Iraq helps enormously?

Really?  Let’s look at some numbers.

According to the article, Iraq is producing 2.5 mbd and the Iraq government thinks it can add another 0.4 mbd by the end of next year (meaning the end of 2013).

According to the EIA (http://www.eia.gov/cabs/Iraq/Full.html), Iraq exported 1.8 mbd, or about 73% of its production of 2.4 mbd.  And, a good deal of those exports went to Europe (22%) and Asia (47%).

Oil exports from Iraq to the USA amounted to 0.41 mbd, or, 22% (see AER 2011http://  That’s actually down from to 0.63 mbd the USA imported from Iraq in 2008 and 0.79 mbd in 2001.

So, let’s consider the importance of that additional 0.4 mbd that may come online by the end of 2013.  If 73% get exported that’s down to 0.29 mbd, and if 22% that exported amount goes to the USA, that’s 0.064 mbd.

And how does this compare to the USA’s consumption rate?

Well, 0.064 mbd is 0.34% of the USA’s total consumption rate of 18.5 mbd in 2011 (http://www.eia.gov/dnav/pet/pet_cons_psup_dc_nus_mbblpd_a.htm).

And how much oil does the USA presently get from Iran?  Zero.

Helps?  Sure

Enormously? No

If Iraq ever does produce 10 mbd, the bulk of that oil will go to Asia, which has been the growing trend for at least the last decade.


- crash_watcher

18 Total Views 1 Views Today
Did you already share this? No? Share it now: