• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 8 hours Oil prices going Up? NO!
  • 9 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 9 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 14 hours Oil prices going down
  • 2 days Gazprom Exports to EU Hit Record
  • 17 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 days Oil Buyers Club
  • 2 days Could Venezuela become a net oil importer?
  • 8 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 14 hours Saudi Arabia turns to solar
  • 1 hour Kenya Eyes 200+ Oil Wells
  • 1 hour Are Electric Vehicles Really Better For The Environment?
  • 16 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 16 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 7 hours OPEC soap opera daily update
Alt Text

Why OPEC Won't Flood The Oil Market

Saudi Arabia and Russia are…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Iraq Publishes Oil Data Never Seen Before To Prove OPEC Wrong

Middle East oil

Iraq has released detailed data about the crude oil output at each of its 26 oilfields as well as equally detailed export figures in an attempt to prove that OPEC’s external-source output estimates do not reflect reality.

This is an unprecedented level of detail for the data – Iraq usually supplies just one figure for output and one for exports. Now, the data also includes a total output figure from fields in Kurdistan.

According to these figures, Iraq pumped 4.7 million bpd in September, a few hundred thousand bpd more than what the external sources that OPEC uses for its calculations reported. However, Bloomberg notes, most of the difference between Iraq-reported and externally sourced production figures comes from Kurdistan output, and Iraq’s State Oil Marketing Company did not supply a breakdown of that.

This transparency drives started last week, when Iraq’s Energy Minister, Jabbar al-Luaibi, invited media to Baghdad to discuss production data. The invitation reflected the minister’s renewed effort to remain exempt from OPEC cuts, after initially lashing out at OPEC’s management for using external source-data as the basis for discussing future production quotas, rather than self-reported figures.

The effectiveness of this transparency move, however, remains doubtful. Iraq is OPEC’s second-biggest producer, and it wants to be exempt from a production freeze. It is unclear
how revealing higher production figures than those reported by external source would help its case, unless OPEC has agreed to agree to a cut on a percentage basis—which may very well be the case.

But the most solid argument that Iraq has in defense of its push for an exemption is its continuing battle with the Islamic State, which necessitates maintaining production at its current levels, regardless of what those production rates really are. Related: Will Oil Majors Ever Recover?

Last week, Al-Luaibi rattled markets by saying that if it weren’t for the war with IS, Iraq would be pumping 9 million bpd, adding that Iraq had lost market share to other producers as a result of the conflict, implying that a production cut in Iraq would mean losing even more market share.

This Friday, yet another meeting between OPEC members and some non-OPEC producers ended with not even a whiff of an agreement. Iraq and Iran both insist on an exemption from a freeze or cut, and the chances of the organization breaking the deadlock are getting slimmer.

What Iraq’s data release does do for the markets, is confirm the notion that production figures for OPEC members lack some transparency or accuracy, which may bring even more volatility to the already volatile markets.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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