IEA: ISIS Threatens Future Oil Production in Iraq
Posted: 12/01/2014 04:12:16 Edited: 12/01/2014 03:12:16 Clicks: 1624
IEA warns that ISIS has already threatened the future oil production in Iraq, which may cause oil prices to rise.
Fatih Birol, the chief economist of ISIS said that due to rampant ISIS, IEA had to reevaluate the expectation of oil supply. Because ISIS restraints willingness to invest for oil production. He expressed that instability in the Middle East, especially current situation in Iraq had great influence on oil market.
“A new parameter appears on oil market suddenly.” Fatih Birol said, “In the past, prices, supply, demands and economic growth are what we should consider. Now, we need to consider new parameter: ISIS.”
In World Energy Outlook published in last month, IEA predicted that in the next 25 years, the largest part of global oil demand increment would come from the Middle East and Iraq would provide half of increment in the region. It is estimated that by 2025, daily oil production in Iraq will increase to 2.6 million barrels and increase to 5 million barrels in 2040.
However, Fatih Birol said that such growth needed to invest 15 billion dollars into Iraqi oil industry. But being anxious about security caused insufficient investment. Nevertheless, analysts are forced to consider to lower anticipation on oil supply.
According to World Energy Statistical Review of BP, Iraq has the third largest global conventional oil reserves, about 150 billion dollars. The first largest and the second largest are Saudi Arabia and Iran respectively.
Fatih Birol, the chief economist of ISIS said that due to rampant ISIS, IEA had to reevaluate the expectation of oil supply. Because ISIS restraints willingness to invest for oil production. He expressed that instability in the Middle East, especially current situation in Iraq had great influence on oil market.
“A new parameter appears on oil market suddenly.” Fatih Birol said, “In the past, prices, supply, demands and economic growth are what we should consider. Now, we need to consider new parameter: ISIS.”
In World Energy Outlook published in last month, IEA predicted that in the next 25 years, the largest part of global oil demand increment would come from the Middle East and Iraq would provide half of increment in the region. It is estimated that by 2025, daily oil production in Iraq will increase to 2.6 million barrels and increase to 5 million barrels in 2040.
However, Fatih Birol said that such growth needed to invest 15 billion dollars into Iraqi oil industry. But being anxious about security caused insufficient investment. Nevertheless, analysts are forced to consider to lower anticipation on oil supply.
According to World Energy Statistical Review of BP, Iraq has the third largest global conventional oil reserves, about 150 billion dollars. The first largest and the second largest are Saudi Arabia and Iran respectively.
