Decline in Oil Output Dims Iraq’s Recovery

As U.S. financial aid winds down, concerns grow, with no quick turnaround in sight.

Iraqi oil production fell by 8% last year, calling into question the nation’s ability to support itself and fund reconstruction efforts as U.S. assistance is scaled back.

A sharp decline near year’s end left average daily production at half the 3 million barrels envisaged by U.S. officials at the outset of the war in 2003. Prospects for improvement this year are slim, many experts say.

..”There is no instant turnaround,” said Paul Horsnell, energy analyst with Barclays Capital in London. “It could take five years, six years or seven years.”

..”We don’t see any foreseeable improvement in security this year,” said Neil Partrick, senior analyst at Economist Intelligence Unit in London.

Los Angeles Times