Iraq Output Could Double To 4mbpd In 5 Yrs

Iraq Oil Output Could Double To 4M Barrels A Day In 5 Yrs - IHS

by Lananh Nguyen
Apr 18, 2007
LONDONxxx

Iraq's oil production could double to 4 million barrels a day in the next five years if the security situation stabilizes in key producing regions, data provider IHS Inc. (IHS) said Wednesday. xxx

"There is a very straightforward path to improving production capacity (in Iraq)," said Ron Mobed, president and chief operating officer of IHS's energy segment. xxx

Mobed said that pipeline repairs, better reservoir management and infrastructure investment could allow the country to double its oil and gas output, unless violent conflict there escalates further. xxx

"As for the investment required, the Iraqi Ministry has estimated that it could take $20 (billion)-$25 billion depending on the level of repair and modernization needed to double current production levels," Ed Mattix, IHS vice president of corporate communications, said in an e-mailed statement. xxx

In its new study of Iraq's oil reserves, IHS estimated that the country has 116 billion barrels of proven and probable oil reserves, the third highest in the world. Iraq's western desert potentially held an additional 100 billion barrels of oil reserves, IHS added. xxx Aside from the political and security risks, investment in Iraqi oil was appealing due to the country's geology and its commercial terms, Mobed said. xxx

This year, the Iraqi government is expected to launch a bid round for 65 exploration blocks, and 78 fields are also to be offered for development, according to IHS. xxx

Mohammed Zine, IHS regional manager for the Middle East, said: "The cost to produce oil in some Iraq fields is less than $2 per barrel according to our estimates and investments involved in developing the fields are minimal." xxx

Prior to Iraq's war with Iran in 1980, the country had a production capacity of 3.6 million barrels of oil a day. It was 3.2 million barrels a day before the first Gulf War in 1990 and 2.7 million barrels per day before the start of the most recent conflict. xxx

© 2007 Dow Jones Newswires.

Daniel Yergin, CERA, and the new O-15

Ashok Dutta
CanWest News Service
Friday, March 23, 200

CALGARY -- Canada has been ranked fifth in a new global oil grouping unveiled Thursday by an independent energy analyst in testimony in Washington to the U.S. House Committee on Foreign Affairs.

Called Oil-15, or O-15, the new order put together by Daniel Yergin, chairman of Cambridge Energy Research Associates, includes all OPEC states — barring Indonesia — and includes five others that have the highest potential to increase supplies by 2015. Besides Canada, they are Azerbaijan, Kazakhstan, Brazil and Russia. The group is projected to produce 72.7 million barrels per day, or 69 per cent of total global oil output.

“It is a straight forward grouping of producers that are planning major investments and do not necessarily have a political agenda,” Guy Caruso, administrator of Washington-based watchdog Energy Information Administration, said in an interview.

Saudi Arabia was ranked No. 1. Its output was forecast by Cambridge to grow to 14.3 million barrels per day from 2005 output of 12.7 million bpd. Russia was in the No. 2 spot, and was forecasted to see production grow to 11.5 million bpd from 9.6 million. Iran was No. 3, with output forecast to grow to 4.3 million bpd from 5.7 million bpd, and Iraq No. 4, with output forecast to grow to 5.5 million from 2.6 million.

Next came Canada, with production forecast to grow to 5.3 million bpd by 2015 from 3.5 million bpd in 2005.

“We will see a concentration of growth in liquid production capacity within the O-15,” said Yergin, who was asked to make the presentation on energy security.

“After two decades of working off excess capacity, global energy supply is now dominated by the growth challenge.”

Canada, with over $125 billion investments in the Alberta’s oilsands sector, is set to play a central role in meeting U.S. energy demand. Last year, the largest share of American’s energy imports came from Canada, Yergin said.

Greg Stringham, vice-president at the Canadian Association of Petroleum Producers, said the testimony is a recognition of Canada’s importance both now and in the future for delivering energy supplies.

“Canada is the most secure source and will continue to maintain its lead position,” he said.In 2006, Canada exporting 2.29 million bpd of crude oil to the U.S., accounting for 17 per cent of total imports. This was followed closely by Mexico at 13 per cent. Until a few years ago, Saudi Arabia was the principal supplier of Arabian Light and Super Light grades of crude to the U.S. The call on Canadian crude is likely to increase, if a statement issued Wednesday by Mexico’s Pemex on a 5.8 per cent dip in its proved oil and gas reserves is any indication.

However, from an energy security perspective, a question remains to what extent.

“From an energy security perspective, there will be a limit. But, it is still too early days to talk about it,” Caruso said.

Stringham felt that if the O-15 group were drawn up on a political-stability basis, Canada would have been on the top.

“The U.S. has made it amply clear they do not want us to sell our oil in the global markets and will take as much as we can offer. At the same time there will not be any pressure on Canadian producers to increase
supplies,” he said.

http://www.canada.com/nationalpost/financialpost/story.html?id=9d39ecf7-6796-4c16-8384-142807913ab8&k=32047

Canada ranked fifth in ability to increase oil production

IHS Acquires RapiData

Thursday, March 22, 2007

IHS Inc. has acquired the RapiData product, well known for its comprehensive well test, pressure and completions data for the Western Canadian Sedimentary Basin. IHS purchased RapiData from Rapid Technology Corporation of Calgary, Alberta, Canada.

RapiData is the only complete source of well test, pressure and completions data for Western Canada. IHS has been a partner with Rapid since 2003. IHS products AccuMap and Enerdeq use RapiData to provide exploration and production (E&P) companies desktop access to information used to evaluate reservoir pressures and well-flow rates, forecast flow and pressure declines, and estimate reservoir size.

"The acquisition of RapiData is consistent with the IHS strategy of providing superior information to E&P companies' desktops," said Ron Mobed, president and chief operating officer of the Energy segment of IHS. "The combination of existing IHS products and RapiData will allow E&P companies of all sizes to make informed, profitable decisions at all stages of a well's lifecycle and development. IHS is committed to a vision of transforming physical data sets into high-value, high-speed, on-demand digital data sets. The acquisition of RapiData represents a substantial step forward for that vision."

The Energy segment of IHS enables oil and gas companies worldwide to create and maintain best-in-class decision-making processes by providing and integrating essential exploration and production information, intuitive software and consulting services.

Rapid Technology Corporation is a privately held company that provides integrated software, data and engineering solutions for the oil and gas industry. Following the sale of its product line to IHS, Rapid Technology Corporation will be a holding company with an investment interest in publicly traded Rapid Solutions Corporation which is unaffected by the sale.

IHS is a leading provider of critical technical information, decision-support tools and related services to customers around the world. Its data and services are used primarily by the energy, defense, aerospace, construction, electronics, and automotive industries.

http://www.rigzone.com/news/article_pf.asp?a_id=42888