Foreign Oil Giants Wanted to Leave the Northern of Iraq
Posted: 08/14/2014 12:08:53 Edited: 08/14/2014 01:08:53 Clicks: 2843
Faced with the counterattack of ISIS in Iraq, Obama, the President of the U.S. authorized the U.S. Army to strike the northern of Iraq at the night of August 7, aiming at destroying the local base of ISIS.
The U.S. Army has already launched several air raids to the mountainous areas where ISIS occupies.
The northern of Iraq, especially the Kurdish region which is taken up by ISIS, is always the Iraqi oil town, where a batch of foreign oil giants aggregate, including Genel Energy Plc and British Afren Plc. According to the estimation of IEA, the daily oil output in the Kurdish region of Iraq is about 3.6 hundred thousand barrels. Among 1/3 of oil is used to export underground because Iraqi refuses all of other oil export channels in other regions except for Baghdad, the capital of Iraq.
For the U.S. Army starting to launch air raids to Iraq, those foreign oil giants fear that local deadlocked regional situation will be more complicated gradually. Nevertheless, Genel Energy Plc, the local largest oil manufacturer had already evacuated its own idle employees from the region. On the same day that Obama made a speech, the U.S. oil giants, Chevron and Exxon Mobil took the same precautionary measures as Genel for security consideration.
Meanwhile, Oryx Petroleum which is listed in Canada and British Afren Plc announced to stop operation in Kurdish region, besides evacuating employees in succession. On August 8, Oryx Petroleum showed clearly that it would reduce oil output in the future because the producing area was too close to battlefield.
On August 8, international oil forward price in NYMEX, the U.S. was 97.34 dollars per barrel, increasing by 0.42 dollars. Brent international oil price was 105.44 dollars per barrel, increasing by 0.85 dollars. David McColl, oil analyst of Morningstar states that if all of local oil manufacturers stop production, then it will not only have great impact on Iraqi daily export volume of oil, but also promote international oil price to rise.
The U.S. Army has already launched several air raids to the mountainous areas where ISIS occupies.
The northern of Iraq, especially the Kurdish region which is taken up by ISIS, is always the Iraqi oil town, where a batch of foreign oil giants aggregate, including Genel Energy Plc and British Afren Plc. According to the estimation of IEA, the daily oil output in the Kurdish region of Iraq is about 3.6 hundred thousand barrels. Among 1/3 of oil is used to export underground because Iraqi refuses all of other oil export channels in other regions except for Baghdad, the capital of Iraq.
For the U.S. Army starting to launch air raids to Iraq, those foreign oil giants fear that local deadlocked regional situation will be more complicated gradually. Nevertheless, Genel Energy Plc, the local largest oil manufacturer had already evacuated its own idle employees from the region. On the same day that Obama made a speech, the U.S. oil giants, Chevron and Exxon Mobil took the same precautionary measures as Genel for security consideration.
Meanwhile, Oryx Petroleum which is listed in Canada and British Afren Plc announced to stop operation in Kurdish region, besides evacuating employees in succession. On August 8, Oryx Petroleum showed clearly that it would reduce oil output in the future because the producing area was too close to battlefield.
On August 8, international oil forward price in NYMEX, the U.S. was 97.34 dollars per barrel, increasing by 0.42 dollars. Brent international oil price was 105.44 dollars per barrel, increasing by 0.85 dollars. David McColl, oil analyst of Morningstar states that if all of local oil manufacturers stop production, then it will not only have great impact on Iraqi daily export volume of oil, but also promote international oil price to rise.
