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Military Response to Paris Terror Attacks Could Hit Iraqi Oil Production

The West’s response to deadly terror attacks in Paris may generate risk to one quarter of Iraq’s oil production. Although the deadly terror attacks in Paris Nov. 13 has little direct impact on the global oil industry, the West’s military response put a quarter of Iraq’s supply in the line of fire. Analysts at Raymond James (RayJa) said in a Monday note to investors that throughout the conflict with Islamic State (IS) during recent years, impact on oil supply has been negligible. The majority of oil production – between 1 million and 4 million barrels per day – is located far south of the fighting. Airstrike maneuvers are largely tactical and haven’t impaired supply. However, if the West increases its firepower with ground missions, oil infrastructure might be in the way. “The only scenario we can envision that could cause disruptions is an all-out ground assault against IS-controlled territory. […]

Posted On : Published By : Tom Whipple
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Iraq: Kurdish Forces Take Much Of Sinjar

Kurdish peshmerga fighters have seized a silo, cement factory, hospital and numerous public buildings in Sinjar, Iraq, and are now in the process of clearing the area of Islamic State militants, the Kurdistan Region Security Council said Nov. 13, Reuters reported. Kurdish forces also managed to take a key stretch of road leading to the Islamic State stronghold of Baj. Kurdistan Regional Government President Massoud Barzani held a press conference near Sinjar declaring the success of the operation, congratulating the peshmerga as well as the city’s Yazidi minority. He also announced plans to work with Baghdad to convert the district of Sinjar into an independent province within the federal structure of Iraq. The Sinjar offensive, which began Nov. 12 with the goal of cutting off a key Islamic State supply line , involved 7,500 Kurdish fighters supported by U.S. and coalition advisers directing airstrikes from behind the lines. The […]

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Iraq Central Bank Sees Foreign Reserves at $60b at Year’s End

OPEC’s second-biggest producer was hurt by the slump in oil revenue as well the war with Islamic State militants Iraq’s foreign currency reserves will total about $60 billion by the end of 2015, higher than the International Monetary Fund predicts and at a level sufficient to maintain the dinar’s buying power, central bank Governor Ali Mohsen Ismail said. Reserves are still sufficient to cover six months worth of imports, despite the decrease in government revenue due to the drop in oil prices, Ismail said in a statement on the central bank’s website Tuesday. Gross foreign assets with the central bank stood at $58 billion at the end of September, according to official data. The IMF sees reserves reaching $50 billion by year-end, Ismail said, without explaining why his projection is more optimistic. OPEC’s second-biggest producer was hurt by the slump in oil revenue as well the war with Islamic […]

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Multiple dead in Kurd-Hashid fight in Tuz

Smoke rises during a firefight between al-Hashid al-Shabi forces and Peshmerga fighters in Tuz Khurmatu on Nov. 12, 2015. (ALI MUKARREM GARIP/Anadolu Agency/Getty Images) Deadly fighting broke out Thursday in the flashpoint town of Tuz Khurmatu between Kurdish security forces and al-Hashid al-Shabi militiamen, threatening to shatter a fragile alliance among fractious groups nominally united against the Islamic State (IS) organization.In sustained battles, both sides have used small arms, and Hashid militiamen say they used rocket propelled grenades (RPGs) to attack Kurdish security forces guarding a hospital. Multiple people have been killed on all sides – Ku… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Posted On : Published By : Tom Whipple
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Dozens of IS militants killed in airstrikes near Ramadi

Iraqi security forces celebrate during fighting with Islamic State militants in Tikrit in northern Iraq, on April 1, a day after the Iraqi Prime Minister Haider al-Abadi declared victory in the weeks-long battle to retake the strategic city from the IS. Wednesday, more than two dozen Islamic State militants were killed in a coalition airstrike in an area west of Ramadi as Iraqi forces prepare to take back the city. File photo by Alaa mohamed/UPI RAMADI, Iraq, Nov. 12 (UPI) — More than two dozen Islamic State militants were killed in a coalition airstrike in an area west of Ramadi as Iraqi forces prepare to take back the city. Maj. Gen. Ali Ibrahim Daboun told IraqNews.com 25 members of the IS — also known as ISIS, ISIL and Daesh — died in the air attack about 100 miles west of Ramadi, the capital of western Iraq’s Anbar province. The […]

Posted On : Published By : Tom Whipple
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With Ramadi encircled, Iraqi forces brace for urban warfare

Iraqi forces appear better positioned than ever to launch an offensive against Islamic State militants controlling Ramadi, now that months-long efforts to cut off supply lines to the city are having an effect, but plenty of risks remain. The fall of Ramadi, the capital of Anbar province, to the group in May was the biggest defeat for Iraq’s weak central government in nearly a year, dampening its hopes of routing the Sunni militants from the country’s north and west. Retaking the city of 450,000 would provide a major psychological boost to Iraqi security forces, who have mostly collapsed in the face of advances by Islamic State, which last year seized a third of Iraq, a major OPEC oil producer and U.S ally. The ultimate goal for Iraqi forces is to break Islamic State’s grip over its main stronghold Mosul, the biggest city in the north. Critical momentum is needed […]

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OPEC Challenges Shale Afresh as Iraq Crude Floods Gulf of Mexico

(Bloomberg) — OPEC’s latest challenge to U.S. shale oil producers would be about two miles long, lined end to end, and weigh almost 3 million metric tons. It’s due to reach American ports this month. Iraq, the fastest-growing producer within the 12-nation group, loaded as many as 10 tankers in the past several weeks to deliver crude to U.S. ports in November, ship-tracking and charters compiled by Bloomberg show. Assuming they arrive as scheduled, the 19 million barrels being hauled would mark the biggest monthly influx from Iraq since June 2012, according to Energy Information Administration figures. The cargoes show how competition for sales among members of the Organization of Petroleum Exporting Countries is spilling out into global markets, intensifying competition with U.S. producers whose own output has retreated since summer. For tanker owners, it means rates for their ships are headed for the best quarter in seven years, […]

Posted On : Published By : Tom Whipple
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OPEC Challenges Shale Afresh as Iraq Crude Floods U.S. Market

OPEC’s latest challenge to U.S. shale oil producers would be about two miles long, lined end to end, and weigh almost 3 million metric tons. It’s due to reach American ports this month. Iraq, the fastest-growing producer within the 12-nation group, loaded as many as 10 tankers in the past several weeks to deliver crude to U.S. ports in November, ship-tracking and charters compiled by Bloomberg show. Assuming they arrive as scheduled, the 19 million barrels being hauled would mark the biggest monthly influx from Iraq since June 2012, according to Energy Information Administration figures. The cargoes show how competition for sales among members of the Organization of Petroleum Exporting Countries is spilling out into global markets, intensifying competition with U.S. producers whose own output has retreated since summer. For tanker owners, it means rates for their ships are headed for the best quarter in seven years, fueled partly […]

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Occidental plans Iraq exit

South Oil Company workers look toward the flares in the Zubair oil field on Jan. 21, 2010, the day before Eni, Occidental and Kogas signed the contract to develop the field. (ESSAM AL-SUDANI/AFP/Getty Images) Occidental Petroleum is planning to withdraw from the Zubair oil field project – the third international oil company to leave the country in the past three years.Multiple officials either involved in the Zubair project or familiar with the departure process have confirmed the exit is underway. Occidental’s exit appears to be part of a broader strategy, publicized by the company, to reduce its exposure to the region.The Oil Ministry has to formally sign off on the request and the 90-day p… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Posted On : Published By : Tom Whipple
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Iraq Oil Partners Seek Contract Changes to Boost Output

International oil companies could boost production in Iraq beyond current targets if production contracts were changed to give more incentives for investment, according to BP Plc and Royal Dutch Shell Plc. Companies working in the country have proposed that the government change contracts from the current service-fee model to be closer to production sharing agreements, Michael Townshend, BP’s regional president for the Middle East, told reporters in Abu Dhabi on Tuesday. The suggestions were made earlier this year amid talks about development budgets needed to operate Iraq’s oil fields next year, he said. Shell would need “a different commercial balance” to achieve full potential for its development of the Majnoon oil deposit, Maarten Wetselaar, the company’s executive vice president for integrated gas, told reporters in Abu Dhabi. “It’s a bit of an affront to its potential to only produce 225,000 barrels a day from it, you could double or […]

Posted On : Published By : Tom Whipple