According to a new analysis by LIGNET.com , Iraq plans a major expansion in oil production, but most experts believe its long term target is too optimistic. Baghdad believes it can get away with much less attractive terms for oil companies because of the enormous size of its untapped oil reserves.
Iraq has vast oil reserves, and hopes to be almost even with Saudi Arabia in terms of production in the near future. There is a planned auction early next year to determine what companies will have the right to drill in the country. Iraq has surpassed prewar production numbers, and hopes to continue to grow as only 20 of the 70 known fields in the country are currently being exploited. Despite offering paper-thin profit margins, 46 oil companies qualified for the auction.
According to the LIGNET analysis:
“The infrastructure of Iraq is inadequate for significant increases in oil production and limits how much oil can be produced and exported. This has been stalled progress on nearly all attempts to improve infrastructure, including pipelines, storage tanks and port facilities.”
Click HERE to read the full analysis of this story from LIGNET.com , a new Washington, DC-based intelligence analysis and forecasting service.
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