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Iraq could have largest oil reserves in the world


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Iraq dramatically increased the official size of its oil reserves yesterday after new data suggested that they could exceed Saudi Arabia’s and be the largest in the world.
The Iraqi Deputy Prime Minister told The Times that new exploration showed that his country has the world’s largest proven oil reserves, with as much as 350 billion barrels. The figure is triple the country’s present proven reserves and exceeds that of Saudi Arabia’s estimated 264 billion barrels of oil. Barham Salih said that the new estimate had been based on recent geological surveys and seismic data compiled by “reputable, international oil companies . . . This is a serious figure from credible sources.”

The Iraqi Government has yet to approve a national oil law that would allow foreign companies to invest. Mr Salih said that the delay was damaging Iraq’s ability to profit from oil output, robbing the country of potentially huge revenues. With oil selling for more than $125 dollars a barrel and demand rising, Mr Salih is frustrated that Iraq still struggles over the establishment of a regulatory framework. “There is a real debate in the Government and among political leaders about the type of oil management structures we should have. I am for liberalising this sector and allowing the private sector to come in to develop these vast resources.”

BP, Exxon Mobil, Chevron, Royal Dutch Shell and Total have been queuing for rights to exploit Iraqi reserves. Mr Salih confirmed that Iraq was negotiating the outlines of two-year deals with some of the companies. He was optimistic that a draft law could be approved in the near future.

“We need to recognise after so many decades of mismanagement of the oil industry that we need to call a spade a spade,” he told a group of delegates at the World Economic Forum in Sharm el-Sheikh. “We can regulate it, but we need private investment to develop Iraq’s production capacities.” He said that Iraq was pumping 2.5 million barrels of oil a day at present, earning about $70 billion (£35.9 billion) in revenue this year.
The price of oil bounced back to record highs yesterday when Opec refused to increase supplies following Saudi Arabia's promise to the US that it would provide an extra 300,000 barrels a day. In New York, the price of light, sweet crude for June delivery rose from $125.92 to US$126.35. In London, Brent crude for July delivery was up 82 cents at $125.81 per barrel.

By: Sonia Verma in Sharm el-Sheikh
Times Online
Conniepae

42 responses // Iraq could have largest oil reserves in the world

  • Surprise, surprise. The speculators in the futures market are at fault for the price. Wouldn't it be funny if someone flooded the market and they took a bath.
    Marilynn_Murray
  • The bottom is going to fall out of this one HARD.
    Zip43
  • When I was watching the news program this morning, they talked about the speculators. Surprise, it's pension funds, etc. Americans who have their retirements managed by these speculators will pay the higher prices at the pump and possibly loose part of their funds if the speculators who are managing their money are wrong.

    It may be a double whammy for individuals who have their 401K's managed by people who are speculating. The individuals who are doing the speculating will make their money, it's the funds that will loose.

    Are future retirees going to be hurt today by high gas prices and hurt later by the decline of their funds if action is taken to curtail the speculating? Speculators aren't playing with their own money. I think they are playing with retirees and future retirees money. They may end up causing pain today and tomorrow.
    Conniepae
  • Think of the damage that oil will do to our environment. For that matter think about what was done to Iraq's environment trying to get possession of it.
    Marilynn_Murray
  • greed and arrogance has always compelled the dangerous few to invade and take the wealth of others, its only a matter before someone invades Iraq for their Oil, oh wait...
    teddy14
  • http://current.com/items/76352622_oil_rich_but_no_gas#
    Check out this pod about Iraqi oil since the US led invasion.
    abbym0308
  • "The figure is triple the country’s present proven reserves and exceeds that of Saudi Arabia’s estimated 264 billion barrels of oil"

    That's a lot of oil, especially when prices are shooting up so quickly at the moment.

    According to the BBC, Goldman Sachs are predicting that oil could reach prices of $200+ per barrel by the end of the year.
    mattbrawn
  • i was right there is a magical supply of oil in the ground.
    riverdeer
  • So this means with the price at 130 dollars a barrel, Iraq is poised to be the richest country in the middle east. And guest what we(America) control the dang! gon country. so if the Saudi say no to increase in oil supply we could tell them to stick it and go to "our" oil reserve in Iraq and increase it ourselves. If OPEC refuses to change the price we do it for them because we now control the lion share of the oil reserves. Brilliant Bush. see if we can't get oil in our land then God darn it we are going to middle east. Good job Mr president. too bad you confirmed this at the end of your term. no worries you could always cook the law books and ensure America's dominance over the oil reserves. besides we are there for 100 years right Mcain!
    stone246
  • Remember Enron? More of the same, just using a different name!

    A FEW individuals went to jail, but MANY were hurt by it. They were using manipulation (speculation?) to gain larger profits. We need to implement accountability now! Before it's too late. Individuals need to fear 'The Rule of Law'! Maybe they won't break the laws so easily if they were enforced!

    We are being led to believe oil is going higher, because they are manipulating it. When the news tells us prices are going higher, it's the spin to get us to accept it. We need alternative energy!

    The same 'talking heads' spinning the oil crisis, are the same 'talking heads' who spun us into war with Iraq. 'Truth in Journalism' has been replaced with 'Talking Heads'! Spinners!
    Conniepae
  • alternative energy = independence = freedom :)
    recommended by  Marilynn_Murray
    jade_azul16
  • Our White House and Pentagon knew this before the illegal invasion.This was the sole purpose of the entire war.This government robbed and murdered Saddam Hussien,and the Iraqi people( millions) the same way they robbed and murdered the Native Americans here and stole their land. How in the Hell can people ever think that God is suppose to somehow bless these atrocities ?
    recommended by  Marilynn_Murray
    keithponder
  • We can't get it out of there though with a war going on... any export process would be disrupted or destroyed. One more thing to add to the list of things the Bush buddies didn't think about.
    xenomode
  • Why doesn't the U.S. use some of the billions of dollars it spends there to set up an Iraqi Oil Company owned by the Iraqi people so that they could actually benefit from the oil?
    shbhanda
  • Scary but expected I would say...
    MoMoney
  • Hundreds of thousands dead, an economy in ruin, the rule of law and even the Constitution itself challenged - lies, lies and more lies, all for the sake the richest few more rich. There is intelligent life in the universe out there looking at us and wondering if there is intelligent life in the universe.
    eldamon
  • shbhanda, Iraqi oil companies weren't part of the master plan. The Iraqi people weren't part of the master plan. I'm afraid foreign oil companies were part of the master plan all along.

    I hope the Iraqi people refuse to let their oil be taken over by foreign oil companies. Sorry, but stealing is wrong, no matter who does it. If foreign oil companies gain access to Iraqi oil, it's nothing short of theft by deception and destruction. SAD!
    Conniepae
  • watch this comment being used here, here and here
    I think us continuing to search for oil just seems like we're adding a little more time to a ticking bomb. This is a problem that is going to ultimately solve itself, which would be about the time we run out of the stuff. Its time to innovate and progress past this energy source before it not only devours our environment, but also our economy.
    sagewho
  • Gee, I wonder why we are over there? Hmmmmm...?
    realitybytes
  • The truth behind Operation Iraqi Freedom.....
    mariposablanca
  • 'Operation Iraqi Freedom', now that's a term we don't hear used often anymore. We are no longer talking about Iraqi's as though we are there to free them from a dictator. Catch phrases like that should not have been used in the first place. It was ‘spin’ used to mislead the American people, when the falsehood of WMD’s in Iraq was exposed.

    Just take a look at the background destruction when you see footage on the nightly news. There may be a 'few' Iraqi's that think what America has done for them has been for their benefit, but I'm sure far more Iraqi's would disagree.

    I sure hope no other country comes to help us with that kind of destruction! No thanks, I'm 'hoping' we will help ourselves. No destruction necessary! Just good old 'American Spirit' in action. We can do it! Yes we can!

    Accountability and ’Truth in Journalism’ is what we need. We should to be able to trust and verify what we are being told! The ’Truth’ doesn’t need to be hidden from view, or distorted. It’s the ’spin’ distorting facts that is hurting us!
    recommended by  Marilynn_Murray
    Conniepae
  • This is really not that suprising anyways. I have a family friend who finished his 18 month tour and Iraq and he paints a horrific picture of Iraq that the press don't show you. Like the fact that there are more military personnel that guard the oil fields than the army bases! So when we hear about "hope" from bush, we all know what hope he is talking about, the hope of the billions the oil industry is going to make on the oil from Iraq. And talking about Iraq could be one of the richest countries, yeah if the US would allow them to use THEIR reasources, but I highly doubt it.
    etosha_pent
  • This means that the USA will probably not leave Iraq for decades and will significantly increase the number of its military there, and probably leave Iran alone.
    Vierotchka
  • you guys know this isn't necessarily a good thing for the Iraqi economy right? US aside, being rich in natural resources can actually be a detrimental thing for developing countries. The value of currency rockets up, then the export sector dies. The newly non diversified oil giant is then a petrol state, non democratic to boot and at the mercy of market fluctuation.
    bdub4u
  • Vierotchka? I halfway agree. This senseless "War On Terror" may come to some kind of conclusion, but the US will never, ever leave. As for Iran? If GWB has his way, he'll go beyond posturing and throw them into his horrible mix before he's done. A little something "extra" for the next (real) president to deal with.
    His thinking? "If I leave it so bad that all the attention will shift to how to end this thing, maybe no one will remember who started it." He's stupidly arrogant enough to believe that.
    recommended by  Marilynn_Murray
    huntre
  • With the Iraq Civil War raging and pipelines blowing up what impact will this really have on fuel use/supply/consumption around the world? My guess is little to none.
    StuntBunny
  • Well, if Iraq has that much oil I think GWB is going to try to make his legacy here. By making Iraq the 51st state of America! He didn't wage an illegal war for nothin!

    Now America can get back to 2 or 3 dollars a gallon, and the Auto industry can forget about that hybrid talk and get back to crankin out V8 SUV's.
    vladrath
  • jade_azul16 you just made my week with that statement
    jakes_green
  • energy = domestic and foreign policy. suspending deliveries to the SPR and implementing an excise tax holiday are not well thought out solutions to the real cause of our countries energy dilemma. a revolution for independence has found us again, but this time the fight is to preserve our country from economic ruin. to accomplish this we need real energy policy focused on self-sufficiency. massive invesment in clean alternative and renewable sources of energy developed and produced right here in the good ole USA is the only viable solution. our national defense policy has been to ensure stability in the middle east so a régime, dictator, and/or a nation could not control the commodity and threaten the financial security of our country. since we have made a mess trying to influence régime changes, maybe it would be smarter to eliminate the source of these individuals, companies, and countries power to enfluence the market by eliminating the real source of their power... eliminate the need for the commodity!
    bsboys
  • ...Why the hell would they announce that? I'd want to keep it a secret until the US gets a new prez.
    Dmitri_Molotov
  • I certainly found that article interesting clayjj05. It seems too easy to condemn for misuse of the environment and too hard to actually practice it yourself. I am not too well educated about the entire situation, but I do know that I hold my tongue before preaching something I know I can not practice. We all know that he is doing a lot of good, I mean that's why we're talking right now, but everything can't be perfect I guess.
    Sara_Airey
  • so..we weren't trying to liberate the iraqis??
    keeshii768
  • That's the whole point, folks. What the...?

    The Iraqi government now needs to pay us back.

    And they'll need our help to build refineries, of course.

    And since we're in the neighborhood...

    Guess who's getting some oil?

    All of us.

    And let's not bother with the "no, not me" rhetoric because whether you physically buy oil or not, everything needs oil to reach you, or for you to reach "it."

    And it could be a paper carton of eggs.

    Oil.
    kramericus
  • This is not new information. Why do you think we are in Iraq? Not to sound like a flaming liberal but we are there to secure our petroleum security not to secure democracy and freedom for the Iraqi people. Trust if it was discovered that Cuba had the largest reserves we'd be occupying their country as well and sending a lot more than cell phones. I'm of the opinion that we'll not necessarily be at war with the Iraqis, or anyone else vying for the same oil but no doubt have a continued "military precense" in the Middle East for some years to come until the world has sucked the wells dry then we'll revisit rebuilding our cities the correct way less dependent on the automobile.
    common_sense_allowed
  • Interesting that they mention 2 year deals with the oil companies. Somehow I have a bunch of friends who work for Exxon and Shell (3 from my college dorm, and my neighbor growing up), and the sense that I've gotten is that they don't go in to these countries without long term commitments, due to the high investment cost of setting these pipelines up. And a place with a lot of conflict, like Iraq, is generally not a considered an ideal location. Perhaps the barrier to entry is lower because the infrastructure is in place in the region already?
    Tori
  • If American companies end up handling the Iraqi oil, this war as it turns out, will be obvious to the rest of the world, it was a pre-emptive war of aggression for oil.

    The world court should look long and hard at facts leading up to the war. Wars started to take the natural resources of another country should not be tolerated. If America is allowed to start a war against a country using fixed facts, to acquire their natural resources, then it opens the door to everyone.

    America has natural resources that other countries don’t have. I don't think they should be able to come here and take over our coal industry, or our vast farm land. How many other countries have food shortages? Should they be able to come here and take over our farms?
    Conniepae
  • respectfully i disagree. i don't believe the iraqi government owes this country anything. our leaders right or wrong believed it was in our countries best interest to bring about a regiem change. i do not believe it was the right decision, but then again 30-years of neglect by our congress to seriously address the root cause, when they knew about this pending disaster probably has had a more disasterous effect on our countries domestic and foreign policy decisions then going into iraq in the first place. our reliance on oil (no matter who has biggest piece of cake) to fuel our economy has to stop anyway, best if it is sooner rather than at the last minute. does anyone really believe we would have invested the blood and treasure in that region of the world if there was not a profit motive?
    bsboys
  • bsboys, I respectfully disagree. I believe we owe the Iraqi people something! We certainly should not get their oil!

    Your statement: our leaders right or wrong believed it was in our countries best interest to bring about a regime change. WE WERE NOT LED TO BELIEVE OUR YOUNG VOLUNTEER SOLDIERS WERE BEING SENT TO IRAQ FOR REGIME CHANGE. WE WERE TOLD THEY HAD WMD'S AND COULD STRIKE AMERICA SOON! REMEMBER ‘MUSHROOM CLOUD‘?

    IT HAS BEEN PROVEN FAKE DOCUMENTS WERE USED TO MISLEAD US AND CONGRESS! WHAT PART OF THAT IS OK? MANY HAVE DIED! HOW IS THAT OKAY? RIGHT OR WRONG IT'S OK? IF IT'S OK, THEN THE RULE OF LAW DOES NOT MATTER. IT'S OK TO START A PRE-EMPTIVE WAR WITH ANYONE THEY CHOOSE?

    ‘ACCOUNTABILITY’ AND ‘THE RULE OF LAW’ REALLY MUST BE A THING OF THE PAST? SAD!
    Conniepae