Iraq's Oil Exports Could 'Rock" World Markets

Iraq’s Flood Of ‘Cheap Oil’ Could Rock World Markets -- Washington Times

Nation hopes to exceed Saudi Arabia

The U.S. is not the only nation experiencing a renaissance in oil production.

Sidelined for two decades by war, sanctions and political instability, Iraq passed a critical milestone last year by producing 3 million barrels a day of crude oil for the first time since 1990, before the Persian Gulf War, reaching 3.4 million barrels a day by December. Given its access to vast reserves at low costs, Baghdad is poised to play a pivotal role in determining whether the world’s growing thirst for oil drives up fuel prices to debilitating levels in coming years.

“Iraq has a potential as a game-changer” in the volatile global oil market, said Maria van der Hoeven, executive director of the Paris-based International Energy Agency (IEA). Already, she noted, Iraq has moved up to be the world’s third-largest oil exporter and is now on a path to be much more, becoming a “strategic source of world oil supply” in the years ahead. Iraq even has hopes of supplanting Saudi Arabia as the globe’s biggest oil producer.

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Update: Iraq oil exports rise to 2.359 million barrels per day in January -- Business Recorder

My Comment: It is amazing that even with all the violence, Iraq's oil exports continue to grow. I guess everyone needs to make money.

The Politics Of Iraq's Oil Fields

Iraq’s oil minister said Exxon Mobil, the first major oil company to sign an agreement with the KRG, had been given an ultimatum to choose between its oilfields in the south or Kurdish blocks in the north. (Reuters)

Exxon Mobil, BP Face Off In Iraq-Kurd Oil Conflict -- Christian Science Monitor

BP and Exxon Mobil have taken opposite sides in the escalating conflict over oil between the Iraqi central government and the Iraqi Kurds, Alic writes.

BP Plc (NYSE: BP) and Exxon Mobil Corp. (NYSE: XOM) are caught on opposite sides of the front line of the oil war between the Iraqi central government and the Iraqi Kurds, with Baghdad talks with BP over a deal in disputed Kirkuk and warns Exxon about working with the Kurds.

On 28 January, the Iraqi Oil Minister Abdul Kareem al-Luaibi again threatened to cancel Exxon’s contract in the massive West Qurna-1 oil field in southern Iraq if it refuses to stop dealing separately with the Kurds in Northern Iraq.

“We can’t allow Exxon to step over the constitution. It can’t continue to work in both places at the same time; they have to choose to work either in Iraq or in Kurdistan. We are waiting for a final answer in the coming few days,” the minister said in a statement.

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More News On Iraq's Oil Industry

With or without Exxon, Iraq Kurds strive for energy autonomy -- Reuters
Iraqi Kurds woo more oil majors in contest with Baghdad -- Reuters
Kurds to Truck Crude to Turkey Again in a Week, Minister Says -- Bloomberg Businessweek
Iraqi Kurds 'illegally' exporting oil: Shahristani -- AFP
New disagreement flares up between Iraqi government, Kurdistan Region -- Press TV
Baghdad’s threats fail to curb demand for Kurdish oil -- Al Arabiya
Exxon Mobil weighs politically charged decision on Iraq oilfields -- Dallas Business Journal
Exxon's Iraq Strategy: Is a Bird in the Hand Worth More than Two in the Bush? -- Jared Anderson, Aol Energy

Why Iraq Is Important For Global Oil Output

Iraq Could Become World's Second Biggest Oil Exporter -- The Guardian

IEA report says Iraq could soon be responsible for nearly half of all anticipated growth in global oil output.

Iraq could become the world's second-largest oil exporter within two decades and double its output by 2020, a major study has found.

The International Energy Agency said Iraq can overtake Russia for exports and be responsible for nearly half of all anticipated growth in global output.

But the country's government must overcome internal disputes over oil rights with the autonomous Kurdish region in the north and increase current investment from $9bn (£5.6bn) in 2011 to $25bn a year on average for the rest of the decade, the authors warned.

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My Comment:I guess this explains why Iraq made this purchase today. Iraq has the reserves and  willing partners to participate in developing it oilfields .... but .... as the Guardian points out it also has a history of political instability and violence ... a history that is continuing even today.