• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 7 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 53 mins The Dirt on Clean Electric Cars
  • 11 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 5 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 13 hours Iranian Sanctions - What Are The Facts?
  • 46 mins U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 7 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 6 hours EU to Splash Billions on Battery Factories
  • 4 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 14 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 14 hours Superhumans
  • 10 hours Who's Ready For The Next Contest?
Alt Text

IEA Asks Majors Oil Producers To Boost Production

IEA director Fatih Birol called…

Alt Text

Saudi Arabia Calls The End Of Russia’s Oil Prowess

Saudi Crown Prince Mohammed bin…

Alt Text

Are U.S. Oil Exports Really Unstoppable?

U.S. crude oil exports hit…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Why Iraq’s Oil Production Has Reached It Limits

Rumaila oil field

Iraq has succeeded in ramping up oil production by more than 1 million barrels per day over the past two years, a remarkable achievement for a country that was torn apart by the lightning advances made by the Islamic State.

But Iraq’s success could be running up against a wall at this point, as low oil prices sap the state of the resources it needs to invest in further production. Iraq finances the investments in the state’s oil production, with much of the work carried out by international companies such as Lukoil, BP and Royal Dutch Shell. The meltdown in crude oil prices has led to a sharp fall in state revenue. Without that revenue, Iraq and its partner companies are being forced to scale back their ambitions.

The Wall Street Journal reports that the international companies operating Iraq’s massive oil fields outside of Basra in the south are trimming their drilling plans. “You’re going through difficult months,” Ariel Flores, GM of the BP-led Rumaila Operating Organization, told the WSJ in an interview. “You slow down and you make decisions to pause efforts.” Rumaila, considered to be the second largest oil field in the entire world, will see production stay flat at 1.4 mb/d. Shell and Lukoil are also cutting back on their efforts to boost production at several of their key fields, though they had ambitious plans to do so. Instead, they are focusing on keeping output from falling.

A few years ago, Iraq had a goal of tripling output to 9 mb/d by 2020. Although it was considered unrealistic, most oil analysts saw a huge upside to Iraq. The IEA predicted Iraq would double output to 6 mb/d by 2020, but that no longer looks workable either.

Production stands at about 4.3 million barrels per day, up substantially from the 3.27 mb/d Iraq averaged in 2014. But further gains would require more drilling and a lot more money for investment – something that is increasingly scarce in Iraq.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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