• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 13 mins Socialists want to exorcise the O&G demon by 2030
  • 2 hours UK, Stay in EU, Says Tusk
  • 15 hours How Is Greenland Dealing With Climate Change?
  • 2 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 9 hours Venezuela continues to sink in misery
  • 21 hours BofA Sees Oil at $35-70
  • 23 hours China Car Sales Plummet: Can Musk Unshovel His Groundbreaking?
  • 18 hours Regular Gas dropped to $2.21 per gallon today
  • 1 day How Much Oil Does Aramco Have?
  • 18 hours "Peace Agreement" Russia vs Japan: Control Over Islands Not Up For Discussion
  • 4 hours Orphan Wells
  • 18 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 5 hours Solid-State Batteries
Are Conventional Producers Really Losing Influence?

Are Conventional Producers Really Losing Influence?

While it’s shale that catches…

Oil Finds Footing As Rally Continues

Oil Finds Footing As Rally Continues

Oil has found some footing,…

Iraqi Elections Could Disrupt Oil Industry

Iraq elections

Iraqis are heading to the polls this Saturday to elect their next government, which is most likely to be a coalition—a change that could see delays in new oil projects and infrastructure plans for the industry.

S&P Platts cites sources from international oil companies as saying a new government could delay project approvals, including the awarding of licenses under the latest tender that was held in late April.

Plans for expanding the country’s oil production capacity could also be affected by the change of government, including the South Integrated Project managed by Exxon and PetroChina, which would be instrumental in allowing Iraq to boost production to 8 million bpd in the future.

Refinery construction and export capacity expansion are two more areas that could see delays or changes if the government switches hands: the current government has offered investors new refinery construction projects with a combined capacity of 1 million bpd of crude, but only one such project has been awarded, to Kurdistan company Ranya International. The refinery will process 70,000 bpd.

Besides delays in project approvals, if the new government—whoever that may be—fails to tackle the most pressing problems of the country that just emerged from its years-long battle with the Islamic State, it might descend back into chaos and violence, which will have major implications for all industries, not just oil.

Related: Oil Markets Tremble On Iran, Israel Flare-Up

CNBC reports that the incumbent PM, Haider al-Abadi, is the most likely winner of the Saturday vote, but there is much stiffer competition than there was four years ago. The number of parties running for election is this year is nine, versus just four in 2014. What’s more, Al-Abadi will be competing with former PM, Nuri al Maliki, who still carries a lot of weight in Iraqi political life.

Iraq is OPEC’s second-largest oil producer, so any political shifts in the country will have a direct and palpable effect on oil prices. The risk for prices becomes greater because of the likelihood of a coalition rule—coalitions are invariably much shakier constructs than majority governments, regardless of the country.

By Irina Slav for Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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