Given the ethnic turmoil in Iraq triggered by ISIL’s recent seizure of towns in Iraq’s North and West it is uncertain how this will impact on oil production in the Shia controlled South, from where the bulk of Iraq’s oil exports come from. At present oil exports from Basrah’s new oil terminals do not seem to be affected by the unrest but this can change. We don’t know what is going to happen, especially if this conflict widens the proxy war between Saudi Arabia and Iran which was hitherto limited to Syria (where oil production had peaked). It would be prudent for governments which are still planning new oil dependent infrastructure like motorways and airports to shelve these plans and prepare for oil shortages instead. Almost a year ago I wrote this article: 9/8/2013 Iraq crude oil exports stall amid pipeline attacks http://crudeoilpeak.info/iraq-crude-oil-exports-stall-amid-pipeline-attacks This post is an update. 12/6/2014 […]