IRAQ is preparing to halve its official oil production target, forcing companies including BP and Shell to renegotiate their contracts.
UPDATE: The lowering of the production target has been denied. Iraq is saying they are keeping to the 12 million bpd target
The country’s Oil Ministry, with backing from the Prime Minister Nouri al-Maliki, will set a new target to produce between 6.5 million and 7 million barrels per day by 2017, down from original plans to pump 12 million barrels, according to industry insiders.
Iraq, which is a member of the OPEC cartel that pumps 40 per cent of the world’s oil, produces about 2.68 million barrels a day, barely higher than under Saddam Hussein.
High oil prices, which have doubled since the 12 million target was set two years ago, will compensate Iraq for the lower production. Ministers also recognize that creaky pipelines and storage facilities could not cope with such an increase.
The International Energy Agency estimates that investment of more than $US160 billion ($149bn) would be needed to meet the target.
Samuel Ciszuk, senior energy analyst for IHS Energy, said an over-ambitious target was politically motivated, being set before elections in 2009. “It was clearly designed to impress the Iraqis ahead of the elections. The oil majors will now seek more attractive terms.”
If you liked this article, please give it a quick review on ycombinator or StumbleUpon. Thanks
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.