U.S. officials have shifted from simply bombing oil fields controlled by Islamic State to targeting energy infrastructure along the production chain, from processing to storage to transportation, Amos Hochstein, the State Department's energy envoy, said in an interview on Friday. "This is very easy oil to extract. You don't need to be a genius to do it," he said. "But we're moving them from the 20th century to the 17th, 18th century." That has increased the cost to Islamic State of producing each barrel of oil, and has lengthened the amount of time it takes to get a barrel of oil to market, cutting into its profit margins, he said. Alongside taxes, ransoms and trading in antiquities, oil has been a major fundraiser for Islamic State operations, with U.S. defense officials estimating that it made about $47 million per month from oil sales prior to October 2015. The group is likely earning roughly a third of what it was from oil sales before October 2015, Hochstein said. U.S. officials have debated whether to destroy energy infrastructure in Islamic State-controlled territory given concerns it would be harder for local populations to recover once the group leaves, Hochstein said.
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