Posted by: mulrickillion | March 2, 2012

On Oil, Iraq Gets in its Own Way

Iraq Oil

By Daniel J. Graeber, Geopolitical Monitor, Feb 23, 2012 —

Oilprice.com, Feb 23, 2012

Summary

The International Energy Agency announced it was set to review Iraq’s energy sector as part of its World Energy Outlook for 2012. Last year, the IEA said Iraq was on pace to provide the largest single increase to global oil production in the coming years. In December, however, the agency warned that domestic politics could get in the way of energy developments. Given Iraq’s post-war political track record, it might be awhile before Iraq realizes its full oil potential.

Analysis

Iraqi officials had said they hoped the IEA’s assessment would give them some insight into what Baghdad and the Kurdish government in Erbil need to do in order to become a dependable oil and natural gas exporter. There’s still no law governing the country’s oil sector, yet the IEA had said Iraq was on pace to reach a production level of around 4.36 million barrels per day by 2016 and there’s nowhere to go but up. The political circus in Iraq, however, suggests not much gets done in a country where oil can buy a lot of things, but does little to keep the lights on for most Iraqis.

Iraq, after a stormy 2010 parliamentary election, smashed the world record for the longest period between elections and the forming of a new government. Not exactly an accomplishment for a country that had democracy handed to them by the so-called standard bearer of participatory government. Baghdad politics have since been held together by the tiniest of threads, with various political factions storming out of the halls of government at various times for various reasons. Though the fight hasn’t yet taken to the streets, the country’s Shiite prime minister ordered his Sunni vice president arrested on terrorism charges. . . .

On Oil, Iraq Gets in its Own Way – Geopolitical Monitor

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