How Much Can Iraq Afford to Lose?

Amidst all the news of increased violence in Iraq, this week has seen many positive news stories, including a $700-million contract win for Daewoo at the Akkas gas field, and the shares of two oil explorers rebounding strongly.

But staying on energy matters, we cannot escape the continuing problem of reduced oil exports. Sabotage of the Kirkuk-Ceyhan pipeline, together with technical problems at the Southern ports, are keeping exports 500,000 barrels per day below budget.

That’s roughly $50 million in lost revenue every day, $1.55 billion every month, or $18.25 billion over the year — money that the Iraqi people cannot afford to lose.

Iraq needs a determined effort to solve these problems as a matter of urgency.

6 Responses to How Much Can Iraq Afford to Lose?

  1. Roger1 August 1, 2013 at 3:13 pm #

    I’ve never seen oil take weekends and holidays off – so the math here doesn’t work.If the losses are $50M/day that would be $1.52bn per month and $18.25bn annually.

  2. Editor August 1, 2013 at 3:37 pm #

    @Roger1: thanks, article amended accordingly