Home > Uncategorized > Oil Companies Look to the Future in Iraq

Oil Companies Look to the Future in Iraq

This article is about the fields of oil that are located in Iraq, many believed that the United States-led invasion because their oil. This article says that companies seem to have calculated that is worth their while to accept deals with limited profit now, in order to cash in on more lucrative development deals in the future. These companies that have entrance to do business  in Iraq don’t worry too much of the profit per-barrel, but their value as an entrance ticket to the oil sector of southern Iraq. Analysts say the deals on three of the country’s top field’s show that Iraq, is on the path to joining the world’s major oil-producing nations. With Iraq producing oil could upset the equilibrium in OPEC and increase tension with the neighboring oil giants Iran and Saudi Arabia. Other development rights to 10 other Iraqi oil fields will be offered to foreign companies at a public action in Baghdad on Dec 11. The auction for the oil fields have come at an awkward time; just months before national elections that could provoke renewed violence or sweep in a new government that could disown the deals. The article also makes clear that Iraq has also been forced to acknowledge that it cannot hope to revive its decrepit oil industry without the money and the technical expertise of the major companies. The three deals already done in Iraq would product in output to 7 million barrels a day, which would move it from the world’s 13th largest producer to the fourth, according to Department of Energy statistics. Iraq has the third largest proven reserves of oil in the world, with about 115 billion barrels, but it does not rank in the top 10 producers.  Because the sanctions were imposed in 1990 iraqi officials said.

This article have positive news for all of us, I believe that the price of oil would decrease for barrel after Iraq start production at full capacity. The OPEC won’t be happy with this news, but the rest of the world will be. I think that the Iraqi people in the long run can be beneficiate for the extraction of oil.  The oil from Iraq would create more jobs, and better economic to locals. This production of oil would open new doors to this country, in the international market.  I don’t think that the United States when to Iraq for oil, because the time in money spend is greater than the benefit in return.  It really doesn’t matter who is helping Iraq to extract their oil what it is important is the benefit that they would have in return.

 

http://www.nytimes.com/2009/12/01/world/middleeast/01iraqoil.html?_r=1&hpw

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