Analysis of the prospect of Entering Iraqi Oil Market
Iraq holds the world's third largest oil reserves base after Saudi Arabia and Canada, with 112 billion barrels of proven reserves and an estimated 100 billion barrels of undiscovered reserves, which provides great opportunities for western oil companies like Chevron. In this paper, we analyze the Iraqi oil industry in perspective of Chevron's plans to invest in the region. The paper is organized into three sections: history of Iraq oil industry, its current state after American and British invasion and the direction it's likely to head in the next couple of years.Looking back at the history of Iraqi oil, reports before April 2003 show that modernization was really needed. According to the Middle East economic survey, problems at Iraqi oil fields include: years of poor oil reservoir management; corrosion problems at various oil facilities; deterioration of water injection facilities; lack of spare parts, materials, equipment, etc.; and damages to oil storage and pumping facilities. 60% of Northern Oil Company's facilities in the northern and central Iraq were damaged during the Gulf War. Iraq utilized sub-st
While the job of getting Iraq's oil is already an enormous task that presents excellent long-term opportunities, handling the drastically different business cultures between the west and the Middle East is also a major challenge for western oil companies like Chevron. One thing is for certain though: investment in Iraqi oil is a long-term profit gamble, not a short term one. RFID tags could be used to track security personnel and key equipment. There have been attacks on transformers in several towns, interrupting already unsteady power supplies. These firms have been given billions of dollars in contracts by the U. Recent weeks have seen a steady drumbeat of leaks, punctures and explosions on lines in remote areas, both in the north and south. Last June, SOMO issued its first oil sales tender since the war started, for 10 million barrels of Kirkuk crude stored in tanks at Cheyan and Basra. 5-2 years and to reach the latter stage may require as along as 6 years. In addition, world oil supplies are extremely tight now. Another major problem faced by Iraq's refining sector was lack of water treatment facilities. Making the situation in Iraq profitable will require vast amounts of money and an extensive commitment of time.
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