Oil Revenues Up In Iraq Despite Decrease In Output

As reported before, Iraq’s oil output for 2009 was below that of 2008, but the country’s revenues were up compared to the beginning of 2009. Last year, Iraq averaged 2.02 million barrels a day in total production, and 1.59 million barrels a day in exports, compared to 2.41 million barrels a day in production in 2008, and 1.84 million barrels a day in exports. That was the first time in four years that annual production and export averages did not increase.

Comparing 2008 to 2009 Avg. Oil Output
2008: 2.41 mil/bar/day production, 1.84 mil/bar/day exports
2009: 2.02 mil/bar/day production, 1.59 mil/bar/day exports

Despite that setback, Iraq earned more money at the end of 2009 than the start. In January 2009, Iraq earned $2.1 billion. By December, the country brought in $4.4 billion. Oil exports went up and down during the year, but the price of a barrel of Iraqi crude steadily increased. In January 2009, a barrel went for $36, but by December it was worth $73.39. That meant even though exports saw a slight decline from 1.92 million barrels a day in November to 1.91 million barrels in December, Iraq still earned more money going from $4.2 billion in November to $4.4 billion in December.

Iraq Oil Earnings And Price Of A Barrel Of Crude – 2009
Jan. Earned $2.1 billion, $36 per barrel
Feb. Earned $1.9 billion, $37 per barrel
Mar. Earned $2.4 billion, $44.21 per barrel
Apr. Earned $2.6 billion, $49.21 per barrel
May Earned $3.4 billion, $51-$57 per barrel
Jun. Earned $3.7 billion, $64.37 per barrel 
Jul. Earned $4.0 billion, $64.42 per barrel
Aug. Earned ?, $68.80 per barrel 
Sep. Earned $3.8 billion, $66.05 per barrel
Oct. Earned $4.1 billion, $71.94 per barrel
Nov. Earned $4.2 billion, $73 per barrel 
Dec. Earned $4.4 billion, $73.79 per barrel

Iraq needs to earn as much money as possible because petroleum accounts for the vast majority of its government revenue. This is putting pressure on the Oil Ministry to boost production, but 2009 was a disappointing year, as increased security did not lead to increased output. OPEC is trying to set international petroleum prices at around $70 a barrel right now so upping output may be the only way Iraq can expect to earn more in this new year.

SOURCES

Associated Press, “Iraq Reports Increase in Oil Exports in December, but Revenues Drop,” 1/26/09
- “Iraq’s Oct. oil exports drop due to attacks,” 11/22/09
- “Iraq’s oil exports down in February,” 3/3/09
- “Iraq’s oil exports inch up in January,” 2/1/09

Aswat al-Iraq, “Increase in oil exports contributes to budget balance – ministry,” 6/2/09
- “Iraq earns $4.205bn in oil revenues in November 2009,” 12/19/09
- “Iraq’s oil exports in Oct. reach 58.2m barrels,” 11/22/09
- “Iraq’s oil exports reach $3.17m in June 2009,” 7/22/09
- “Iraq’s oil revenues increase in April 2009,” 5/23/09
- “Iraq’s oil revenues up by $300m in Dec. 2009,” 1/23/10
- “Oil exports top 50m barrels in March,” 4/22/09
- “Oil ministry says Iraq’s exports hit $1.9b in Feb.,” 3/28/09

Bureau of Near Eastern Affairs, “Iraq Status Report,” U.S. Department of State, 1/13/10

DiPala, Anthony, “Iraq Oil Export Income Rose 8.2% to $2.69 Billion in April,” Bloomberg, 5/25/09

Dow Jones Newswires, “Iraq Sep Oil Exports -2.7% On Month At 1.956 Million B/D – Ministry,” 10/27/09

Hafidh, Hassan, “UPDATE: Iraq April Oil Exports 1.82M B/d, Up 0.33% On Month,” Dow Jones, 5/3/09

Lando, Ben, “Iraq oil exports drop in February,” Iraq Oil Report, 3/25/09
- “Iraq oil exports, revenue up,” Iraq Oil Report, 6/29/09
- “More than $4B in July oil sales,” Iraq Oil Report, 8/26/09
- “Oil exports and revenue increase,” Iraq Oil Report, 7/29/09

Reuters, “TABLE-Iraq key economic indicators,” 11/22/09
- “UPDATE 1-Iraq’s oil exports rise to 2.037 mln bpd in July,” 8/2/09

Salaheddin, Sinan, “Oil Ministry: Iraq’s oil revenues drop,” Associated Press, 4/5/09