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FINANCIAL NEWS
IEA expects Iraq’s crude output to hit 6m bpd by 2020
09 Oct 2012
(MENAFN) The International Energy Agency (IEA) expected Iraq’s oil output to more than double by 2020, Reuters reported.
According to its ‘Iraq Energy Outlook’, Iraq’s oil production would reach 6.1 million barrels per day (bpd) by the end of this decade under its central scenario.
The figure represents only the half of what Iraq targeted when it signed deals with foreign oil companies, and the IEA highlighted the risk of production rising more slowly than expected.
Output has passed 3 million bpd for the first time in three decades. Iraq earlier this year overtook Iran to become the second biggest producer in Opec, after Saudi Arabia.
Oil industry experts see Iraq’s ambitious 12 million bpd output target by 2017 unlikely, as the sector faces many challenges including infrastructure bottlenecks, red tape and bureaucracy.
The IEA’s report also presented a delayed scenario, in which energy investment in Iraq rises only slowly from 2011 levels, leading to oil production of 4 million bpd in 2020 and 5.3 million bpd in 2035.
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