Iraq Pumps at Record Rate

(edited)

While everyone's staring at Iran, neighbor and former enemy Iraq has hit a record production rate if we are to believe the oil minister. This would mean Iraq, now the world's fourth-largest producer, just became a much more important factor for prices.

Edited by Marina Schwarz
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2 hours ago, Marina Schwarz said:

While everyone's staring at Iran, neighbor and former enemy Iraq has hit a record production rate if we are to believe the oil minister. This would mean Iraq, now the world's fourth-largest producer, just became a much more important factor for prices.

I follow Kurdistan oil companies and yes production has ramped up in that area with the departure of ISIS as the Kurds are able to actually pay the oil companies the money from oil sales they previously were withholding to pay for the war, there is even a mechanism to repay the missing payments! Going forward the transference of the oil fields to the control of the Iraqi government should help production even more as certainty will encourage more investment, no point investing too much just now as you will have to bribe the Kurdistan government then the new Iraqi one. with no guarantee the Iraqi government will give you what you want as they may have some Iranian friends who want your assets.
This further rise will occur when
A) they get a government agreed, I think its been 6 months since the elections were held and still no coalition has been formed
B) hammer out a deal with Kurdistan government on the % of the national budget they will get for the oil
Don't hold your breath on both those happening soon mind you lol

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