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Iraq could double oil output with security
 SHARM EL-SHEIKH, Egypt - Iraqi officials believe they can double their daily oil output quickly if a new government improves security, US Treasury Secretary John Snow said on Monday. Snow spoke to reporters travelling with him after a private meeting with Sinan Al Shabibi, Iraqs central bank governor, about conditions in Iraq now that a new national unity government is in place. The governor indicated he thought it was well within reason to think that with security, and the investment that would come with security, Iraq would have daily production through the pipeline on the order of 3 to 3.5 million (barrels) and that could be achieved quickly, said Snow.Snow said Iraqs daily production was running at around 1.6 million barrels. Snow said it was heartening that Iraq finally had a government in place under Prime Minister Nuri Al Maliki with a cabinet that includes Shiites, minority Sunnis and Kurds and that it is committed to combating violence. He said the countrys prospects hinge on its success. The framework has now been put in place, but that framework can only produce good economic results when the missing ingredient -- security -- is in place, Snow said. Security is now everything in terms of the path forward. Snow and Shabibi were in the Red Sea resort city for talks on Sunday among members of the Broader Middle East and North Africa (BMENA) group that aims to promote greater regulatory integration and development in the region. The two held a separate meeting on Monday. Iraqs newly named finance minister, Bayan Jabor, was not in Egypt for the discussions. Snow declined to comment when asked about reports that Jabor was disliked by US officials who felt that Jabor, a member of a powerful Iraqi Shiite political group, had failed to rein in Shiite militias while he was interior minister. I dont know him, Snow said, adding that Shabibi had described Jabor as a personal friend who had considerable business experience. I look forward to meeting him soon, Snow said, but added that he was unsure when that might happen. While he and Shabibi did not discuss a timeline within which Iraq needs to establish increased security, Snow said it needed to happen soon to benefit the Iraqi economy. The next six months will be the time for this government to come together, show what it can accomplish, take charge of the security issue, Snow said, so that Iraq is seen as a safer investment site. With security will come investments, with security will come much better performance of the electricity sector, which had been badly hurt by saboteurs. With security will come investment in oil and much higher oil output, Snow said.
Posted by: Steve White 2006-05-23 |
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