Security & Supply Chain: ISIS Threatens Global Supply Chains
by Sterling J. Scott, Marketing Communications Coordinator, MHI | @mhi_sterling
Iraq is the seventh-largest producer and fifth-largest exporter of oil in the world and the second-largest exporter in OPEC. The country’s largest oil refinery as well as the capital of Baghdad are under assault as the extremist group, ISIS, advances across Iraq. The Islamic State of Iraq and Syria is the world’s newest terrorist threat, one so dangerous that even al-Qaeda deemed it to be too extreme. ISIS is alleged to be the richest jihadist group in the world with over $2 billion in assets.
The group has captured many key cities across Iraq and Syria, captured a chemical weapons stockpile leftover from Saddam Hussein’s regime, and is currently battling Iraqi security forces for control of the Baiji oil refinery. A new report from Securing America’s Future Energy claims that decreasing Iraq’s oil production by one-third would eliminate global spare capacity. Oil prices have soared worldwide to over $114 a barrel and fears of shortages are spreading in the region. If ISIS is able to take control of Iraq’s oil production or even a significant portion of it, the group will have seized a measure of geopolitical power in the region and the world that no other extremist organization has.
Businesses worldwide should develop an understanding of how the developments in Iraq may affect their supply chains so that they may implement supply chain solutions to prepare for rising energy, shipping, and transportation costs.
To discover solutions for your supply chain and connect with the companies that can provide the tools, systems, and expertise to implement them, visit www.mhi.org.
