Baghdad’s intervention in the raging price war between major oil producers and reduce oil prices

Baghdad’s intervention in the raging price war between major oil producers and reduce oil prices

Posted 12/12/2014 10:50 AM

Baghdads intervention in the raging price war between major oil producers and reduce oil pricesIndicators increased that the Iraqi oil industry is moving to a new stage entitled to increase production at any price, to grab a larger share in the global market, in light of the demise of most of the obstacles that have hampered the increase in production, especially after the conclusion of an agreement to settle all disputes with the Kurdistan region.

The Iraqi government has entered the raging price war between major oil producers this week by announcing a reduction in the sale price of oil to the largest markets in Asia and the United States.

This means that entering Baghdad in the stated price war between the world’s top producers, to keep their shares in the market or grab new shares in the market soaked abundant supplies.

The decision comes after the Iraqi conducted Arabia sharp cut to the official selling price of crude going to Asia and the United States last week, and analysts believe that the two dealers are competing to keep the share of each of them in the market oversupplied.

It also comes at a time when most of Baghdad turned the obstacles that have hampered efforts to increase production, because of differences with the Kurdistan Regional Government and the differences branching it with oil companies that are trying to work in the region and in the central and south of the country.

And reduced the Iraqi Oil Marketing Company (SOMO) official price of Basrah Light crude destined to Asia to download January $ 4 for the average crude price of Dubai and Oman, in addition to a significant reduction in the price of shipments to the United States.

120 billion barrels of reserves, the size of Iraq, and increases in some guesses at 300 billion barrels

Reveals that for the rush of Baghdad large to ensure the greatest amount of oil exports to ease the financial crisis flow due to the decline in oil prices and rising war bill against al Daash, at the time of going where the jump is unprecedented in oil production after Collapse differences with the Kurdistan Regional Government.

The Iraqi government has been able recently to close all the doors of the differences with the government of Erbil through the agreement will enable it to increase its exports by about 550 thousand barrels per day, after the agreement included the export of the region of 250 thousand barrels for the calculation of Baghdad, in addition to 300 thousand barrels of Kirkuk fields, across the region tube.

The look of Iraq’s oil exports candidate to reach all-time highs from the beginning of next year with the start of increased production in much of central and southern Iraq fields, easily to reach 3.3 million barrels per day.

Rather, the new reality, which is provided by the agreement can remove the obstacles that were in the way of a relationship Mbthoth foreign companies, the Iraqi government during the reign of al-Maliki, and will enable it to increase its production from central and southern Iraq as well as the fields of the Kurdistan region of fields.

No longer any obstacle for companies to produce at maximum capacity, especially that southern Iraq Ports energy through the ports of Basra and al-Amaya and four floating platforms that can accommodate up to 6 million barrels per day.

And faced a lot of companies like Exxon Mobil and the US Russia’s Lukoil and British Petroleum British major crises with the Maliki government, because of duplication of work in central and southern Iraq and in the Kurdistan region. Maliki threats also faced a choice between the two parties.

3.3 million barrels a record level of exports of oil that Iraq is heading to attain the beginning of 2015

Agreement between Erbil and Baghdad that has been removed and the discrepancy could become production unhindered in the Kurdistan region and in central and southern Iraq.

The only source of concern for the Iraqis that the agreement is to achieve all the dreams of the region to possess the elements of independence on Alerd.oiry analysts that the agreement gives all the ingredients of the region’s oil independence on actual performance and the level of control and devotes his dominance on the Kirkuk oilfields resources, under the central government and the legitimacy of the cover.

Some fear that the agreement will enable the region to achieve de facto independence on the ground, and that the Government of Erbil will be ready to declare independence in the moment of your choice or with the outbreak of any disagreement with the central government.

If the government was able to restore its control over the country’s territory pan, it will restart the Kirkuk pipeline that extends to Turkey via the governor of Mosul, which has a capacity of 600 thousand barrels per day. It also will open other avenues for large oil projects, particularly project crutch giant gas field in Anbar province, which also includes large oil reserves, have not been discovered yet, in addition to a large number of fields in the provinces of Nineveh and Salahuddin. Currently, the government is seeking to approve oil and gas law, which could give guarantees for the oil-producing provinces and engages in project management and the development of plans to invest oil and gas, resulting in a larger increase in production in the dash.

Stands Iraqi proven reserves for decades at around 120 billion barrels due to lack of a comprehensive survey of modern techniques, there are vast areas not explored at all, despite the fact that oil flows naturally from them.

Estimates vary on the size of Iraq’s oil reserves. And some of them go to Iraq has more than 200 billion barrels other, in addition to the estimated reserves of the Kurdistan region of about 45 billion barrels.