According to Rai al-Yum, one of the most prominent Arab-language news sites, Kurdish and Syrian smugglers are selling petroleum from areas under Islamic State (ISIS) control to Israeli buyers. Citing Russian media, Rai al-Yum reported on November 30 that oil pumped from two oil fields in Deir ez-Zor in eastern Syria are transported by truck convoys to Zakho, a Kurdish-held city close to the Iraqi-Turkish border. It is there that oil brokers go to make their purchases.

The report says that the oil is then transported to Silopi – a town in southeastern Turkey. The oil is labelled there of Kurdish origin. According to Rai al-Yum, an Israeli broker it identified as “Dr. Fried” then transfers the oil to ports in Turkey and thence to consumers. Israel is chief among them, according to the report.

ISIS combatants at Baijii oil field. YouTube screenshot

In August 2015, the Financial Times reported that 75 percent of Israel’s petroleum supplies originate in Iraqi Kurdistan. One third of it comes through Jihan, a Turkish port. “Israel has become, one way or another, the main buyer for ISIS oil,” said a senior European oil industry executive to the Arab-language newspaper Al-Araby Al-Jadeed. “Without them, most of the oil would pass between Iraq, Syria and Turkey,” he added, “but even these three countries would not buy all the oil, if Israel would not buy it.” Some countries refrain from buying the smuggled ISIS oil, despite the cheap price, because it is the chief source of income for the Islamic State.

Even the Islamic State’s enemies trade for oil. The ISIS oil operation continues to grow despite efforts by the U.S.-led coalition and Russia. ISIS’s oil company recruits skilled workers, including engineers and managers. In an October 2015 report, the Financial Times calculated the Islamic State’s oil production at about 34,000-40,000 barrels per day. Sold for $20 and $45 a barrel, ISIS thus earns about $1.5 million every day. Controlling oil production has been central to the Islamic State and its ambitions to found a caliphate in Damascus.

Fairchild Republic A-10 Thunderbolt 

As soon as ISIS controlled the Ajil and Allas oil fields in Kirkuk province in northeastern Iraq, in 2013 its engineers and managers began setting up operations and shipping out oil. Hundreds of trucks came from Kirkuk and Mosul to transport the oil. An average of 150 trucks were filled daily, while each contains about $10,000-worth of oil. However, ISIS lost the fields to the Iraqi army in April 2015 but made an estimated $450 million from them in the 10 months it controlled the area.

The ISIS-controlled oil fields produce fuel needed for its forays against the forces of Syria’s President Bashr al-Assad, and to sell to its enemies. The entire northern tier of Syria is dependent on ISIS oil.

In May 2015, US special forces killed Fathi Ben Awn Ben Jildi Murad al-Tunisi (aka Abu Sayyaf) who had been the lead for ISIS oil operations. His death yielded useful intelligence on ISIS oil operations. Documents found with him showed the ISIS runs a meticulous operation that carefully accounts revenues. The management of the wells is conducted by Amniyat, the Islamic State’s brutal secret police, who ensure revenues go where they should.

Lockheed AC-130H gunship

However, the Islamic State’s oil heyday may not last. Levels of production in Syria’s eastern oil fields is dropping, and military requirements mean there is less oil to sell to customers. And a renewed focus on oil fields by coalition forces also means a drop in oil production. For example, on November 23, the Defense Department announced it had destroyed 283 tanker trucks used to transport oil from fields. The attack was carried out on November 21 near Deir el-Zour and Al-Hasakah by  A-10 attack planes and AC-130 gunships. This followed a similar assault on November 15 that destroyed 116 tankers as part of the air campaign, dubbed Operation Tidal Wave II. The U.S. has said the Islamic State derives approximately half of its income from petroleum sales.