Lack of outlets, lack of infrastructure and pressures impeding the increase in oil production

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[size=52]Lack of outlets, lack of infrastructure and pressures impeding the increase in oil production[/size]

[size=45]Baghdad / Mustafa Al-Jourani[/size]
[size=45]Iraq is preparing to raise the level of its oil production based on the decision of OPEC, amid governmental and popular anticipation for the rise in financial revenues as a result of this step, which coincides with the noticeable rise in crude prices during the past few months.[/size]
[size=45]Last Thursday, the OPEC + alliance agreed to another increase in oil production per month, confirming that the producing countries do not bear responsibility for the disruption of Russian supplies.[/size]
[size=45]The group agreed to increase its target production in June, to 432,000 barrels per day, in line with the current plan to cancel production restrictions imposed in 2020 when the Covid-19 pandemic curbed demand. Regarding the decision to increase, the Iraqi Oil Ministry responded in an official statement, which was addressed by several news sites, by saying that Baghdad is committed to the decision of the Organization of the Petroleum Exporting Countries “OPEC +”.[/size]
[size=45]And the ministry's spokesman, Assem Jihad, said, "Iraq is within the OPEC + agreement, and it is included in the schedule of production increases that are distributed to all countries."[/size]
[size=45]He continued, "We are committed to the decision of the OPEC + countries, which in turn work to monitor the oil markets, and set a schedule for increases whenever they see the need to pump more oil," stressing that "the latest increase in which Iraq participated was 400,000 barrels, which were divided among the countries according to proportions."[/size]
[size=45]Pros and cons[/size]
[size=45]In this regard, oil expert Sabah Alo said, in an interview with Al-Mada, that “the oil-producing countries, especially those under the wing of OPEC, are under great pressure from the United States of America and the European Union countries to fill the oil deficit after the imposition of economic sanctions on Russian revenues. Because of the ongoing war with Ukraine.[/size]
[size=45]Alou pointed out, "Iraq needs two years to raise the production value to 400,000 barrels," noting that "the negatives and obstacles of the decision for Iraq are numerous, the most prominent of which is the lack of other outlets to export oil, because the current one is old and it can hardly export production according to the 200,000." barrels per day.”[/size]
[size=45]He added, "Iraq needs to increase cooperation with Saudi Arabia in order to export its oil through its lines that connect with Iraq, through which more than one million barrels can be exported."[/size]
[size=45]And the oil expert continued, saying, "Iraq is under great pressure as a result of increased cooperation with Saudi Arabia, and that these data indicate that Iraq was unable to increase production suddenly."[/size]
[size=45]Iraq exports most of its oil through OPEC, to the ports of the Persian Gulf and mono-buoys, and exports the rest through the Turkish port of Ceyhan and through oil basins to Jordan.[/size]
[size=45]The Iraqi economy is completely dependent on the oil sector, where oil revenues constitute 95% of Iraq's total income from hard currency, which causes the economy in the country to fluctuate due to its link to oil market prices.[/size]
[size=45]Iraq also occupies the fifth place in the world with oil reserves of 148 billion and 800 thousand barrels, and it is the second largest crude oil producer in the Organization of Petroleum Exporting Countries “OPEC” after Saudi Arabia, with an average production of 4.6 million barrels per day in normal conditions.[/size]
[size=45]A clear Iraqi inability[/size]
[size=45]Meanwhile, Duraid Al-Enezi, an economist, says that "there are many obstacles that stand in front of Iraq regarding raising its oil production following the OPEC decision, as the SOMO company responsible for exporting oil suffers from difficulty in exporting the current quantities."[/size]
[size=45]In an interview with (Al-Mada), the economic expert believes that "Iraq needs to conclude new contracts on the export of oil with countries that want to buy oil," noting that "Iraq will suffer as a result of this decision because it does not have the required infrastructure."[/size]
[size=45]Al-Enezi concluded his speech by saying that “solving the problems that Iraq’s export energy suffers from is the most important obstacle facing the government,” noting that “terrorist operations targeting pipelines, in addition to all smuggling operations, will be among the obstacles to be resolved before thinking about increasing production.” “.[/size]
[size=45]Also, according to the Ministry of Oil, Iraq made profits amounting to 10.55 billion US dollars from oil exports during the month of April.[/size]
[size=45]The statement added that the total quantities of crude oil exported for the month of April from oil fields in central and southern Iraq amounted to 98 million and 100 thousand and 42 barrels, while from the Kirkuk fields through Ceyhan port, the exported quantities amounted to 2,991 thousand and 60 barrels.[/size]
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