Iraq’s parliamentary oil and gas committee plans to increase the country’s oil production to more than five million barrels per day.
, not only could this be done with relative ease by Iraq but it could also easily be the precursor to further oil production increases to 13 million barrels per day if handled correctly. This would make Iraq the biggest oil producer in the world.Officially, according to the EIA, it holds a very conservatively-estimated 145 billion barrels of proved crude oil reserves . Unofficially, it is extremely likely that it holds much more oil than this.
The question at this point is, with these enormous reserves in place, and specific plans on how to turn these into up to 13 million bpd in the Oil Ministry’s files, why is Iraq not already producing a lot more oil than it is? The reason is the ongoing endemic corruption that lies at the heart of Iraq’s oil and gas industry.
The sums of money that Iraq has lost could have funded all the major projects needed to boost oil production up to at least 7 or 8 million bpd to begin with, notably the crucial Common Seawater Supply Project , . According to a statement made in 2015 by then-Oil Minister – and later Prime Minister of Iraq – Adil Abdul Mahdi, Iraq “lost US$14,448,146,000” from the beginning of 2011 up to the end of 2014 as “cash compensation” payments to international oil companies and to other entities.
The sheer scale and scope of this corruption created the unwillingness of major Western firms to become too heavily involved in the country. In June 2021, U.K. oil super-major, BP, said it was working on a plan to spin off its operations in Iraq’s supergiant Rumaila oil field into a standalone company. The statement was highly reminiscent of the withdrawal of the U.K.
On the first point, hurdles had already arisen on several projects before in southern Iraq relating to the approval of contracts for service work, such as building new pipelines and drilling wells, as well as for obtaining visas for workers and customs clearance for vital technical equipment. Concerns surrounding such issues were shared by ExxonMobil.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Suspended BBC presenter 'called teen twice to demand mum stop investigation'Suspended BBC presenter 'called teenager twice to demand their mum stop investigation'
Read more »
UK cloud market should be probed for competitiveness: OfcomComms regulator says UK cloud market should be referred to competition watchdog
Read more »
Byron takes win in rain-shortened and wild Atlanta Cup raceREPORT - A wild NASCAR Cup race at ATLMotorSpdwy ended early as rain hit the track, allowing WilliamByron to capture his fourth win of the year.
Read more »
Holly takes break from This Morning following family tragedyThe host of the popular daytime show will take a lengthy break and return to TV screens in September
Read more »
Security guard praised as he takes towels off sun loungersA security guard filmed pulling towels off sun loungers
Read more »
Qatar Investment Authority takes 5% stake in Washington Wizards owner\n\t\t\tExclusive scoops\n\t\t\tSmart data to help spot risk and opportunity\n\t\t\tAnalysis of broader trends in M&A\n\t\t\tLex, our agenda-setting business commentary (Premium only)\n\t\t\tDue Diligence, an exclusive M&A newsletter (Premium only)\n\t\t
Read more »