Pressure has increased upon Iraq’s oil industry this year.
Its northern Kirkuk pipeline has been down since March 2014, and Baghdad and
Irbil remain at cross purposes over energy policy. Still exports saw an
increase in September, while prices for Iraqi crude declined.
September reversed a drop in exports that had been going on
since June. For the month Iraq exported an average of 2.542
million barrels a day. That was up from August’s 2.375
million barrels, which was the second lowest amount of the year. The Oil
Ministry had not achieved 2.5 million barrels a day since May. All of this
petroleum came from the southern Basra pipeline. The Kirkuk line has been down
since it was bombed in March, and now large sections of it are under insurgent
control. For the year Iraq has exported an average of 2.477 million barrels, a
91,000 barrel increase from 2013. At the same time, that is just around the same level it was at in 2012 when it exported 2.41 million barrels a month. This is far below what the Oil Ministry was
hoping for this year due to its on going dispute with the Kurdistan Regional
Government over petroleum policy and the insurgent summer offensive.
Iraq Oil Exports And Profits
2011-2013
|
Month
|
Avg.
Exports
(Mil/
Bar/
Day)
|
Avg. Price Per Barrel
|
Revenue (Bill)
|
|
Jan. 11
|
2.16
|
$90.78
|
$6.082
|
|
Feb.
|
2.20
|
$98.44
|
$6.064
|
|
Mar.
|
2.15
|
$107.13
|
$7.167
|
|
Apr.
|
2.14
|
$114.26
|
$7.342
|
|
May
|
2.22
|
$108
|
$7.47
|
|
Jun.
|
2.27
|
$105.17
|
$7.173
|
|
Jul.
|
2.16
|
$108.79
|
$7.311
|
|
Aug.
|
2.18
|
$104.91
|
$7.124
|
|
Sep.
|
2.10
|
$104.89
|
$6.619
|
|
Oct.
|
2.08
|
$104.04
|
$6.742
|
|
Nov.
|
2.13
|
$106.59
|
$6.833
|
|
Dec.
|
2.14
|
$106.18
|
$7.061
|
|
2011 Avg.
|
2.16
|
$105.00
|
$6.913
|
|
Jan. 12
|
2.10
|
$109.08
|
$7.123
|
|
Feb.
|
2.01
|
$112.92
|
$6.595
|
|
Mar.
|
2.31
|
$117.99
|
$8.472
|
|
Apr.
|
2.50
|
$116.79
|
$8.795
|
|
May
|
2.45
|
$103.03
|
$8
|
|
Jun.
|
2.40
|
$90.09
|
$6.453
|
|
Jul.
|
2.51
|
$97.14
|
$7.577
|
|
Aug.
|
2.56
|
$106.22
|
$8.445
|
|
Sep.
|
2.59
|
$107.59
|
$8.371
|
|
Oct.
|
2.62
|
$105.51
|
$8.578
|
|
Nov.
|
2.62
|
$104.32
|
$8.200
|
|
Dec.
|
2.34
|
$103.72
|
$7.551
|
|
2012
Avg.
|
2.41
|
$106.20
|
$7.846
|
|
Jan. 13
|
2.35
|
$104.92
|
$7.672
|
|
Feb.
|
2.53
|
$107.66
|
$7.644
|
|
Mar.
|
2.41
|
$103.76
|
$7.772
|
|
Apr.
|
2.62
|
$98.70
|
$7.764
|
|
May
|
2.48
|
$97.23
|
$7.477
|
|
Jun.
|
2.32
|
$97.40
|
$6.799
|
|
Jul.
|
2.32
|
$101.00
|
$7.272
|
|
Aug.
|
2.57
|
$104.45
|
$8.356
|
|
Sep.
|
2.07
|
$104.87
|
$6.511
|
|
Oct.
|
2.25
|
$102.57
|
$7.160
|
|
Nov.
|
2.381
|
$102.57
|
$7.324
|
|
Dec.
|
2.341
|
$102.89
|
$7.470
|
|
2013 Avg.
|
2.386
|
$102.33
|
$7.435
|
|
Jan. 14
|
2.228
|
$102.37
|
$7.074
|
|
Feb
|
2.799
|
$102.05
|
$8.001
|
|
Mar
|
2.396
|
$101.03
|
$7.507
|
|
Apr
|
2.509
|
$100.69
|
$7.582
|
|
May
|
2.582
|
$100.69
|
$8.077
|
|
Jun
|
2.423
|
$102.96
|
$7.470
|
|
Jul
|
2.442
|
$102.27
|
$7.742
|
|
Aug
|
2.375
|
$97.44
|
$7.172
|
|
Sep
|
2.542
|
$91.80
|
$7
|
|
2014 Avg.
|
2.477
|
$100.14
|
$7.513
|
Unfortunately Iraq’s exports recovered when prices were
dropping. For the last two months Iraqi crude sold for less than $100 per
barrel. In August it went for $97.44 and in September $91.80. Iraqi oil had not
dipped below the $100 mark since a three month stint from April to June in
2013. For September, the country earned $7 billion, the lowest of 2014. So far,
the Oil Ministry has earned $7.513 billion a month, up from 2013’s average of
$7.435 billion.
Iraq’s exports can be expected to continue to fluctuate over
the coming months. Bad weather, maintenance work, bottlenecks, and other issues
continue to affect the industry. Fortunately production continues to increase.
On the other hand, major infrastructure work is years behind schedule
threatening long-term output. This is symbolic of Iraq itself. The country has
huge room for growth, but because of the lack of security and the bureaucracy this
potential may never be realized.
SOURCES
Iraq,
Ali Abu, “Exports reverse three-month slide,” Iraq Oil Report, 10/3/14
Lando,
Ben, Iraq, Ali Abu, al-Najar, Kamaran, “Exports lag due to violence,” Iraq Oil
Report, 9/5/14
Al
Mada, “Iraq’s oil exports rise to $ 7.8 billion achieved in July,” 8/5/14
New
Sabah, “Iraq’s oil exports decline in August,” 9/20/14
Republic of Iraq Ministry of Oil, “Iraq Crude Oil Exports – August
2014,” 10/4/14
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