• 4 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 10 minutes IT IS FINISHED. OPEC Victorious
  • 16 minutes GOODBYE FOREIGN OIL DEPENDENCE!!
  • 31 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 21 hours The Great Climate Change Swindle
  • 2 hours End of EV Subsidies?
  • 14 mins Maersk's COO statment.
  • 2 hours Price Decline in Chinese Solar Panels
  • 18 mins Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 1 day S. Australia showing the way
  • 1 day More OPEC Members May Leave
  • 23 hours China Builds LNG Icebreaker
  • 3 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 1 day Exxon buys green power.
  • 2 days I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 2 days Qatar Leaving what is the effect on prices

Global Energy Advisory – 21st November 2014

Politics, Geopolitics and Conflict

Under fire from the Islamic State (IS), Baghdad has cut a deal with the Iraqi Kurds, ending a long-running and intensifying dispute over unilateral Kurdish oil exports. This news has not only resulted in a jump in share prices for companies operating in Iraqi Kurdistan, but will also lead to another run on investment in Iraqi Kurd oil plays. Under the agreement between Baghdad and Erbil, the Kurdistan Regional Government (KRG) will give 150,000 barrels per day of oil exports to Iraq’s federal budget, and in return Baghdad will release $500 million in budget funds for the KRG. Since January, Baghdad has been withholding the Iraqi Kurds’ share of state revenue in retaliation over the KRG’s unilateral shipments of oil to Turkey, where it is being sold on to the international market.

It’s a great deal for the Kurds—if it holds. While the 150,000 bpd represents about half of what the Iraqi Kurds are exporting to Turkey, exports are expected to rise to 500,000 barrels per day in the first quarter of next year. The bottom line here is that the KRG is now exporting enough to pay off Baghdad, pay off its producers to whom it is indebted, and still turn a nice profit. The Kurds are essentially now able to afford their independence, and at 500,000 barrels per day, they will account for 17% of all Iraqi oil exports. Their influence is also growing due to Baghdad’s need for the Kurdish Peshmerga security…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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