Iraqi oil may rival Saudi Arabia

NEW YORK (CNNMoney.com) — Iraq’s ravaged oil industry is on the verge of a major reconstruction and experts now believe that by the decade’s end it could rival the world’s top oil producers.

But major challenges lie ahead.

Iraq’s success depends in large part on a mosaic of international investments.

The oil ministry has awarded contracts to at least a dozen firms from around the globe to develop its oil fields and boost production in the next seven years to over 11 million barrels a day.

That’s a five-fold increase, and would put it on par with top producers Russia and fellow OPEC member Saudi Arabia.

“They have the oil in the ground,” said James Placke, a senior associate at Cambridge Energy Research Associates who specializes in the Middle East. “It’s getting it out that’s always been the problem.”

CNN