The turmoil in Mosul threatens to upend some of Iraq’s oil production. Most of Iraq’s oil is located in the south near Basra, but there are significant oil fields near Mosul, as well as in nearby Kurdistan. Perhaps more importantly, the fighting in Mosul has brought to a standstill the repairs to Iraq’s main oil pipeline to Turkey
The violence in Iraq could threaten future investment in the country, which has plans to triple its oil production by the end of the decade. The phenomenal level of investment required to achieve such a feat will not happen in a country suffering from severe violence.
OPEC’s second largest oil producer is in severe disarray just as the world has come to rely upon Iraq for greater energy supplies.
Iraq is facing its biggest security threat in years following a surprise attack by Sunni militants on Mosul.
13.4 million barrels per day of all oil liquids production
11.25 million barrels per day of natural gas liquids and crude oil production
As many as 500,000 people have been forced to flee the Iraqi city of Mosul after hundreds of Islamist militants took control of it, the International Organization for Migration (IOM) says.
Troops were among those fleeing as the jihadists from the ISIS group took the city and much of Nineveh province.
The head of the Turkish mission in Mosul and dozens of consulate officials have been seized.
PM Nouri Maliki has asked parliament to declare a state of emergency.
The US said the development showed ISIS was a threat to the entire region.
ISIS – the Islamic State of Iraq and the Levant, which is also known as ISIL – is an offshoot of al-Qaeda.
ISIS in Iraq
* The Islamic State of Iraq and the Levant (ISIS) has 3,000 to 5,000 fighters, and grew out of an al-Qaeda-linked organisation in Iraq
* ISIS has exploited the standoff between the Iraqi government and the minority Sunni Arab community, which complains that Shia PM Nouri Maliki is monopolising power
* It has already taken over Ramadi and Falluja, but taking over Mosul is a far greater feat than anything the movement has achieved so far, and will send shockwaves throughout the region
* The organisation is led by Abu Bakr al-Baghdadi – an obscure figure regarded as a battlefield commander and tactician. He was once the leader of al-Qaeda in Iraq, one of the groups that later became ISIS.
SOURCES : BBC news, Energy Information Administration, CS Monitor