July 2016 proved so good for the oil industry of Iraq. This is the country that is fully dependent on the production and the export of the oil in the international market. The speculation in the oil production and export directly affects the economy of Iraq. The increase in the oil production stabilizes the economy of Iraq and the decrease in the oil production destabilized the economy of the country. Iraq understands that dependency of oil is not in the favor of Iraq and it will have to promote its other sectors but oil has its own value in the world. It is one of the most precious things in the world.
Along will all security challenges, the 2016 proved better month for Iraq and its economy. The oil production of Iraq increased from 3.18 million barrels per day to 3.28 million barrels per day in July. The basic increase in the oil production was because of better infrastructure than the previous months. Iraq is in the final nock with the ISIS militants and looking to regain the control of the lost city of Mosul. Most of the areas of Iraq are regained from militants and only Mosul is left back. The better security situation in the country is another reason to enhance oil production in the international market.
The oil production of Baghdad is increasing with the every single passing day in the country. The militants always remain in the hunt to destroy the pipelines of Iraq to stop supply of the crude oil in the international market. Mostly they fail to achieve their goal but some time they successfully destroy the pipeline that causes a huge loss to the country. Iraq is also receiving some good news from capital of Kurdistan Erbil.
The oil production of the Kurdistan has increased from 515000 barrels per day to 550000 barrels per day in the international market. The increase in the production is due to better security provided by Peshmerga to its oil producing areas. The oil pipeline of the Kirkuk oil fields was also damaged by militants from north that dropped the oil production from 600,000 barrels per day to 515000 barrels per day in the beginning of the year.
It took two months to the Kirkuk engineers to repair this pipeline to make it functional again. Another big reason for decrease in the oil production of Iraq was suspension of the contract by North Oil Company in the Kirkuk oil field because of poor or insufficient security conditions. The Peshmerga of Kurdistan provides assurance to the foreign companies to work in the region without any fear. A fool proof security will b provided to everyone in the Kirkuk.