Iraq Oil Reserves
Iraq Oil Reserves
Oil reserves in Iraq will be the largest in the world according to recent geological surveys and seismic data. The Iraqi government has stated that new exploration showed Iraq has the world’s largest proven oil reserves, with more than 350 billion barrels. Officially confirmed reserves rank third largest in the world at approximately 143 billion barrels (22.7×10^9 m3). Read more
Iraq could have largest oil reserves in the world
Iraq dramatically increased the official size of its oil reserves yesterday after new data suggested that they could exceed Saudi Arabia’s and be the largest in the world. Read more
Iraq Oil Reserves
Oil reserves in Iraq will be the largest in the world according to recent geological surveys and seismic data. The Iraqi government has stated that new exploration showed Iraq has the world’s largest proven oil reserves, with more than 350 billion barrels. Officially confirmed reserves rank third largest in the world at approximately 143 billion barrels (22.7×10^9 m3).
As a result of military occupation and civil unrest, the official statistics have not been revised since 2001 and are largely based on 2-D seismic data from three decades ago. International geologists and consultants have estimated that unexplored territory may contain vastly larger reserves.
A measure of the uncertainty about Iraq's oil reserves is indicated by the fact that the U.S. Department of Energy (DOE) estimated that Iraq had 112 billion barrels (17.8×10^9 m3), whereas the United States Geological Survey (USGS) estimated it was closer to 78 Gbbl (12.4×10^9 m3) and Iraq's prewar deputy oil minister claimed it might have 300 Gbbl (48×10^9 m3). The source of the uncertainty is that due to decades of war and unrest, much of Iraq oil wells are run down and unkept. Repairs to the wells and oil facilities should make far more oil available economically from the same deposits that are now. In fact, Iraq may prove to be contain the largest extractable deposits of oil in the entire Middle East once this upgrading and facility improvements have advanced.
After more than a decade of sanctions and two Gulf Wars, Iraq’s oil infrastructure needs modernization and investment. Despite a large reconstruction effort, the Iraqi oil industry has not been able to meet hydrocarbon production and export targets. The World Bank estimates that an additional $1 billion per year would need to be invested just to maintain current production. Long-term Iraq reconstruction costs could reach $100-billion or higher, of which more than a third will go to the oil, gas and electricity sectors. Another challenge to Iraq's development of the oil sector is that resources are not evenly divided across sectarian lines. Most known resources are in the Shiite areas of the south and the Kurdish north, with few resources in control of the Sunni population in the center.
In 2006, Iraq's oil production averaged 2.0 million barrels per day (320×10^3 m3/d), down from around 2.6 Mbbl/d (410×10^3 m3/d) of production prior to the coalition invasion in 2003.[3] Iraq's reserve to production ratio is 158 years.
On June 30 and December 11, 2009, the Iraqi ministry of oil awarded contracts to international oil companies for some of Iraq's many oil fields. The winning oil companies enter joint ventures with the Iraqi ministry of oil, and the terms of the awarded contracts include extraction of oil for a fixed fee of circa $1.40 per barrel. The fees will only be paid once a production threshold set by the Iraqi ministry of oil is reached.
Oil fields contracted include the "super-giant" Majnoon Field, Halfaya Field, West Qurna Field and Rumaila Field. The East Baghdad Field, situated in part under Sadr City, did not receive any bids and the Iraqi oil ministry is considering working the field itself. Oil minister Hussein al-Shahristani told Iraqi public television that the increasing oil production "would finance infrastructure projects across Iraq - schools, roads, airports, housing, hospitals". Iraq's oil deposits hold known reserves of 43 billion barrels of crude, as well as large quantities of natural gas.
Iraq could have largest oil reserves in the world
Sonia Verma in Sharm el-Sheikh
Iraq dramatically increased the official size of its oil reserves yesterday after new data suggested that they could exceed Saudi Arabia’s and be the largest in the world.
The Iraqi Deputy Prime Minister told The Times that new exploration showed that his country has the world’s largest proven oil reserves, with as much as 350 billion barrels. The figure is triple the country’s present proven reserves and exceeds that of Saudi Arabia’s estimated 264 billion barrels of oil. BarhamSalih said that the new estimate had been based on recent geological surveys and seismic data compiled by “reputable, international oil companies . . . This is a serious figure from credible sources.”
The Iraqi Government has yet to approve a national oil law that would allow foreign companies to invest. MrSalih said that the delay was damaging Iraq’s ability to profit from oil output, robbing the country of potentially huge revenues. With oil selling for more than $125 dollars a barrel and demand rising, MrSalih is frustrated that Iraq still struggles over the establishment of a regulatory framework. “There is a real debate in the Government and among political leaders about the type of oil management structures we should have. I am for liberalising this sector and allowing the private sector to come in to develop these vast resources.”
BP, Exxon Mobil, Chevron, Royal Dutch Shell and Total have been queuing for rights to exploit Iraqi reserves. MrSalih confirmed that Iraq was negotiating the outlines of two-year deals with some of the companies. He was optimistic that a draft law could be approved in the near future.
“We need to recognise after so many decades of mismanagement of the oil industry that we need to call a spade a spade,” he told a group of delegates at the World Economic Forum in Sharm el-Sheikh. “We can regulate it, but we need private investment to develop Iraq’s production capacities.” He said that Iraq was pumping 2.5 million barrels of oil a day at present, earning about $70 billion (£35.9 billion) in revenue this year.
The price of oil bounced back to record highs yesterday when Opec refused to increase supplies following Saudi Arabia's promise to the US that it would provide an extra 300,000 barrels a day. In New York, the price of light, sweet crude for June delivery rose from $125.92 to US$126.35. In London, Brent crude for July delivery was up 82 cents at $125.81 per barrel.
