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New energy strategy estimates triple crude production for Iraq by 2020
16 Jun 2013
From the local media sources, it has been revealed that Iraq is looking forward to adopt a new energy strategy for the nationwide energy supply. It has to be stated that with the increased oil production, the internal energy supply in the country is rising and becoming self-sufficient gradually. It is assumed that the country will be self-sufficient in terms of energy by the year of 2022. Presently, the country is producing 3.5 million barrels per day oil, which would around 4.5 million barrels per day from next year. The country is aiming towards a broader aspect as it has the target to reach 9 million barrels per day by the year of 2020. Though, previously the country had a plan to reach 12 million barrels per day by 2017, which had been criticized as unrealistic by many experts.
Under its new Integrated National Energy Strategy, or INES, Iraq examined low, medium and high production growth scenarios in light of the needs of both Iraq and the world oil market, and has gone for the medium option, said Thamir Ghadhban, top energy adviser to Iraqi Prime Minister Nouri al-Maliki and also chair of the INES committee.
The strategy, which has been under preparation for the last two years in co-operation with the World Bank and consultancy Booz & Co, envisages three scenarios for increasing Iraq’s crude oil production. With so called ‘medium scenario’, Iraq is heading towards its target of 9 million bpd. Clearly the figure is not less and if that comes into the reality, Iraq’s economic and energy sector will start blooming.
Iraq’s crude oil output prediction is sharply different from those given by the International Energy Agency in December when its first energy outlook on Iraq in decades envisaged 6.1mn bpd in 2020. The first scenario of the INES plan takes production to 13mn bpd in 2020, while the third takes production to only 6mn bpd, which is close to the IAE’s prediction. Under the medium growth scenario, it means Iraq will be exporting a hefty 8mn bpd, while 1mn bpd will be fed in local refineries.
So, there are enough doubts about the real achievement of Iraq, though as per planning, everything is looking good and it is the time, when the countrymen should start thinking positively. Iraq has tremendous potential and the country needs to utilize its potential neatly. Poor infrastructure is a big problem for Iraq and for that reason, the oil output is not becoming as it is hoped. Iraqi government needs huge investments in that sector so that infrastructure can be rejuvenated and oil production becomes massive.
US oil production has risen to 21-year high, thanks to oil unearthed from shale rock formations beneath the plains of Texas and North Dakota by a new combination of technologies called fracking. OPEC’s own analysts forecast that demand for its oil will fall by 400,000 bpd this year.
Countries such as Iraq and other Gulf States have so far not been affected by the US shale oil bonanza as most of their output goes to big consumers in Asia, such as China and India. But other members of OPEC, like Angola, Nigeria and Algeria will suffer and their oil export to US has been displaced. They have to look for new buyers now.
Iraq has been able to raise crude oil output rapidly after signing mega projects with some of the world’s largest oil firms. Production has hit 3.2mn bpd now from 2.5mn bpd a year ago. Export is now around 2.5mn bpd from less than 2mn bpd a year ago.
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16 Jun 2013
From the local media sources, it has been revealed that Iraq is looking forward to adopt a new energy strategy for the nationwide energy supply. It has to be stated that with the increased oil production, the internal energy supply in the country is rising and becoming self-sufficient gradually. It is assumed that the country will be self-sufficient in terms of energy by the year of 2022. Presently, the country is producing 3.5 million barrels per day oil, which would around 4.5 million barrels per day from next year. The country is aiming towards a broader aspect as it has the target to reach 9 million barrels per day by the year of 2020. Though, previously the country had a plan to reach 12 million barrels per day by 2017, which had been criticized as unrealistic by many experts.
Under its new Integrated National Energy Strategy, or INES, Iraq examined low, medium and high production growth scenarios in light of the needs of both Iraq and the world oil market, and has gone for the medium option, said Thamir Ghadhban, top energy adviser to Iraqi Prime Minister Nouri al-Maliki and also chair of the INES committee.
The strategy, which has been under preparation for the last two years in co-operation with the World Bank and consultancy Booz & Co, envisages three scenarios for increasing Iraq’s crude oil production. With so called ‘medium scenario’, Iraq is heading towards its target of 9 million bpd. Clearly the figure is not less and if that comes into the reality, Iraq’s economic and energy sector will start blooming.
Iraq’s crude oil output prediction is sharply different from those given by the International Energy Agency in December when its first energy outlook on Iraq in decades envisaged 6.1mn bpd in 2020. The first scenario of the INES plan takes production to 13mn bpd in 2020, while the third takes production to only 6mn bpd, which is close to the IAE’s prediction. Under the medium growth scenario, it means Iraq will be exporting a hefty 8mn bpd, while 1mn bpd will be fed in local refineries.
So, there are enough doubts about the real achievement of Iraq, though as per planning, everything is looking good and it is the time, when the countrymen should start thinking positively. Iraq has tremendous potential and the country needs to utilize its potential neatly. Poor infrastructure is a big problem for Iraq and for that reason, the oil output is not becoming as it is hoped. Iraqi government needs huge investments in that sector so that infrastructure can be rejuvenated and oil production becomes massive.
US oil production has risen to 21-year high, thanks to oil unearthed from shale rock formations beneath the plains of Texas and North Dakota by a new combination of technologies called fracking. OPEC’s own analysts forecast that demand for its oil will fall by 400,000 bpd this year.
Countries such as Iraq and other Gulf States have so far not been affected by the US shale oil bonanza as most of their output goes to big consumers in Asia, such as China and India. But other members of OPEC, like Angola, Nigeria and Algeria will suffer and their oil export to US has been displaced. They have to look for new buyers now.
Iraq has been able to raise crude oil output rapidly after signing mega projects with some of the world’s largest oil firms. Production has hit 3.2mn bpd now from 2.5mn bpd a year ago. Export is now around 2.5mn bpd from less than 2mn bpd a year ago.
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