Oil output has doubled over the past decade, putting Iraq to become the world's fourth-largest producer by 2030. They would trail only The US, Saudi Arabia and Russia. However, they are having a hard time finding water sources to produce their oil. This means that their production rates will struggle and continue to struggle if they can't find something to do about it. Iraq would need to produce an additional 3 million barrels a day of water in order to reach their goals.
They already use 5 million barrels of water a day to ensure there's enough pressure in the underground reservoirs to extract the oil and it needs as much as 1.5 barrels of water for every barrel of oil.
However, and more interestingly, they rely on imports from neighboring countries for 70% of the water it consumes and even more frightening, the River levels have fallen by up to 40% in the last 20 years.
What do you think Iraq should do and what can they do? Is there a solution? https://www.cnn.com/2019/04/25/business/iraq-oil-water-shortage/index.html
1 comment:
At the same time this is happening President Trump is urging foreign nations to stop being reliant on Iraqi oil. Oil output is a key economic driver for the Iraqi economy and any decrease in supply and demand would hurt them. Its interesting to think that a lack of water is the biggest problem they face with oil production. I guess they could make an agreement with another nation to lower their oil costs to them in exchange for more water. But with constant pressure from the United States for others to boycott Iraqi oil, this could pose a problem.
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