Iraq's Revenues from Exporting Crude Oil are $88 Million a Day

[Noosa]

Iraq's Revenues from Exporting Crude Oil are $88 Million a Day

http://www.iraqdirectory.com/DisplayNews.aspx?id=452

[myranchretirement]

Iraq's Revenues from Exporting Crude Oil are $88 Million a Day

http://www.iraqdirectory.com/DisplayNews.aspx?id=452

So it's 2 billion a month instead of the previously thought 1.5 bil. Good news. They work approximately 340 days a year giving them 30 billion +- a year right now.

[axismundi]

Thats fantastic... :) Some day... (hopefully soon) that is 3-4x that :)

[MEALTICKET]

I wonder how much profit it is after the the cost for whom is drilling for this stuff

[TiredOfWork]

I wonder how much profit it is after the the cost for whom is drilling for this stuff
Yes, but don't forget that while they export a lot of crude, their refining capacity is very limited, and they IMPORT refined fuels. I think upgrading and expanding the refineries is a big key to huge profits.

[lordrazor1]

Yes, but don't forget that while they export a lot of crude, their refining capacity is very limited, and they IMPORT refined fuels. I think upgrading and expanding the refineries is a big key to huge profits.

Yes refining in their own house would definitly increase profits....just look at the shipping cost to have their export imported back to them...in a refined item.

[Blue_Horseshoe]

Yes, but don't forget that while they export a lot of crude, their refining capacity is very limited, and they IMPORT refined fuels. I think upgrading and expanding the refineries is a big key to huge profits.
Thanks for the article Noosa. I agree, TiredofWork. As the article states:

"He added that despite the rise in crude oil prices, Iraq is currently suffering from a huge problem, which is the importation of oil derivatives that reach half a million dollars a month in cost. This is due to the increase of the prices of crude oil and the lack of a refinery, especially as the global countries are short in refineries."

The article states that refining capacity increased to 17% in the latest period. So, Iraq would really be doing great if it can greatly increase its oil refining capacity. In doing so, Iraq would recieve more revenues(and lower imports) exporting the oil derivatives than it currently does in exporting just the crude and having to import the derivatives. :happy26:

[spectrans]

Iraq's refining capacity as of January 2004 was believed to be 587,500 bbl/d, compared to a nameplate capacity of 700,000 bbl/d. Iraqi refineries are estimated to be running at around 60% capacity utilization rates. Before the latest war, it was believed that Iraq needed to refine 560,000 bbl/d in order to produce 400,000 bbl/d of needed products for domestic consumption. In late April 2003, the Basra refinery restarted at 70,000 bbl/d, or half of its total capacity. As of November 2003, the 150,000-bbl/d plant (design capacity) was experiencing periodic stoppages due to electric power problems and insufficient crude oil supplies, reducing its output to around 125,000 bbl/d.

Overall, Iraq has 10 refineries and topping units, none of which were damaged during the March-April 2003 war itself. The largest refineries are the 310,000-bbl/d Baiji, 150,000-bbl/d Basra, and 100,000-bbl/d Daura plants. Prior to the war in March-April 2003, a lack of light-end products, low quality gasoline, and rising pollution levels because of a lack of water treatment facilities were some of the major problems faced by Iraq's refining sector. Following the war, significant investment will now be needed to perform refinery upgrades (Iraq had identified dozens of such projects prior to the war) and possibly to build new refineries. In February 2004, there were reports that Iraq was planning to offer tenders on two new refineries with a combined 280,000 bbl/d in capacity. The plants would be located at Mosul and at Msaib, south of Baghdad.

At the present time, problems with Iraq's refineries -- stemming largely from post-war looting and sabotage, plus power outages and illegal smuggling of products out of the country-- continue to force the country to import fuel oil for gasoline and liquid petroleum gas (LPG) from neighboring countries (Iran, Jordan, Kuwait, Syria, and Turkey). According to the UNJLC, as of late January 2004, "the Coalition and Ministry of Oil are continuing to import significant quantities of fuel to meet domestic demand. At present, 30% to 40% of overall fuel requirements are imported," with Swiss trader Vitol handling Iraqi gasoline imports from the Mediterranean. Current Iraqi LPG production capacity appears to be only about 25% of demand.

In early January 2004, the U.S. military announced that it was taking over fuel distribution in Iraq from Halliburton, after the U.S. government accused the company of overcharging for fuel deliveries by $61 million. Within Iraq, gasoline is generally sold for just 5-15 cents per gallon, while Halliburton reportedly was being paid $2.64 per gallon to import gasoline from Kuwait. In comparison, SOMO reportedly pays around 96 cents per gallon to import gasoline from Kuwait, while the Pentagon's Defense Energy Support Center pays $1.08-$1.19 per gallon.

Also as of late January 2004, the UNJLC was reporting that "production levels were stable in the country’s three major refineries," and that this had "helped stabilize the domestic fuel market, reducing the effect of panic buying and hoarding." The UNJLC added that "Baiji Refinery, the country’s largest, operated at an estimated 85% of capacity; Baghdad’s Daura Refinery is thought to have worked at full capacity; and Basra at 75% of capacity. Combined, these refineries process around 350,000-400,000 bpd of crude oil into refined products, out of the 600,000 bpd domestic requirement. Smaller refineries throughout the country may be processing up to a further 100,000 bpd." Overall, the UNJLC reports that, as of late January 2004, "availability of fuel products throughout Iraq [was] generally good. Gasoline (benzene) [was] available at most service stations with a limited black market. The long queues common in December [were] no longer evident.

http://www.flashpoints.info/countries-conflicts/Iraq-web/Iraq_briefing.htm