Yippee – another 100 billion barrels of oil found in Iraq

I actually went to the website of IHS and found the underlying press release. It’s transparently an attempt to sell their maps to oil producers seeking new oil fields. While IHS is a respected player in the industry, and is known to have one of the most extensive proprietary databases on world oil fields, it is a lot harder to gauge the reliability of this new publication. Iraq has been largely inaccessible and unexplored for most of the past 25 years, and the situation has not really changed in the past few years… While I have no doubt that IHS has been able to put its hands on data on known oil fields, I just don’t see how their number for additional resources is anything other than a marketing coup based on wild-assed guesses, as they themsleves admit:

“The Iraq Atlas estimate of up to another potential 100 billion barrels of oil reserves is largely based on the establishment of new play concepts in the Western Desert of Iraq, which have been generated from a recent study of the Western Arabian Platform. The Western Desert of Iraq is widely regarded as being substantially under explored with only one commercial discovery in the region largely because Iraq has had a surplus of oil to date and little incentive for exploration.”

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