Oil production and smuggling in the Islamic State
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Oil production and smuggling was the largest source of revenue for the finances of the Islamic State (IS or ISIS)[1][2] in Syria and Iraq until the complete loss of its territory in 2019. Most oil extracted was distributed for use within the Islamic State, but some was also smuggled to surrounding states at below market price.
Oil products, e.g. petrol and mazout, were the backbone of the economy of ISIL-controlled areas, with mazout being the preferred power source for small-scale electricity generators.[2] Not all energy production was provided by oil,[3] and some electric power supply was continued to Syrian government-held areas.[4]
Oil production in the Islamic State developed over time, reaching its peak in 2014.[5] Due to military interventions, IS subsequently lost all of its territory in Syria and Iraq.[5][6]