiveness of the attacks is up significantly."
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The biggest hit was on the national treasury. Almost the entire federal budget is generated by exports of crude oil, and, according to the Brookings Institution in Washington, revenue from oil exports in November dropped by nearly $700 million, almost 36 percent, from the previous month. The number of attacks on pipelines and other oil and gas infrastructure in November reached 30, almost tripling from October.
According to the State Department, exports rebounded slightly in December, but after attacks on pipelines in the northern and southern oil fields, early January exports skidded below even the November level, to fewer than 1 million barrels a day — less than half the current capacity.
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