Processing Magazine

Iraq Says its Oil Supply will Help Stabilize Price

June 8, 2010
Iraqi''s oil minister said an expected surge in his country''s oil supply over the next few years will provide a "safety valve" to stabilize volatile oil prices, the Associated Press reports. Hussain al-Shahristani said Iraq''s oil production capacity is expected to more than quadruple to 12 million barrels a day by 2017 with up to a dozen deals with international oil companies awarded in recent years. But analysts say the lack of a petrochemical law, ongoing insurgent attacks and uncertainty about who will lead the next government continue to be challenges to developing Iraqi''s oil sector. They say Iraq''s forecast of 12 million barrels a day in production capacity is unrealistic given continuing security issues and the condition and limits of Iraq''s current oil infrastructure, including pipelines.