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Iraq
Can Iraq become world's largest oil producer?
2010-09-29
We haven'tbeen able to go after Saudi Arabian support of jihadis -- and of the jihadi mindset through the financing of Wahhabi mosques and imams around the world -- because the impact on oil production would crash the world economy. Once Iraq and other sources are pumping enough oil to replace Saudi Arabian production, that hindrance evaporates.
[Al Arabiya] Iraq has been grabbing headlines lately, not only because of the uncertainty surrounding the formation of the new government, but also due to the great potential the country holds when it comes to foreign investments, particularly in the oil sector. Not even the delay in passing the hydrocarbon law nor the ongoing disputes with Kurdistan have deterred investments from flowing in.

Iraq has already signed 11 deals with foreign oil companies which will see its production quintuple to about 12 million barrels per day (mbpd) by 2017. Such a boost would threaten Saudi Arabia's status as the world's biggest oil producer, whose current production capacity is estimated at 11 mbpd.

However,
The infamous However...
 Saudi Arabia has already announced plans to increase its production capacity to over 12 mbpd. Going back to Iraq, there has been lots of speculation regarding whether or not the country would be able to meet its ambitious goal in such a short time.

Those who argue that Iraq can increase its production to 12 mbpd base their argument on the fact that Iraq has huge oil reserves, many of which are still undiscovered, estimated at 350 billion barrels. Official figures on the other hand estimate Iraq's proven oil reserves at 115 billion barrels, valued at $9 trillion based on current oil prices.

On the sidelines of the Iraq Future Energy 2010 conference, Dr. Ali Hussain, an oil consultant, argued that another factor is the cost of production of Iraqi oil which is the lowest in the world; not to mention the fact that Iraq has the capabilities to export through a number of countries including Turkey, Syria, Jordan, Saudi Arabia, and Kuwait. Furthermore, Dr. Hussain stresses that Iraq will be able to market and sell its extra production as the International Energy Agency forecasts that demand for oil will grow 23% from current levels to reach 106 mbpd by 2030. In addition to this, Dr. Hussain says: "Iraq needs to make use of its oil wealth in order to rebuild its economy".
Posted by:Fred

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