here's a good read on iraq's oil production potential, army corps of engineers has already finished the damage and reconstruction assessment and contract bidding apparently closed off in august
geotimes.org
here's a snippet, but the entire article is worth a read
War Numbers
Estimated Damage Assessment from Stratfor Services
War-related as of mid-July...........................................$250-350 million
Looting from mid-March 2003 through mid-July 2003.....$750 million*
*Excludes costs of recent and frequently sophisticated sabotage attacks and looting
It has been a tumultuous year in Iraq, and a tumultuous year in the oil markets. Prior to the commencement of the war in Iraq in March 2003, the Department of Defense designated the U.S. Army Corps of Engineers as Executive Agent of a project to repair any damage to and, continue operations of, the Iraqi oil infrastructure. The Army Corps, in conjunction with civilian commercial contractors, has been working since then to stabilize the Iraqi oil infrastructure and assess damages. In August, the Corps closed the application period for companies bidding on contracts to continue to repair and maintain oil operations in Iraq this fall into next year. Opportunities for contracts should open in mid- to late-October. The Corps finished its initial assessment of war-related damage to the Iraqi oil complex in July.
Experts predict stabilizing and slightly declining oil prices over the next year, as Iraqi production slowly picks up the pace and the Organization of Petroleum Exporting Countries (OPEC) adjusts production in other member states. As Iraq boasts the world’s cheapest lifting and transport costs, experts agree that it is essential for the country to maximize production as soon as possible.
2003 Iraq Oil Production Information from the Energy Information Administration
Iraq hopes to expand production to 2.0 million barrels of oil per day (bpd) by December 2003, 2.8 million bpd by April 2004 and 6.0 million bpd by 2010. Expanding production has already been slower than anticipated, as the rebuilding faces frequent sabotage and looting, outdated oil technology, theft of crude oil, and ongoing security issues with the main pipeline that crisscrosses the nation.
According to a U.S. State Department press release, the Department of Defense estimates the potential oil income to the Iraqi people at $20 billion to $30 billion per year. A percentage of that will be used to rebuild Iraq, the release says.
Megan Sever
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Al-Gailani is managing director of GeoDesign Limited, a consultancy office based in London that specializes in Middle East databases. Previously, he has worked as an independent consultant on several projects in the Middle East and in South America, as well as for the Iraqi National Oil Company in Baghdad. He graduated from Baghdad University in 1972 with a bachelor’s degree in geology and worked briefly for the Iraqi National Oil Company in Baghdad. He later received his master’s degree from the University of Aberdeen and his Ph.D. from Imperial College in London. |
