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In an interview with the media, IEA chief economist Birol said that Iraq’s oil production in the next 20 years may increase to two or three times the current level of 2.5 million barrels per day, which will ease the market’s concerns about shrinking supplies, and It may inhibit sharp price increases. IATA Chief Executive Officer Tanaka said that Iraq’s production will be an important factor in determining the future oil supply situation.
However, Birol said that in order to achieve the above output level, Iraq needs to repair the domestic infrastructure, solve the water shortage problem, and improve its turbulent security situation. If these issues are resolved, Iraq may become one of the few regions in the future to achieve net oil production growth.
Rising oil production in Iraq will change the pattern of the oil market
According to the “Wall Street Journalâ€, the International Energy Agency (IEA) recently stated that the recovery of Iraq’s oil production will change the global oil supply situation and will pose challenges to Saudi Arabia and other major oil-producing countries.