http://peakoil.com/current-events/iraq- ... 95-90.html
I doubt Kurdistan all by itself would ever be another Saudi Arabia, but Iraq as a whole certainly could be.
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TheAntiDoomer wrote:http://seekingalpha.com/instablog/418684-utualpha/9877-is-iraqi-kurdistan-the-next-saudi-arabiaThe Kurdistan region of Iraq is a geological extension of the world’s richest petroleum fairway, which extends from Saudi Arabia to Syria. It is estimated to have around 45 billion barrels of oil reserves making it sixth largest in the world, mostly recently discovered (even excluding Kirkuk and Mosul which are essentially controlled by the federal government). Due to geo-political conflicts, the resources in Kurdistan have been essentially untapped. Upon the overthrow of Saddam Hussein’s regime in Iraq, however, Kurdistan began to open itself to foreign investment (the tapping of the Kurdistan keg). Currently about 25 companies have been granted the Profits Sharing Contracts (PSC) from the Kurdistan Regional Government (KRG). Some of the publicly traded companies are listed below.
I like you. You are a funny smart wise-ass.killJOY wrote:For the point of view of realpolitik, the US occupation of Iraq is a stunning achievement.
It's immoral, illegal, insane, but the US now has a rosier future in the post peak world.
It will be interesting to see what all the "transition/powerdown" people in the US do once the Iraqi flows increase and start filling in where Cantarell is leaving off. Will these people "swear off" consuming such Iraqi oil out of a superiority complex?
I sure hope so, as this will reduce demand, cause prices to drop, and allow me to fuel up my tractor more cheaply.
mos6507 wrote:But the thing is, despite the popular opinion that iraq was on overt resource grab, not all of the iraqi oil will be bound directly for the US. So yes, it will increase the global production of oil vs. the Saddam era but I'm not sure how much of it will be guaranteed to get to us.
Iraq's hopes for an oil-revenue fueled postwar recovery suffered a sharp blow Tuesday as the foreign oil companies it counted on to help develop its vast reserves greeted the country's first oil auction in over 30 years with grumbles and just one deal.
Two consortiums, headed by British giant BP and Exxon Mobil, submitted offers for the Rumaila oil field — the largest prize on offer with 17.8 billion barrels in crude reserves.
The Exxon Mobil-led consortium, which included Malaysia's Petronas, requested $4.80 per barrel for production over the minimum, while BP wanted $3.99 per barrel. The ministry was willing to pay $2 per barrel.
BP agreed to match the ministry's price and won the contract for Rumaila.
The failure of even Chinese oil companies -- typically the biggest payers in auctions for energy assets -- to meet Iraq's demands is not a good omen for future bid rounds, IHS Global Insight Middle East Energy analyst Samuel Ciszuk told Reuters.
Part of the reason for the chasm on value perceptions may be related to reservoir damage, Ciszuk said.
After viewing data on the fields in recent months, foreign companies may have concluded the damage, due to underinvestment in recent years, is greater even than Baghdad realizes, and so that the two sides have varying perceptions on the risks attached to meeting the production targets in the contracts.
If the gas is not going to be used to create petroleum products, Mr. Braudaway said, it would normally be reinjected to keep the pressure up as oil is extracted, insuring a longer life for the wells. But Iraq does not do that either. Instead, in the south, which has 80 percent of the country's oil reserves, it uses an antiquated system of water injection to keep the pressure up. (The problems are even worse in the north, where for reasons known only to themselves, Iraqi engineers pumped things like excess fuel oil, refinery residues and old crude oil into some wells, probably damaging them permanently.)
Since 1992, NOC has been re-injecting fuel oil into the Baba and Avanah domes. In 1990 it had a total of 269 wells, including 71 production wells.
By Ruba Husari
(Published in International Oil Daily Sept. 28, 2004)
Iraq’s leading oil field, Kirkuk, may have suffered irreparable damage to its reservoir as a result of the reinjection of fuel oil, refinery residue and gas-stripped oil over the last 15 years, according to Iraqi industry sources.
The reinjected products amount to some 1.5 billion barrels, according to one estimate.
The process, which was widespread under the former regime of Saddam Hussein, is still continuing, as Iraq struggles to balance its product needs. In general, crude production since the end of last year’s war has continued in the same manner as before, with little sub-surface maintenance.
While under UN sanctions from 1990 to 2003, Iraq for years reinjected excess fuel oil into the Kirkuk field, to deal with excess products that it failed to export, legally or otherwise. Baghdad was allowed to export crude from 1996 under the UN supervised oil-for-food program, under strict supervision by UN monitors.
Petroleum engineers and analysts say the reinjection of so much fuel oil and crude could complicate the Kirkuk field’s reservoir study. “Kirkuk is already a carbonated field and reinjecting fluids that are not original fluids to the field could modify the reservoir structure,” said one engineer.
In a worst-case scenario, the use of additives could change the “wettability” of the field, creating oil-wet rocks instead of water-wet ones. That kind of damage is usually irreparable, experts say.
The injection of fuel oil has definitely increased viscosity, making crude flows harder, sources say. One remedy to this problem involves using gas lift and installing gas pumps in the subsurface facilities.
“It all depends on where in the field the injection took place, how big the area concerned is, and whether it was done at a limited number of wells and which ones,” said another petroleum engineer.
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