The improved security position in Iraq has had its effect, at least on the oil fields. The IEA (International Energy Agency) reports that the Iraqi crude outputs are running well above their pre-war numbers. The latest report puts crude production in Iraq at 2.32 million barrels per day.
IEA has attributed this rise to the improved security condition in Iraq since the summer ’surge.’ The Paris based agency said that this level of output is the highest in three years of US presence there. After the 2003 invasion the output was stuck at 1.7-2 million barrels per day. The monthly oil report by IEA put the figure at 1.9 million barrels per day in the first quarter of 2007.
The improved crude production has seen Iraq repay a $471 million loan to the IMF ahead of schedule. The IEA says that the increase is primarily due to ‘more regular’ pipeline crude shipments from the northern city of Kirkuk to Turkey. Incidentally, Northern Iraq has been the focal point of the security forces for quite some time now.
However, the reports highlighting the positive news put things in perspective right away and warned that threat of attacks on oil fields and pipelines was very much real. The number of direct attacks on oil pipelines has fallen in recent times. Apart from the increased number of troops in Iraq, this has also been due to the fact that Sunni militant groups have turned against their former al-Qaeda allies.
The record oil prices and ever increasing demand all around the world would mean well for these developments in Iraq. If these numbers are anything to go by, coming weeks might see a further increase in the oil output. This would also ease a bit of pressure on the already stretched global oil supply chain. It’s a win-win for both - Iraq and the oil-hungry nations.
