Luay al-Khatteeb spoke to CNN about the impact of ISIS ' march through northern Iraq , and the militant group 's control of some oil fields . He explained how they used the oil fields to raise funds , and how it could impact global prices . This is an edited version of the conversation . How much of Iraq 's oil market do ISIS control ? ISIS control just a few marginal fields in Iraq 's north , but they are enough to fund the terrorist group 's self-sufficiency . A month ago , the ISIS -- controlled oil market in Iraq was reported to be worth $ 1 million a day . Now , with expansion , further control of oil fields and smuggling routes , the market is believed to be raising at least $ 2 million a day . This could fetch them more than $ 730 million a year , enough to sustain the operation beyond Iraq . ISIS have been battling over Baiji and the refinery is still under siege . However , if ISIS succeed in capturing it , the refinery would be very difficult to operate without capable and technical staff . One important factor for the stability of global markets : ISIS is not yet in the south of Iraq , where the country 's true oil bounty lies . Capturing the southern assets of the country would be mission impossible for the group . The territory is far from fault lines , and is dominated by Shia , which makes dominating the region difficult for the Sunni militant group . What do ISIS do with the oil they get ? ISIS smuggle the crude oil and trade it for cash and refined products , at a reduced price . They also have their own small and rudimentary refineries in Syria . Refined oil is returned to ISIS for selling locally , in Iraq and Syria . ISIS also use the oil in their own warfare . ISIS controls smuggling routes and the crude transported by tankers to Jordan via Anbar province , to Iran via Kurdistan , to Turkey via Mosul , to Syria 's local market and to the Kurdistan region of Iraq , where most of it gets refined locally . Turkey has turned a blind eye to this and may continue to do so until they come under pressure from the West to close down oil black markets in the country 's south . ISIS ' oil will remain limited to these black markets , and the group will have no chance to establish a sophisticated pipeline network . Fixed distribution networks are complex , require investment and can become targets by the Iraqi Army and Kurdish Peshmerga . What is ISIS ' ultimate aim and how does oil wealth play into it ? At present , ISIS are trying to establish a self-sufficient state and a capital in what is known as the `` Sunni triangle '' ( west and north Iraq ) , and oil production will be part of this . They want to be self-sufficient , expand their territorial control , recruit more jihadists -- with focus on extremists with foreign passports -- and extend their operations , to eventually launch attacks on Western countries . ISIS declared its Caliphate by turning Iraq and Syria into a hub to attract extremists . They are aiming to take over the Arabian Peninsula as their epicenter to launch attacks globally . If this happens , they will be in control of a region that holds 60 % of world 's conventional energy reserves and produces 40 % of global oil and gas production . And the only way to do it is by attracting the masses of jihadists and extremists from all over the world to eventually outnumber the locals , which will endanger global security and economies . How is ISIS ' control of some of Iraq 's oil fields impacting the global economy ? In the short to mid-term , the impact will be minimal as Iraq 's south is its dominant producer . However , there are enough rich assets in the midlands and the north part of Iraq that ISIS could reach out to , a potential capacity that could ramp up to a million barrels a day -- from its current 30,000 barrels a day -- should they seize control the oil-rich city of Kirkuk and its surrounding districts . If they succeed in controlling those assets , cash inflow could stretch their empire of terrorism beyond imagination . But so far , ISIS oil trading has remained local with buyers in Jordan , Turkey , Syria and Iran via middlemen network and truck owners . However , the instability created by Iraq effectively being broken up would have a ripple impact , in terms of hindering investment prospect in the country . In turn , that could prevent Iraq from reaching its 2020 target of 9 million barrels of oil production per day , which is three times Iraq 's current oil supply and 10 % of global demand .
Terrorist group ISIS controls some oil fields in North Iraq , which helps fund its activities . The group is using smuggling routes to get crude into nearby countries , and refine it . The refined oil is then sold locally and used to fund ISIS ' warfare and raise money . The impact on global markets has so far been limited as ISIS is not in southern Iraq .