Iraq to Drill More than 3,500 Wells to Produce 10 Million Barrels Per Day of Crude by 2020
Released February 28, 2013 | DELHI
Researched by Industrial Info Resources (Delhi, India)--Iraq is set to drill more than 3,500 wells in the next seven years to produce 10 million barrels per day of crude by 2020. The country is currently producing 3.35 million barrels per day of crude, which is expected to see a threefold increase during 2013 till 2020.

According to an estimate, Iraq will produce 6 million barrels per day of crude by 2016; however, a more conservative scenario would see crude production increase to 5 million barrels per day by 2016, compared to the current production at 3.35 million barrels per day in the country and another 1 million barrels per day produced in the Kurdistan region of Iraq. The scale of opportunity under a constrained production scenario is likely to remain high, with more wells to be drilled to meet the growing crude demand.

Crude production in Iraq surged by 650,000 barrels per day this year to reach 3.35 million barrels per day, which is considered the biggest annual gain in 14 years. The state plans to boost its output to an average 3.7 million barrels per day in 2013; at some point in the year, it will match 3.8 million barrels per day, the production record of 1979.

Iraq is potentially rich in energy assets. The potential scale of the Iraqi oil and gas sector is unprecedented, and it could offer a major opportunity for the drilling and the oilfield service industry. A number of new oil and gas fields have been discovered recently, for which the reserves are expected to be announced shortly.

Iraq''s oil and gas fields and ports have deteriorated over the years due to war, neglect, internal conflict, and international sanctions. Between now and 2035, the war-torn country will have to invest more than $530 billion in infrastructure to reach the targeted production levels.

Due to the ongoing growth in oil production, the world markets now are looking to Baghdad to play a major role in maintaining oil-supply and moderating the price of oil globally in the years ahead. 64B13AE69F17EEDD0A652D00C.wolf