Schlumberger, Others Gain From Iraqi Oil Expansion
June 16 2011
Schlumberger , Halliburton, Baker Hughes and other oil exploration and production services firms are set to ramp up their operations in Iraq as the country embarks on an ambitious plan to displace Saudi Arabia as the world’s largest producer of oil.Despite sitting on more than 140 billion barrels in proven reserves, Iraq’s current oil production stands at a piffling 2.5 million barrels per day (mb/d).
Oil services firms earn substantial revenues from their operations Middle East. Asia and the Middle East contribute 29% of our $105 Schlumberger price estimate, 13% of our $57 Halliburton price estimate and 14% of Baker Hughes $89 price estimate.
The land of opportunities
According to OPEC data, Iraq may hold the world’s third largest extractable reserves of oil. This 143 billion barrels of proven reserves means the war ravaged country holds more oil than Russia, the U.S., Brazil, Mexico, Norway, Indonesia and the U.K. combined. These 7 countries are among the top 10 non-OPEC oil producers for the year 2009. Interestingly, despite being one of the founding members of the OPEC, Iraq is presently exempt from the oil cartel’s quota limits.
The EIA estimates that Iraq’s reserves may be much larger than the present figure as about 90% of the country remain unexplored and the oil industry in the country has been severely hampered by years of sanctions and infrastructure bottlenecks. However all this is set to change as the new government is pushing ahead with its program to boost oil production and has awarded 12 contracts between 2008 to 2010 that aim to quadruple the existing capacity by the year 2017.
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June 16 2011
Schlumberger , Halliburton, Baker Hughes and other oil exploration and production services firms are set to ramp up their operations in Iraq as the country embarks on an ambitious plan to displace Saudi Arabia as the world’s largest producer of oil.Despite sitting on more than 140 billion barrels in proven reserves, Iraq’s current oil production stands at a piffling 2.5 million barrels per day (mb/d).
Oil services firms earn substantial revenues from their operations Middle East. Asia and the Middle East contribute 29% of our $105 Schlumberger price estimate, 13% of our $57 Halliburton price estimate and 14% of Baker Hughes $89 price estimate.
The land of opportunities
According to OPEC data, Iraq may hold the world’s third largest extractable reserves of oil. This 143 billion barrels of proven reserves means the war ravaged country holds more oil than Russia, the U.S., Brazil, Mexico, Norway, Indonesia and the U.K. combined. These 7 countries are among the top 10 non-OPEC oil producers for the year 2009. Interestingly, despite being one of the founding members of the OPEC, Iraq is presently exempt from the oil cartel’s quota limits.
The EIA estimates that Iraq’s reserves may be much larger than the present figure as about 90% of the country remain unexplored and the oil industry in the country has been severely hampered by years of sanctions and infrastructure bottlenecks. However all this is set to change as the new government is pushing ahead with its program to boost oil production and has awarded 12 contracts between 2008 to 2010 that aim to quadruple the existing capacity by the year 2017.
[You must be registered and logged in to see this link.]