The Iraqi Oil Surge by Sammy Six
Omschrijving
The Iraqi Oil Surge In A New Energy Landscape
By Sammy Six (Clingendael International Energy Programme)
After decades of wars and sanctions, Iraq has firmly re-established itself among the world’s top oil producers. Baghdad has negotiated production contracts with a host of foreign oil companies, putting Iraq on track toward producing 9 million barrels per day by 2020, close to what Saudi Arabia and Russia currently produce. The International Energy Agency (IEA) foresees only a doubling of current production levels, but this still amounts to about 6 million barrels per day by the end of the decade. The IEA highlights numerous political, infrastructural and security issues that could severely constrain further production growth.
Iraq’s oil potential is based on the country’s vast proven reserves that are relatively untapped and inexpensive to extract, unlike other sources of incremental oil. Because of its favourable geology, Iraq has been forecasted to account for almost half of global supply growth over the current decade. These volumes of oil have traditionally been associated with matching the ever-growing demand for oil from emerging countries outside the OECD. Markets, however, are undergoing rapid changes. The combination of high prices and new technologies has enabled the extraction of so-called “’unconventionals”, which are previously inaccessible hydrocarbons. In the US, production of light tight oil from shale formations has boomed due to the large-scale application of hydraulic fracturing and horizontal drilling, while in Canada extensive amounts of oil from tar sands are being produced. At the same time, demand growth looks increasingly uncertain, particularly in OECD countries but even in emerging markets.
In this lecture, Sammy Six will shine a light on energy developments in Iraq, what it means for global energy security, and how the current situation with IS is impacting Iraq’s ambitious goals of developing into one of the world’s largest oil producers.
Locatie
Prinsessegracht 23, 2514 AP Den Haag
Organisator
Olie- en Gastechnologie
Naam en contactgegevens voor informatie
Herman van der Meyden