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How Iraq will face a drop in oil prices?
15-12-2014 09:38 PM
BAGHDAD / Acer Jabbar
Iraq is seeking to increase its oil production in order to support the financial budget and fill many of the gaps in services, investment and security sectors, and with heightened concerns resulting from the decline in world oil prices.
Expenses of non-core
He says the Iraqi government adviser for economic affairs, the appearance of Mohammed Saleh, said that a barrel of oil in Iraq has lost a third of its gains, 'where the federal budget for 2014 has lost between 25% to 27% of revenue, compared to the budgets of Iraq's past, and this is very effective for the financial revenues of the State usually turn toward public spending '.
Saleh added that the government is moving at the moment towards stopping the non-core expenditures, and put an end to the financial waste, especially in relation to the purchase of cars for officials and high salaries for state officials.
Saleh explains that reduce costs, 'will not affects social expenditures, they maintain the social security of the country, which is parallel with the importance of national security.'
Saleh and more than that, 'for the face of declining oil prices, is expected to increase oil exports to reach at the end of 2015 to 4.0001 million barrels per day.'
He says financial expert, Majid picture, the decline or stability of oil prices at $ 70 in 2015, meaning a decline between 30 to 31% of the financial supplier for Iraq. But, according to the picture, can compensate for this loss by increasing production.
Suri He continues that 'If we calculated that the sale price of a barrel of oil will be $ 65 in 2015, under the export 3.3 million barrels per day, the financial oil imports will be $ 72 billion by year's end. However, if the sale price by $ 70 a barrel, the oil imports up to about $ 83 billion. ' He goes on the picture: 'So, compared to the large decline in world prices, we can say that the barrel price of $ 70 is Bullish for Iraq'.
As a member of the Finance Committee in the House of Representatives, Majida al-Tamimi, she believes that the 'building proactive budget was wrong action, because the government believes that imports will not be fixed, but will rise in the next year. And thus most affected by the drop in oil prices, is the capital expenditures related to infrastructure. '
In addition, an economist, Wahab Fuad indicates, that 'the government has a lot of expenses on military operations waged by the security forces against militants organize Daash, what lost them a lot of money that was earmarked for investment projects in the budget of 2014'. He explains that 'the budget year 2015 will also be exposed to the fiscal deficit could reach billions of dollars in the event of failure to take the Iraqi government austerity measures may include the cancellation of some giant investment projects, as well as to reduce the level of expenditures for purchases of government departments and institutions.'
The Advisor of the Ministry of Oil, and Walid Abu loaf, says that 'the existing proposal now specifically to the ministry and general government is the adoption of a price difference far below the global outlook, to spare Iraq any shock from falling oil prices.' He explains that he 'is expected to be the adoption rate of between 60 to $ 70 a barrel in the next budget, in addition to the focus on increasing production from oil fields in the south and center, and the commitment of Iraq's Kurdistan region to hand over 250 thousand barrels per day.'
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15-12-2014 09:38 PM
BAGHDAD / Acer Jabbar
Iraq is seeking to increase its oil production in order to support the financial budget and fill many of the gaps in services, investment and security sectors, and with heightened concerns resulting from the decline in world oil prices.
Expenses of non-core
He says the Iraqi government adviser for economic affairs, the appearance of Mohammed Saleh, said that a barrel of oil in Iraq has lost a third of its gains, 'where the federal budget for 2014 has lost between 25% to 27% of revenue, compared to the budgets of Iraq's past, and this is very effective for the financial revenues of the State usually turn toward public spending '.
Saleh added that the government is moving at the moment towards stopping the non-core expenditures, and put an end to the financial waste, especially in relation to the purchase of cars for officials and high salaries for state officials.
Saleh explains that reduce costs, 'will not affects social expenditures, they maintain the social security of the country, which is parallel with the importance of national security.'
Saleh and more than that, 'for the face of declining oil prices, is expected to increase oil exports to reach at the end of 2015 to 4.0001 million barrels per day.'
He says financial expert, Majid picture, the decline or stability of oil prices at $ 70 in 2015, meaning a decline between 30 to 31% of the financial supplier for Iraq. But, according to the picture, can compensate for this loss by increasing production.
Suri He continues that 'If we calculated that the sale price of a barrel of oil will be $ 65 in 2015, under the export 3.3 million barrels per day, the financial oil imports will be $ 72 billion by year's end. However, if the sale price by $ 70 a barrel, the oil imports up to about $ 83 billion. ' He goes on the picture: 'So, compared to the large decline in world prices, we can say that the barrel price of $ 70 is Bullish for Iraq'.
As a member of the Finance Committee in the House of Representatives, Majida al-Tamimi, she believes that the 'building proactive budget was wrong action, because the government believes that imports will not be fixed, but will rise in the next year. And thus most affected by the drop in oil prices, is the capital expenditures related to infrastructure. '
In addition, an economist, Wahab Fuad indicates, that 'the government has a lot of expenses on military operations waged by the security forces against militants organize Daash, what lost them a lot of money that was earmarked for investment projects in the budget of 2014'. He explains that 'the budget year 2015 will also be exposed to the fiscal deficit could reach billions of dollars in the event of failure to take the Iraqi government austerity measures may include the cancellation of some giant investment projects, as well as to reduce the level of expenditures for purchases of government departments and institutions.'
The Advisor of the Ministry of Oil, and Walid Abu loaf, says that 'the existing proposal now specifically to the ministry and general government is the adoption of a price difference far below the global outlook, to spare Iraq any shock from falling oil prices.' He explains that he 'is expected to be the adoption rate of between 60 to $ 70 a barrel in the next budget, in addition to the focus on increasing production from oil fields in the south and center, and the commitment of Iraq's Kurdistan region to hand over 250 thousand barrels per day.'
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