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Page added on April 27, 2011

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Iraqi oil ministry prepares for massive increase in production

Remember how the war in Iraq was just to steal Iraqi oil? CNN reports today that the Iraqis are now preparing to keep the profits of their own resources, rather than having them line the pockets of the tyrant Saddam Hussein. The Oil Ministry will auction 12 new exploration zones as Iraq attempts to boost production fivefold in the next six years:

To put these plans in perspective, oil production in Iraq prior to the 2003 invasion was 2.6 million barrels per day. Saddam Hussein sold it through the UN’s Oil-for-Food Programme, a bypass for sanctions that was supposed to generate revenue to cover humanitarian food and medicinal purchases to alleviate the suffering caused by sanctions on the regime. Instead, the program put billions of dollars into Hussein’s bank accounts, abetted by fraud committed by our supposed UN partners on sanctions.  That fraud only got uncovered after the US forcibly removed Hussein from power and seized the records of Hussein’s regime.

The new production could not come soon enough.  With unrest throughout other oil-producing nations, even an incremental increase from Iraq’s current level of 2.4 million barrels per day could help ease worries in the spot market.  Currently, Iraq is 12th in daily production in the world, but their goal would put them slightly ahead of Saudi Arabia’s current output at #2 and challenge Russia for its current top spot.  The oil lease sale should be very lucrative indeed for the Iraqis, who now actually benefit from their own natural resources rather than starve while a tyrant adds to his personal wealth.

Will the US benefit from the difference?  If American oil companies can compete for those leases, they certainly may.  But that is a decision for Iraqis, by Iraqis, which is exactly what we had in mind all along.

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4 Comments on "Iraqi oil ministry prepares for massive increase in production"

  1. Rick on Wed, 27th Apr 2011 2:31 am 

    Sounds like spin to me.

  2. dusko on Wed, 27th Apr 2011 3:56 am 

    I heard we need 4 new Saudi Arabias in 20 years to replace declining production. 1 down 4 to go? Let’s wait and see.

  3. Anthony on Wed, 27th Apr 2011 8:06 am 

    By the time they get all the oil online, there will no longer be a global economy to run on it. The dollar will have collapsed many years before then. How is 7 million barrels supposed to replace pretty much all massive oil fields online now that have already passed peak? There will be chaos in the world by the time the first new well is drilled.

  4. CXGZ61 on Wed, 27th Apr 2011 9:20 am 

    All this doom and gloom is a result of left wing propaganda. high prices is the cure for high prices and this is a prime example of that.

    There is mounting evidence that the earth produces oil through natural processes, its not finite, its infinite. Oil is being extracted from deep wells in several locations across the globe that do not contain organic material. The BP well in the Gulf is one of them. Siberian production wells are other examples.

    The Bakken oil in North Dakota is some of the finest and easily refined oil in the world.

    These ideas of the end of the world as we know it are interesting and certainly have a small percentage chance of coming to pass, but the reality is they are fringe, fear mongered positions brought about by propaganda perpetuated by the left to advance political agendas.

    It’s that paradigm that is coming to an end so certainly many folks that have dedicated their lives to believing and perpetuating those fringe ideas do feel the world is ending. It is for you, but not the rest of us.

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