| 2008: Iraq claims to have the largest proven oil reserves on Earth |
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May 21, 2008 Iraq sharply lifted the official size of its oil reserves yesterday after new data suggested they could exceed Saudi Arabia's and be the largest in the world. Iraqi Deputy Prime Minister Barham Salih said new exploration showed his country had the world's largest proven oil reserves, with as many as 350billion barrels. The figure is triple the country's present proven reserves and exceeds that of Saudi Arabia's estimated 264billion barrels of oil. Mr Salih said the new estimate was based on recent geological surveys and seismic data compiled by "reputable, international oil companies ... This is a serious figure from credible sources". The Iraqi Government has yet to pass an oil law to allow foreign companies to invest. Mr Salih said the delay was damaging Iraq's ability to profit from oil output, robbing the country of potentially huge revenue. With oil selling for more than $US125 ($130) a barrel and demand rising, Mr Salih was frustrated that Iraq still struggled to establish a regulatory framework. "There is a real debate in the Government and among political leaders about the type of oil-management structures we should have. I am for liberalising this sector and allowing the private sector to come in to develop these vast resources." BP, Exxon Mobil, Chevron, Royal Dutch Shell and Total have been queuing for rights to exploit Iraqi reserves. Mr Salih confirmed Iraq was negotiating the outlines of two-year deals with some companies. He was optimistic that a draft law could be approved in the near future. "We need to recognise after so many decades of mismanagement of the oil industry that we need to call a spade a spade," he told a group of delegates at the World Economic Forum in Sharm el-Sheikh, Egypt. "We can regulate it, but we need private investment to develop Iraq's production capacities," he said. Iraq was pumping 2.5million barrels of oil a day at present, earning about $US70billion in revenue this year, he said. The oil price bounced back to record highs yesterday when OPEC refused to increase supply following Saudi Arabia's promise to the US that it would provide an extra 300,000 barrels a day. In New York, the price of light, sweet crude for June delivery rose from $US125.92 a barrel to $US126.35. In London, Brent crude for July delivery was up 82 US cents at $US125.81 a barrel. Source: The Times |