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The highest rates of oil production and export in 30 years
translation / Abdul Khaliq Ali
As is the case every year, the Iraqi oil production was volatile over the past year. But nevertheless has seen the country huge gains, including higher rates of production and export over the years, and a significant increase in revenue, all of this was the result of efforts of foreign companies operating in southern Iraq, and the new points linking new allowed sales Foreign largest, also thanks to continuing tensions in the Middle East, which has kept on rising oil prices.
Last December ended up declining, where Iraq that month exported an average of 2.35 million barrels per day; any less from November rate of 11%, where the southern oil pipeline was issued rate of 2,022 million barrels in December and is less than November which stood at 2.122 million barrels, also saw the northern pipeline significantly reduced from 426.600 barrels in November to 325.800 in December; been exporting 11 thousand barrels per tanker to Jordan in one day, the reason for the decline for the month of December to two main factors. The first is the bad weather that hit the port of Basra, which has caused delays in berthing tankers and load shipments, second factor is that the Kurds stopped their exports for the second time in 2012, as in the last time, the Kurdistan Regional Government has accused the Baghdad government by refusing to pay dues costs of companies operating there . Was supposed to be the central government to pay the second installment of $ 296.6 million dollars, but failed to do so, and Deputy Prime Minister Hussein Shahristani said that the Kurds do not adhere to their shares of export - and this is true - but the main reason is the ongoing conflict between the parties on authority to sign oil contracts.
In September the parties reach deal new export but soon collapsed, as happened with the deals the previous two, because of the outstanding issues between Baghdad and Erbil as a result, ended up Erd that stop exports in December unless it is to resolve these differences, the more These short-term agreements goes to the failure.
The problem of weather in the south had already hit Iraq for decades and it needs to be significant investment in new infrastructure in order to overcome them, and falls on the Baghdad government to organize the list so, but it has not yet anything on this issue.
In line with the decline in exports, has dropped the price of Iraqi oil also in the past month, in December sold barrels of Iraqi crude at 103.72 dollars, less than 104.32 dollars in November, and that was part of the drop in prices that has lasted for three months as a result , earning Iraq $ 7.551 billion in December, compared with 8.2 billion in November, making it the fourth-lowest monthly rate in 2012.
In December also agreed Iraq and Jordan on a new pipeline linking the fields Iraq's southern port of Aqaba on the Red Sea, at the same time, according to Baghdad that it will increase its exports to Jordan from 10 thousand barrels per day to 15 thousand, this oil is for use Jordan's domestic and it is very important to the local economy of Jordan, he also sell at less than market value in order to sustain the good relations between the two countries.
The plan to extend the pipeline new is part of an attempt Iraqi to reduce its dependence on the port of Basra in the majority of their exports, the conflict between the West and Iran is still at the top of his grades and could cause the spare shipping through the Arabian Gulf, which could lead to strangle the Iraqi economy, and that Baghdad explore other possible export routes.
For the year 2012, has arrived in Iraq to some indicators impressive, the first of it produced, in the month of March, more than 3 million barrels of oil for the first time in thirty years, and in September reached 3.2 million barrels, also saw exports increased significantly , reaching average 2.565 million barrels per day in August, and in the months of October and November rate rose to 2.62 million barrels, the main reason for these large increases were opening stations linking new in the port of Faw in the months of March and April, is still a lack of pumping stations near the coast and to the new pipelines is an issue, for example, can not stations linking work at one time; and despite that their energy amounting to 850 to 900 thousand barrels per day, they do not they can run more than half of this figure is not building new lines, With this, exports rose by 11% and a rate of 2.41 million barrels in 2012 compared to 2011, which averaged 2.16 million barrels.
In addition, the ongoing tensions in the Middle East and North Africa have maintained high prices at 106.20 dollars per barrel of Iraqi crude, an increase from the year 2011, which amounted to $ 105, and the result was higher revenue from 82.968 billion dollars in 2011 to 94.025 billion in 2012.
Future prices for the current year is still uncertain, countries that saw its exports due to internal conflicts such as Libya, have begun to pump more oil, at the same time, caused the sanctions imposed on Iran collapse large in exports, and that there is a conflict within OPEC about increasing production of member countries which may result in a decline in world prices, Iraq plans to continue to produce and export more as possible may suffer from problems as a result, either that Iraq will continue to benefit from higher prices as a result of the problems Iran and other countries, or that his approach may contribute to the collapse.
Iraq is recovering - although slow - from the negative effects of decades of war and sanctions, was in 2012 a banner year, as the country returned to levels oil production in the years eighties of the last century, and in the current year could exceed those numbers, still had a lot of work, especially with regard to infrastructure, before he was able to reach a real capacity, as the war of words between the central government and the Kurdistan Regional Government on oil contracts will continue as well, but will not have a significant impact on production rates because the bulk of the oil exists in the south, however, it is expected to continue Kurdish exports through the northern pipeline in the foreseeable future. The real issue facing Iraq is the global energy market, if prices fall, Baghdad might have to reconsider some of its near-term goals, Iraq has already begun to re-work deals with countries to reduce global strategic goals productivity.
More cuts may backfire Iraq has hurt himself by increasing exports at a time when the market is awash with oil-producing countries other.
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