Why Are Some Oil Refineries Illegal?

From federal laws standardising minimum ethanol content to national production caps imposed by OPEC, the oil and gas industry is strictly regulated. As a result, the operation of illegal refineries doesn't fly under the radar. It's an issue the Kurdistan Region of Iraq is currently facing, with officials asserting that illegal refineries operating in the province of Erbil pose a serious threat to public and environmental health.

“These illegal refineries have affected water in most areas and have had direct consequences to the environment as well,” asserts Awaz Hamid Afandi, a legal representative for Kurdistan Parliament’s Health and Environment Commission.

Iraqi Kurdistan burdened with hundreds of illegal refineries

There are currently around 200 makeshift refineries operating in Erbil, with most undermining the safety and environmental standards enforced in the Kurdistan Region of Iraq. The impact isn't going unnoticed, with water and soil pollution emerging as major issues for local farmers.

“In some areas, refinery pollution has affected the land in a way that it is now no longer suitable for agriculture," says Awaz Hamid Afandi.

To combat the illegal refineries Awaz Hamid Afandi is calling for the formation of a committee that will actively enforce laws and shut down non-compliant plants. So far Erbil has shut down over 50 illegal refineries, with Mayor Nabaz Abdulhamid warning that enforcement will only get tighter.

Iraqi Kurdistan isn't the only region facing illegal refineries, with the Nigerian Federal Government also struggling to control illicit operations in the Niger Delta. It's an issue that's largely stemmed from unemployment, with illegal refineries offering much-needed cash to locals. As well as providing jobs, illegal refineries often fly under the radar as they help meet national demand, which legal refineries alone can't achieve.

Public health concerns swirling around illegal refineries in Nigeria

While some people claim that illegal refineries are a key part of the national economy, they're also causing major public health concerns, with cities like Port Harcourt often inundated with black smoke.

“The black soot settles on everything and finds its way into the corners of living rooms no matter how hard people try to stop it," says National Public Relations Officer, Mr. Fortune Obi. "Food items in Port Harcourt markets are as well not spared from getting mixed with this deadly soot that is ever present everywhere."

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