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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (9198)	9/24/2003 9:56:29 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 793745

lol! but many a truth is spoken in jest. on another topic....it looks as if despite the sabotage iraq's oil production could exceed the most hopeful early estimates... opec responds by lowering production quotas Iraq Joins OPEC for Oil Production Talks 40 minutes ago By BRUCE STANLEY, AP Business Writer VIENNA, Austria - Iraq (news - web sites) joined its 10 fellow OPEC (news - web sites) members for talks on oil production Wednesday for the first time since the toppling of Saddam Hussein (news - web sites). Oil minister Ibrahim Bahr al-Uloum said Iraq plans to remain a member of OPEC, dismissing any suggestions that the U.S.-occupied country would withdraw from the producers' group it helped found. Iraq's role in OPEC has for months been the subject of debate, with some U.S. officials suggesting it drop out of the cartel to avoid the constraints of export quotas that would one day apply to its slowly recovering oil output. "Iraq should play an active role in achieving the objectives of this organization with the full coordination and cooperation of the group's members," al-Uloum said after taking part in informal talks at the Vienna headquarters of the Organization of Petroleum Exporting Countries. It plans to boost its crude production, currently at 1.8 million barrels a day, to 2.8 million barrels by next March. Iraq aims to double its current exports to 1.8 million barrels over the same period, al-Uloum said. Iraq is struggling to rehabilitate its oil facilities after years of deprivation due to U.N. sanctions and damage from war, looting and sabotage. Iraq's crude production is about two-thirds of what it was before the U.S.-led invasion. "However, by comparison with what it was before the war, this is considered a great achievement by any standard," the minister said. Iraq will rely on assistance from international companies to help it develop its enormous oil resources, he added. Iraq has the world's second-largest proven reserves of crude oil. It aims to increase production to between 3.5 million barrels to 4 million barrels a day by the end of 2005, and to pump about 6 million barrels of crude daily by the end of the decade, he said. "We are planing to use our oil wealth in the most useful way for the welfare of our people and country," he said. Al-Uloum has spoken favorably in the past about privatizing Iraq's state-run oil industry. However, he seemed to back off from that position, telling reporters that privatization was "a good idea for the downstream," or distribution and retail part of the business. Iraqis are fiercely proud of their oil wealth and have long been suspicious of foreign companies that want to help explore for and develop Iraq's oil deposits. Earlier fears that Iraq might quickly restore its prewar output and flood the market with crude have all but disappeared. Sabotage of Iraq's oil pipelines continues to hamper its exports, and Iraq's recovery is taking much longer than expected. Iraqi delegates returned to the table for this week's meetings on OPEC's output strategy after Venezuela backed down from its opposition to Iraq's full participation. Venezuela's reversal cleared the way for the OPEC to focus on the details of assessing global supply and demand for crude during the coming winter. OPEC's members were to meet again later Wednesday in a formal session to ratify an agreement on oil output. OPEC supplies about a third of the world's crude. Venezuela had argued that Iraq should not attend the group's formal meeting because its interim government has not been recognized by the United Nations (news - web sites). Al-Uloum, backed by OPEC's other members, maintained his country had a right to participate as a full voting member. Venezuelan Oil Minister Rafael Ramirez said he would respect the consensus of his fellow OPEC members, though he would register an objection. "We also will attend the meeting, because we don't want to provoke a crisis within OPEC," Ramirez told reporters. Iraq also hadn't participated in OPEC quota agreements since the United Nations imposed sanctions in 1990 to punish Baghdad for invading Kuwait. Iraq's presence was seen as a sign of growing international acceptance of its interim government. Earlier, OPEC representatives conferred over breakfast with delegates from six non-OPEC producers, including Russia and Mexico. OPEC is seeking a commitment of cooperation from independent producers to help keep oil prices stable as an imbalance between supply and demand looms early next year, OPEC Secretary-General Alvaro Silva said after the meeting. Despite a recent slide in crude prices and OPEC's forecast of a buildup in oil inventories this autumn, the cartel's members seemed to agree that they should hold oil output steady for the next few months. OPEC should meet again in December to consider cutting production ahead of an expected seasonal downturn in spring demand, Kuwait's Oil Minister Sheik Ahmed Fahd al-Ahmed Al-Sabah said earlier. Silva predicted OPEC would hold its output ceiling steady at 25.4 million barrels a day for the rest of the year. OPEC's benchmark crude price stood at $24.82, the lowest since May 8. Despite falling, prices remain within OPEC's target $22-$28 price range.