Iraq Oil Output Declines

There’s an interesting piece in the FT today about how oil output is steadily decining in Iraq due to over explotation of existing wells and the difficulties in attracting the technical staff necessary for serious development of new capacity:

Iraq’s oil industry has gone backwards since the fall of Mr Hussein in the spring of 2003. Oil production is barely more than 2m barrels a day, a far cry from the 3.5m b/d Iraq pumped before the first war with the US in 1990 and the level industry analysts thought the country could again achieve within a couple of years of the war ending.

The latest figures show Iraq produced 1.24m b/d in November, the lowest level in a year. Iraq’s capacity to produce oil appears to be declining, possibly because its southern fields are being driven too hard and damaged by officials keen to compensate for losses to production from the north, which has been hampered by frequent sabotage.

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About Edward Hugh

Edward 'the bonobo is a Catalan economist of British extraction. After being born, brought-up and educated in the United Kingdom, Edward subsequently settled in Barcelona where he has now lived for over 15 years. As a consequence Edward considers himself to be "Catalan by adoption". He has also to some extent been "adopted by Catalonia", since throughout the current economic crisis he has been a constant voice on TV, radio and in the press arguing in favor of the need for some kind of internal devaluation if Spain wants to stay inside the Euro. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again".