Daily Management Review

IEA: Iraq will enter the top three oil leaders


The International Energy Agency (IEA) said that in the next ten years Iraq will become the world's third-largest producer of "new oil" on the market and the fourth-largest oil producer in the world. Thus, Iraq will come close to the top three world leaders in oil production (the United States, Saudi Arabia and Russia).

Paul Lowry
Paul Lowry
On Thursday, the IEA released a study on the prospects for the development of the Iraqi energy industry. The agency notes that only in the next ten years - until 2030 - oil production in Iraq will increase by 1.3 million barrels per day - to 6 million barrels per day. According to the dynamics of production growth, Iraq will become the third largest state in the world after the USA and Brazil. Canada is in fourth place, and Iran is the fifth. Such a significant increase will lead to the fact that by 2030 Iraq will enter the top 5 largest producers of all oil.

Nowadays, it is ranked sixth after the United States, Saudi Arabia, Russia, Canada and China. Thus, Iraq will bypass Canada and China, approaching Russia.

The agency experts note that the size of the proven oil reserves in the country fully allows Iraq to maintain high production growth. In 2005 the volume of proven reserves was 115 billion barrels, and in 2010 the Ministry of Oil of Iraq reported an increase in proven reserves by 25%, to 143 billion barrels. Iraq is currently the fifth largest country in the world in proven oil reserves and the third largest in proven conventional oil reserves.

According to the Ministry of Oil, proven oil reserves are located throughout the country in about 70 fields, but the bulk of the reserves - 55% - are concentrated in four "supergiant" fields in the south - Rumaila, West Qurna, Zubair and Majnun. The remaining large proven reserves are located east of Baghdad, in the center of the country, and also in the north, in the Kirkuk area.

The IEA notes that since the publication of the previous study on Iraq in 2012, oil production there has grown by almost 50, to 4.7 million barrels per day.

Restoration of the country's oil industry led to the situation when Iraqi oil accounted for 20% of all new oil entering the world market from that period. According to this indicator, Iraq was second in the world, second only to the United States, where over the past few years production has noticeably increased thanks to shale oil. In turn, this has already had a significant impact on prices.

source: iea.org