Iraq recovery to have major impact on global oil prices - consultant

17 February 2010 18:11  [Source: ICIS news]

Iraq to influence oil pricesLONDON (ICIS news)--Iraq is expected to produce 10m bbl/day of crude oil by 2017 and could wield significant influence on global crude prices, a key industry consultant said on Wednesday.

“The recovery of Iraq could have a real impact on global oil prices as the ability of the world market to absorb this extra capacity may be limited,” said Ennio Senese, head of resources for consultancy firm Accenture in Turkey and Greece.

Iraq’s oil fields currently have around 2.4m bbl/day capacity. This is expected to rise to 4m bbl/day by 2013 and 10m bbl/day by 2017,” he said at the International Petroleum Week conference.

“Any major geopolitical incident, with Iran, for example, would have an instant effect on prices,” he added.

In a speech outlining what he termed ‘wild-card influences’ on oil prices, Senese highlighted Iraq as a key unpredictable influence. He noted the variables that would affect Iraq’s expanding oil production capacity.

“There are three key variables. One, when Iraq is formerly a part of OPEC. Two, security in Iraq, and three, whether Iraq passes a fully-fledged oil law to protect the current oil contracts,” he said.

Read Paul Hodges’ Chemicals and the Economy blog
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