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Oil is a single bright source for improving Iraq’s future. In spite of sectarian bombardments and political affairs, the country’s oil industry is soaring one after another marvel. The country is looking forward to increasing production as western countries constrict sanctions on Iranian exports to relieve the global oil markets. As a result of vital port improvement and increased flow, Iraq’s oil production has increased exports up to 20% making it a producer of 2.5 million barrels of oil a day in 2012. On account of booming oil industry, Iraq is emerging as one of the leading crude producers in OPEC for the first time in decades. Iraq’s improving its oil production, increased crude production in Saudi Arabia and recovery of Libya’s oil industry have helped oil markets form high-ceilinged oil prices as well offered international company additional control over Iran when new sanctions will take effect in July 2012. David L. Goldwyn, the former State Department Coordinator for International Energy Affairs in the Obama administration, said: “Iraq can help enormously even if the country’s exports increase only half of the estimated volume by next year. This will minimise Iranian supplies in west followed by tighter sanctions. After Saddam Hussein regime, Oil offers above 95 per cent of the government revenues. It has undoubtedly modified the country’s infrastructure including the building of roads and the expansion of social services; in fact it has significantly reinforced the Shiite-led government's hand. It’s always true that success has its own turning points, which have started fuming in Iraq. A major issue over sharing of profits is growing as a big hurdle in the country progress. It has started fostering corruption and weakening democracy. Despite several hurdles, the government has announced that it will add an additional 400,000 barrels a day of production by 2013 as well it is determined to produce 10 million barrels a day by 2017. Michael Townshend, president of BP Iraq, said: “What the government is embarking on and the increase in production they are looking for under all of these contracts is unique in the world.” But, he cautioned, “Nobody has yet managed to increase oil production in their country to the extent Iraq is planning to. It's hugely ambitious, and it will take a lot of things to work correctly.” Oil company executives are very impressed by Iraq’s futuristic goal and believe that the country’s ambition will be accomplished in upcoming years. Kyles Humphrey is an experienced writer 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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