Saturday, August 29, 2009

"It's all about oil, Rob"

Thanks to a link provided by Debunking Peak Oil, we have this interesting tidbit on Iraq's oil. Funny but I don't see any American oil companies mentioned, even though my oh-so progressive friends lectured me that oil was what the US invasion of Iraq was really about ("It's all about oil, Rob").

Iraq aims to increase oil production by up to four times: minister
(AFP) – 3 days ago

Iraq aims to increase its oil production by up to four times with the development of 10 new fields to be auctioned later this year, Iraqi Oil Minister Hussein al-Shahristani said Tuesday.

The minister spoke after a meeting with oil companies in Istanbul to present the new fields and the terms for the tender, which will follow a first-round bidding in June that saw investors snub all but one of eight contracts on offer.

Iraq expects production from the new fields slated for auction "to be several million barrels per day," Shahristani said.

"So combining the fields of the first and second round, Iraq should increase its production to at least three to four times of its current production," he said.

Iraq, which has the world's third largest oil reserves, is yet to catch up with output levels prior to the US-led invasion in 2003, hit by deadly unrest and tensions between Baghdad and the oil-rich autonomous Kurdish region in the north.

Iraq currently produces around 2.4 million barrels per day, with oil accounting for some 85 percent of government revenues. It exports some two million barrels per day, most of it from the fields of the southern province of Basra.

British energy giant BP and China's CNPC International Ltd were the only companies to win a bid in the first auction, while a slew of other foreign firms snubbed the other contracts offered by Baghdad, unhappy with financial terms.

It was the first time Iraq's oil industry had been opened up to foreign companies since being nationalised four decades ago.

Iraq also has considerable natural gas reserves, and Shahrastani said on Tuesday Baghdad might consider supplying the planned Nabucco pipeline, designed to carry gas to western Europe, by-passing Russia.

Developing the fields "will take five to six years", he said. "When these are developed, Iraq will have much more gas than it needs, which will be definitely available for export."

Iraqi Prime Minister Nuri al-Maliki has earlier said his country may contribute 15 billion cubic meters of gas to Nabucco, whose suppliers are yet to be determined.

The 3,300-kilometre (2,000-mile) conduit, planned to become operational in 2014 with a capacity of 31 billion cubic metres of gas, is planned to run through Turkey, Bulgaria, Romania and Hungary to Austria.

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At 12:33 PM, Blogger missiondweller said...

Yes, you don't hear much from the crowd about how even after spending Billions and sacraficing several thousands of American lives to liberate Iraq, there is not one American oil company yet involved in developing Iraq's oil industry.

At 10:22 PM, Blogger murphstahoe said...

it doesn't matter is US oil companies make the money. At status quo, the US economy craters if gas goes to $6 a gallon. It behooves the government to keep the supply coming no matter the source. Unless the government is creative enough to invest in bypassing that problem. The money spent on the war would have done pretty nicely in that regard.

At 10:26 PM, Blogger murphstahoe said...

And I neglected to mention - you don't only make money pumping and selling oil. Halliburton makes plenty of money selling the equipment - and repairing it everytime it gets blow'd up.

At 8:16 PM, Anonymous Anonymous said...

For $25 bucks, I can blast through the mountain twisties and curvy canyon roads in a cheap roadster. 4 or 5 hours entertainment, at half the price of movie tickets and munchies for two.

Tell me again why I care how much oil is left in the ground, when it's so cheap to fill my thank?

Tell me again why I care about "eco-friendly" or "carbon neutral" gee-gaws and gim-cracks (Think, "Prius"), when I get 35 MPG having MAJOR fun Getting-from-A-to-B?

Riggghhhhhhtttt!! Real people don't give two squats about the whinings of America-hating, capitalism-fearing evil liberals.

Keep up the good work, Mr. President!,

Keep the cheap oil coming!


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