Iraq's export of its oil in the form of derivatives instead of crude... It will bring in 60% more revenue to achieve $15 billion per month
Fri, 21 October 2022 11:54 AM
Follow-up / National News Center
Government talks and advice from economists are increasing on the
need to diversify the Iraqi economy and the
extent of the danger of continuing dependence on oil,
amid expectations that the demand for oil will change by 2030, that is, after only 8 years.
Despite this complete conviction, nothing has happened by successive governments to act according to this conviction,
while Iraq continues to approach the danger that all data confirm the inevitability of its occurrence, no matter how long it takes, while specialists describe that “filling the needs of the current generation will be on Calculating the development and needs of future generations,” a frightening sentence.
Perhaps one of the opportunities for economic transformation and to remedy the danger of complete dependence on oil is for Iraq to export, in addition to crude oil, gasoline and other fuels.
Government advisor Mazhar Muhammad Salih says:
“Currently we are importing gasoline to achieve self-sufficiency.
We must create an infrastructure that achieves sufficiency and exports the surplus.
In this context, we must go to develop the petrochemical and refining sector, and
the benefit here will be great, as refining one barrel of crude oil.
It gives us derivatives more than 5-7 times its value, and
the energy sector is responsible for 50% of GDP, 93% of financial resources and 98% of foreign flows, and
therefore the oil sector must be restructured.
A barrel of crude oil, which amounts to 159 liters, can produce
73 liters of gasoline, and
38 liters of kerosene, in addition to
aviation fuel in an amount of 14.82 liters, as well as
liquefied petroleum gases in an amount of 6.6 liters, in addition to
heavy fuel oil in a quantity of 6.4 liters. And
other products with an amount of 25.8 liters. And
if we calculate at today’s prices, the average price of a liter of gasoline and kerosene globally is more than 1 dollar per liter, and jet fuel is 0.7 dollars per liter, and if we calculate the rest of the remaining less valuable products at an average price of 0.5 dollars per liter,
this means that one barrel will bring in revenues of more From 110 dollars from selling tars of gasoline and kerosene resulting from one barrel, more than 10 dollars from selling jet fuel, and 20 dollars from selling other derivatives, so that
the return from refining and selling one barrel of oil is more than 140 dollars per barrel,
while the price of a barrel Oil is currently $90 a barrel,
which means that revenues will be 60% greater than the revenue from exporting a barrel of oil. In other words,
if Iraq refines all the barrels of oil that it exports at the present time, amounting to 3.3 million barrels per day, and
exports them in the form of derivatives instead of exporting them as crude oil,
Iraq's daily revenues will reach 495 million dollars, or about 15 billion dollars per month,
but when exported as crude oil. Its revenue will be approximately $297 million per day, or less than $9 billion per month.