[babystrangeloop]

$this->bbcode_second_pass_quote('', '[')b]Iraq begins pumping oil to new Gulf terminal
AFP / February 12, 2012

FAW, Iraq - Iraq began pumping oil on Sunday to the first of five floating terminals in the Gulf in a move that will increase its export capacity by 850,000 barrels per day.

Prime Minister Nuri al-Maliki symbolically opened the valve of a pipeline that runs from Iraq’s southern oil fields to the port of Faw, 535 kilometres (332 miles) south of Baghdad, and then on to the terminal.

Iraq launched a programme in 2007 to increase its oil export output. It envisages the construction of five floating offshore terminals in the Gulf.

The other four floating terminals are due to be operational by the end of 2013. So far the project has cost $1.5 billion. ...

[babystrangeloop]

$this->bbcode_second_pass_quote('', '[')b]Iraq opens new oil export terminal in Persian Gulf
Associated Press / February 12, 2012


Photo credit: AP | Iraq's Prime Minister Nouri al-Maliki, right, symbolically opens the valve of a new oil export terminal in the Persian Gulf, southern Iraq, Sunday, Feb. 12, 2012. Iraq has opened the taps at a new oil export terminal in the Persian Gulf in a vital step to bringing revenue for reconstruction after decades of war and international sanctions. (AP Photo/Nabil al-Jurani)

[Cog]

300,000 barrels is a flood?

Wow things are more desperate than I thought.

[babystrangeloop]

These are live charts, watch them change over the course of the next month or two.

When Libya gets back to normal it will put another million barrels a day out:


Iraq production is increasing over time:

[dorlomin]

Price goes down high cost producers go out of business. Look at the way shale gas shaped up.

[Pops]

Iraq is floating on a sea of oil, I hope we get something for our blood and trillions

[JohnRM]

At this point in time, a small increase in exports, such as that mentioned above is unlikely to offset the coming of peak driving season, during the summer. The mild winter, however, may have left us with a small glut of heating fuels and therefor production of gasoline may increase beyond we may have otherwise expected, placing downward pressure on prices when combined with increased exports. However, as stated, this is likely to lead to a cessation of operations recovering unconventional oil if this trend can be sustained, meaning any price decrease would either only be temporary or minute, in proportion to overall prices.

[SeaGypsy]

Leading to the rude shock coming: a dead 'driving season' in the USA with no subsequent price destruction. If my low WTI price in the late $70's is correct, it will not be because of 300,000 barrels + in Iraq or a slack summer in the USA/ EU. If that's all the downside WTI won't go under $88.00. My bet is on something worse. I would be happy to lose on this basis.

[ian807]

$this->bbcode_second_pass_quote('TheAntiDoomer', 'S')OOO CORNY!!!

[sjn]

So everybody else is okay with the premise of a new export facility producing a flood of new oil? Is there evidence Iraq has wells idle for lack of export capcity?

[Pops]

I don't think there's any doubt Iraq has oil. In 2010 they signed contracts equivalent to 10Mbd... eventually.

It won't be a flood of course but maybe .3-.5Mbd increase for many years ain't nothing to sneeze at.

Here from TODs Megaprojects post I linked elsewhere:



One of the stumbling blocks noted was export facilities.

.

[dinopello]

This will be interesting to watch.

Why exactly did Saddam invade Kuwait if he was sitting on that much oil ?

[Pops]

I think traditionally Kuwait "was" Iraq before colonialism and then us wanting a puppet.

The reason Saddam invaded Kuwait was that though iraq sits on 95% of the Ramulia (sp) field, Kuwait was "slant-drilling" it out from under him.

[JohnRM]

The real question is; Can Iraq ramp up production fast enough to cover the increases in global demand, the decline of oil fields, elsewhere, and the increases in domestic demand, in OPEC member nations? I strongly suspect the answer to be, 'no.' And still, many of these OPEC nations are highly unstable, especially Iraq. If Iraq is to join Saudi Arabia as the keystone of the global oil trade, we are taking a serious risk in doing that. The West is going to have to be ready and willing, at the drop of a hat, to send troops in to preserve the flow of oil in the event that the government falls apart. I am not sure just how much political capital exists for such an action.

[vision-master]

Maybe it's time we learn to live with less?

A Universal Message

[Kristen]

We borrowed trillions for this you know.

[M_B_S]

Russian Oil Boom’s End
Feb. 20 (Bloomberg) -- Russia’s 12-year oil boom is nearing its peak, forcing the next president to decide whether to cut taxes and revive production or use the windfall from $100 oil to boost public spending and quell mounting unrest.

As Vladimir Putin campaigns for a second stint in the Kremlin, the nation’s existing fields are losing pressure and oil companies OAO Rosneft, OAO Lukoil and TNK-BP say production taxes give little incentive to invest. Since Putin first became president in 2000, crude output has grown 57 percent to 10 million barrels a day, surpassing Saudi Arabia and flooding the state treasury.

“The cream has been skimmed off the top,” said Leonid Fedun, the billionaire deputy chief executive officer of Lukoil, Russia’s second-largest oil company. “Further steps require taxes based on different principles,” or production will start falling within three years, he said.

http://www.businessweek.com/news/2012-0 ... nergy.html
***********************************************

Bad news are good news..... or not?

40% of Germanys oil imports comes from Russia
*****************
Dejavu:
http://news.bbc.co.uk/2/hi/6240473.stm

Russia oil row hits Europe supply
**************
We allways knew...

PEAK OIL!

M_B_S

Look here:
http://mazamascience.com/OilExport/

[Mesuge]

The 2000s were one of the very brief mini periods of stability and relative prosperity even for the ordinary russian people in history, similarly to the brief era of Khrushchev at the turn of 1950/60s. Although russians are somewhat accustomed to a huge catastrophe comming in almost every single generation since the start of time, their chances against the chindians in the post PO situation are not very rosy. Assuming the terminal hegemon of the past the US will be more preoccoupied with internal meltdown at that point aka the "war of southern agression/secession partII ".

[dissident]

Contrast this to the coverage of the US oil situation. You would think that oil production in the US is increasing. Don't expect Russian oil production to change as quickly as that of Yemen. The US is a better analogue.

[SilentRunning]

Where's that Russian "abiotic oil theory" when they need it???