• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 6 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 5 hours U.S. Withdraws From U.N. Human Rights Council
  • 5 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 1 hour "The Gasoline Car Is a Car With a Future"
  • 9 hours Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours What If Canada Had Wind and Not Oilsands?
  • 2 hours Saudi Arabia turns to solar
  • 9 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 3 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 10 hours WE Solutions plans to print cars
  • 2 hours EVs Could Help Coal Demand
  • 7 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 10 hours Gazprom Exports to EU Hit Record
  • 15 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 1 day Oil prices going down
  • 1 day Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
Alt Text

240,000 Bpd Offline Following Clashes In Libya

Continuing clashes between the Libyan…

Alt Text

U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves

The United States has overtaken…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Iraqi Oil Sector Shrugs Off ISIS Threat

Iraqi Oil Sector Shrugs Off ISIS Threat

With major setbacks in the fight against ISIS in Iraq, the Obama administration has been faced with questions about its strategy. Rather than making progress as pacifying extremist militants, the conflict appears to only be deepening.

But what is remarkable is how little the crisis is affecting Iraq’s oil sector. Iraq has succeeded in steadily boosting oil output. However, the best is yet to come. Related: Could The New Silk Road End Old Geopolitical Tensions?

June could be a milestone month for the war-torn country. While unconfirmed at this point, Bloomberg reported that shipping data suggests Iraq could dramatically increase oil exports in the coming weeks. Iraq may increase oil exports by an additional 800,000 barrels per day, putting the OPEC member on track to export a record high 3.75 million barrels per day.

That will bring a flood of new oil onto an already oversupplied market, potentially pushing prices down from their recent highs in the $60-$65 per barrel range. Already the rally since March is showing some signs of weakness, but three quarters of a million barrels per day will make the glut much worse. That could present new challenges to struggling shale producers in the US. Related: Four Opportunities Presented By Stabilizing Oil Prices

Iraq is an important player in the global supply picture. Aside from the 3 million barrels per day that it has been producing, Iraq holds some of the highest potential for future growth in supplies. It is sitting on truly massive oil reserves with extremely low production costs. It is expected to be one of the largest contributors to oil supply growth in the coming decades.

The only thing that stands in its way are all the “above-the-ground” problems: dilapidated infrastructure, a dearth of investment, political gridlock – and critically – a lack of security across much of the country. ISIS has overrun much of the country north of Baghdad, but the large oil fields in the south are far removed from the fighting. Related: Oil Still At Risk Of Geopolitical Turmoil

However, Iraq has surprised many market watchers and overcome a lot of these problems to arrive at where it is today.

By Charles Kennedy Of Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment
  • Brian B. on May 28 2015 said:
    You might be surprised, those massive oil fields in the south of Iraq are a whole lot closer to ISIS then you might think. With ISIS's routing of the poorly trained Iraqi "Army" from Ramadi recently, the outlook for Iraq is rather bleak. If and when ISIS captures the southern portion of Iraq, they will take a large chunk out of the "glut" problem we are having.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News