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The article explores the prediction that oil production from Iraq will increase this year. Iraq has high hopes of increasing oil production in 2011. Industry experts however warn against such a hopeful outlook. They state that while the production may be increased, there are yet significant changes to be made in the oil industry of Iraq and to enhance the infrastructure. Such measures are necessary before any prominent rise in the oil producing capacity of Iraq. This is the outlook of industry experts, in spite of the fact that oil production from Iraq this year was way above the predicted estimates. The giants in the oil industry view this as a positive indicative of Iraq’s growth in the oil economy for future prospects. Iraq has successful upgraded its oil reserves raising the oil production to 143 billion barrels in the year 2010 as opposed to 115 billion barrels in the year 2006. By the estimates of the oil minister of Iraq, Abdul Karim al-Luaibi, oil production in Iraq will reach the level of three million barrels per day, by the end of the year 2011. Oil output from the Kurdish region is even more prominent. Initially, there was no existence of an oil and gas economy. Now various companies including multinationals are engaged in this region in the oil industry. The production has extended beyond local use and gone on towards exports. Around 200,000 bpd are produced from this region. Analysts are concerned that the chaos in Syria will put an edge to the oil industry among regional players and raise the level of competition. At the recent Annual Middle East Petroleum and Gas Conference held in Dubai, the opinion expressed was that Iraq still had a long way to go before realizing and optimizing its full potential in the oil industry. Politics and the current Iraqi government play a crucial role if Iraq is to realize its total oil producing capabilities. The constitution of Iraq requires that a new law be formed to monitor the oil economy by the new government. As of yet, no such law has been formed. Hope is rife that it will be passes in a few months. However, critics are doubtful and cynical of such an optimistic and what they consider naive view. Another crucial challenge that the oil industry in Iraq faces is a rundown infrastructure. While there are many hurdles for Iraq to develop its full potential, analyst also regard it as an opportunity to grow. Iraq has grand plans for raising its oil production. Its current ambition is to eventually export oil, all throughout the Gulf as well as re-open earlier eastern pipelines through Saudi Arabia. How Iraq's ambitious plans affect oil prices only remains to be seen. The increased output from Iraq may cause prices on oil to lower in the future. The freelancer is an experienced columnist in oil related fields, who frequently writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
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