Iraq’s Deputy Prime Minister, Hussein al-Shahristani, addressed a conference in Baghdad where he revealed that the country’s oil production had broken the 3 million bpd threshold for the first time in three decades.
Years of sanctions, corruption and warfare had taken their toll on Iraq’s oil infrastructure and consequently its output. It has only really been in the nine years since the US-led invasion of the country and subsequent removal of Saddam Hussein that the Iraqi oil industry has found time to recover.
Though breaking the 3 million bpd barrier is a significant step forward, Iraq still has a long way to go in terms of infrastructure development. According to Opec, the country’s average daily output for last month was approximately 2.68 million bpd, with production rates often being constrained by a lack of export facilities.
Solutions to this problem, however, are already on their way. Last month, Baghdad announced the opening of a new Single Point Mooring export outlet, which is expected to increase production by 300 000 bpd. The delay in the facility's operational start has been attributed to bad weather.
A successful Iraqi oil industry would also bring benefits to the global economy and reduce pressure on other suppliers, such as Saudi Arabia, as they struggle to make up the short-fall caused by international sanctions on Iranian oil exports.
Iraq has long term production goals of 12 million bpd, though analysts debate whether or not this is achievable.