Oil reserves in Iraq
Encyclopedia
Oil reserves in Iraq
will be the largest in the world according to recent geological surveys and seismic data. The Iraqi government has stated that new exploration showed Iraq has the world’s largest proven oil reserves, with more than 350 billion barrels. Officially confirmed reserves rank third largest in the world at approximately 143 Goilbbl.
As a result of military occupation and civil unrest, the official statistics have not been revised since 2001 and are largely based on 2-D seismic data from three decades ago. International geologists and consultants have estimated that unexplored territory may contain vastly larger reserves.
A measure of the uncertainty about Iraq's oil reserves is indicated by the fact that the U.S. Department of Energy (DOE) estimated that Iraq had 112 Goilbbl, whereas the United States Geological Survey
(USGS) estimated it was closer to 78 Goilbbl and Iraq's prewar deputy oil minister claimed it might have 300 Goilbbl. The source of the uncertainty is that due to decades of war and unrest, much of Iraq oil wells are run down and unkept. repairs to the wells and oil facilities should make far more oil available economically from the same deposits that are now. In fact, Iraq may prove to be contain the largest extractable deposits of oil in the entire Middle East once this upgrading and facility improvements have advanced.
After more than a decade of sanctions and two Gulf Wars, Iraq’s oil infrastructure needs modernization and investment. Despite a large reconstruction effort, the Iraqi oil industry has not been able to meet hydrocarbon production and export targets. The World Bank
estimates that an additional $1 billion per year would need to be invested just to maintain current production. Long-term Iraq reconstruction costs could reach $100-billion or higher, of which more than a third will go to the oil, gas and electricity sectors. Another challenge to Iraq's development of the oil sector is that resources are not evenly divided across sectarian lines. Most known resources are in the Shiite areas of the south and the Kurdish north, with few resources in control of the Sunni population in the center.
In 2006, Iraq's oil production averaged 2 Moilbbl/d, down from around 2.6 Moilbbl/d of production prior to the coalition invasion in 2003. Iraq's reserve to production ratio
is 158 years.
awarded contracts to international oil companies for some of Iraq's many oil fields. The winning oil companies enter joint ventures with the Iraqi ministry of oil, and the terms of the awarded contracts include extraction of oil for a fixed fee of circa $1.40 per barrel. The fees will only be paid once a production threshold set by the Iraqi ministry of oil is reached.
Oil fields contracted include the "super-giant" Majnoon Field
, Halfaya Field
, West Qurna Field
and Rumaila Field
. The East Baghdad Field
, situated in part under Sadr City
, did not receive any bids and the Iraqi oil ministry is considering working the field itself. Oil minister Hussein al-Shahristani told Iraqi public television that the increasing oil production "would finance infrastructure projects across Iraq - schools, roads, airports, housing, hospitals". Iraq's oil deposits hold known reserves of 43 billion barrels of crude
, as well as large quantities of natural gas
.
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
will be the largest in the world according to recent geological surveys and seismic data. The Iraqi government has stated that new exploration showed Iraq has the world’s largest proven oil reserves, with more than 350 billion barrels. Officially confirmed reserves rank third largest in the world at approximately 143 Goilbbl.
As a result of military occupation and civil unrest, the official statistics have not been revised since 2001 and are largely based on 2-D seismic data from three decades ago. International geologists and consultants have estimated that unexplored territory may contain vastly larger reserves.
A measure of the uncertainty about Iraq's oil reserves is indicated by the fact that the U.S. Department of Energy (DOE) estimated that Iraq had 112 Goilbbl, whereas the United States Geological Survey
United States Geological Survey
The United States Geological Survey is a scientific agency of the United States government. The scientists of the USGS study the landscape of the United States, its natural resources, and the natural hazards that threaten it. The organization has four major science disciplines, concerning biology,...
(USGS) estimated it was closer to 78 Goilbbl and Iraq's prewar deputy oil minister claimed it might have 300 Goilbbl. The source of the uncertainty is that due to decades of war and unrest, much of Iraq oil wells are run down and unkept. repairs to the wells and oil facilities should make far more oil available economically from the same deposits that are now. In fact, Iraq may prove to be contain the largest extractable deposits of oil in the entire Middle East once this upgrading and facility improvements have advanced.
After more than a decade of sanctions and two Gulf Wars, Iraq’s oil infrastructure needs modernization and investment. Despite a large reconstruction effort, the Iraqi oil industry has not been able to meet hydrocarbon production and export targets. The World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
estimates that an additional $1 billion per year would need to be invested just to maintain current production. Long-term Iraq reconstruction costs could reach $100-billion or higher, of which more than a third will go to the oil, gas and electricity sectors. Another challenge to Iraq's development of the oil sector is that resources are not evenly divided across sectarian lines. Most known resources are in the Shiite areas of the south and the Kurdish north, with few resources in control of the Sunni population in the center.
In 2006, Iraq's oil production averaged 2 Moilbbl/d, down from around 2.6 Moilbbl/d of production prior to the coalition invasion in 2003. Iraq's reserve to production ratio
Reserves-to-production ratio
The Reserves-to-production ratio is the remaining amount of a non-renewable resource, expressed in years. While applicable to all natural resources, the RPR is most commonly applied to fossil fuels, particularly petroleum and natural gas...
is 158 years.
2009
On June 30 and December 11, 2009, the Iraqi ministry of oilMinistry of Oil (Iraq)
The Ministry of Oil is the Iraqi government agency responsible for Iraqi petroleum. The Minister of Oil since December 21, 2010 is Abdul Karim al-Luaibi.-External links:* by Michael T. Klare, The Huffington Post, July 14 2009...
awarded contracts to international oil companies for some of Iraq's many oil fields. The winning oil companies enter joint ventures with the Iraqi ministry of oil, and the terms of the awarded contracts include extraction of oil for a fixed fee of circa $1.40 per barrel. The fees will only be paid once a production threshold set by the Iraqi ministry of oil is reached.
Oil fields contracted include the "super-giant" Majnoon Field
Majnoon Field
Majnoon Oil field is a super-giant oil field located from Basra, Basra Governorate in southern Iraq. Majnoon is one of the richest oil fields in the world with an estimated 23-25 billion and proven reserves of 12.6 billion of barrels of oil in place...
, Halfaya Field
Halfaya Field
Halfaya Field is an oil field, located east of Amarah, Iraq. Halfaya is proven to hold of recoverable reserve and has production potential of but only produces currently....
, West Qurna Field
West Qurna Field
West Qurna is one of Iraq's largest oil fields, located north of Rumaila field, west of Basra. West Qurna is believed to hold of recoverable reserves, making it the second largest field in the world after Saudi Arabia's Ghawar oil field...
and Rumaila Field
Rumaila Field
The Rumaila oil field is a giant oil field located in southern Iraq, approximately from the Kuwaiti border. The dispute between Iraq and Kuwait over allegedly slant-drilling in the field was one of reasons for Iraq's invasion of Kuwait in 1990. This field was discovered by British Petroleum in...
. The East Baghdad Field
East Baghdad Field
East Baghdad Field is a group of oil fields, located east of Baghdad, Iraq. East Baghdad is proven to hold of recoverable reserve and believed to have a production potential of . The oil field was discovered in 1976 and is wide and long....
, situated in part under Sadr City
Sadr City
Sadr City is a suburb district of the city of Baghdad, Iraq. It was built in 1959 by Prime Minister Abdul Karim Qassim and later unofficially renamed Sadr City after deceased Shia leader Mohammad Mohammad Sadeq al-Sadr....
, did not receive any bids and the Iraqi oil ministry is considering working the field itself. Oil minister Hussein al-Shahristani told Iraqi public television that the increasing oil production "would finance infrastructure projects across Iraq - schools, roads, airports, housing, hospitals". Iraq's oil deposits hold known reserves of 43 billion barrels of crude
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
, as well as large quantities of natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
.