2012 October 26

The Master Resource Report  2012-10-26

IEA Iraq Energy Outlook

The CSIS Energy and National Security Program hosted Dr. Fatih Birol, Chief Economist and Director of Global Energy Economics at the IEA for a presentation IEA’s recent World Energy Outlook Special Report on Iraq.

Even given all the disruptions of the last decade Iraq still is the world’s third largest exporter of crude oil and controls what is probably the largest undeveloped conventional oil reserves in the world. During his presentation Dr. Birol outlines some of the stunning possibilities that Iraq could bring to the global oil markets.

One is the very low cost of this conventional crude. It can be brought to market for just a fraction of the cost of U.S. unconventional tight oil or Brazil’s deep water now under development off its coast.

But he brings up serious questions about whether it will be able to reach its ambitious plans given financial, political, security and infrastructure obstacles. An example given is that “in 2011, grid electricity could meet only 55% of demand.”

Dr. Birol presentation is proceeded by the Ambassador of Iraq, Jabir Habeb so his presentation begins at about the 15 minute mark in the video.

A PDF of Dr. Birol’s slides are available here.

Natural gas rig count

Gas rig count falls 11 more according to Baker Hughes report today. One year ago there were 934 rigs drilling for natural gas. The number is now down to 416, a drop of 55%. Yes they are more efficient today as many in the industry have stated many times, but are they that much more efficient?? Stay tuned the natural gas industry is in the process of running a real-time supply and demand market experiment.