Iraq seeks to raise oil output ahead of global energy transition

Baghdad (IraqiNews.com) – Iraq seeks to boost oil production and optimize its reserves for revenue generation before a global energy transition potentially reduces oil demand. Iraq is adopting an approach that delaying the development of oil reserves may be less cost-effective than increasing output at the present time, according to Reuters. Oil constitutes approximately 90 percent of the revenue for the Iraqi government. The recent conflict and the resulting turmoil forced Baghdad to cut its daily output from over 4.2 million barrels to under 1.5 million barrels in May. This situation underscores the urgent need to increase production to recover the lost revenue. New investments worth billions of dollars from businesses such as British Petroleum (BP), TotalEnergies, and ExxonMobil have raised hopes that Iraq would be able to transform its massive oil reserves into long-term financial benefits. However, this approach raises concerns about a potential significant decline in global oil consumption in the years ahead. The main concern involves the potential for increased supplies from various producing countries, which could lead to a supply glut and a decline in oil prices. This is particularly relevant as global output is projected to rise by nearly eight million barrels per day by 2027, while the growth in demand is expected to be slower. The Iraqi strategy is based on the timing factor due to the uncertainties over when global oil demand will decline and whether producers can profit from their reserves prior to that time. The post Iraq seeks to raise oil output ahead of global energy transition appeared first on Iraqi News.