Iraqi Oil Production In Slow Decline In 2010

Iraq's oil industry has seen a slow decline this year. In December 2009 the country produced 61.3 million barrels. That has not been achieved since then. In January output dropped to 59.7 million barrels, then 57.9 million in February, 57.1 million in March, before hitting a yearly low so far of 53.0 million barrels. Afterward, production went up and down to 58.7 million in May, 54.7 million in June, before reaching 56.3 million in July. Profits have dropped as well. In December and January Iraq earned $4.4 billion each month. That dropped down to $4.2 billion in April even though a barrel of Iraqi crude was selling for $79.66, the highest price in nearly two years. By June profits had declined to $3.8 billion, before slightly recovering to $4.0 billion in July.

This is actually nothing new. Since 2004, oil production has continuously fluctuated, slightly rising and falling every couple months due to the weather, bottlenecks, maintenance, and attacks upon the northern pipeline. Average yearly production however, has always stayed around 2 million barrels a day because the industry is at capacity. That means, despite the decline in recent months, by the end of 2010 output will probably be close to previous years. More importantly, Iraq is looking to have far larger profits this year than last because oil prices have recovered from the affects of the world recession.

Monthly Earnings/Prices/Total Production

Month	Total Oil Earnings	Price Per Barrel	Total Oil Production
Dec. 09	$4.4 bil	$73.39	61.3 mil bar
Jan. 10	$4.4 bil	$73.97	59.7 mil bar
Feb.	$4.2 bil	$73.40	57.9 mil bar
Mar.	$4.3 bil	$76.20	57.1 mil bar
Apr.	$4.2 bil	$79.66	53.0 mil bar
May	$4.3 bil	$73.85	58.7 mil bar
Jun.	$3.8 bil	$71.10	54.7 mil bar
Jul.	$4.0 bil	$71.21	56.3 mil bar

Yearly Average Oil Production
2004 2.25 million barrels/day
2005 2.07 million barrels/day
2006 2.11 million barrels/day
2007 2.11 million barrels/day
2008 2.41 million barrels/day
2009 2.40 million barrels/day

SOURCES

Aswat al-Iraq, "Iraq's oil revenues exceeds $4b in July," 8/24/10
- "Iraq's oil revenues up by $300m in Dec. 2009," 1/23/10

Hafidh, Hassan, "Iraq July Oil Exports -0.16% On Month At 1.820 Million B/D – Official," Dow Jones 8/9/10