Iraq deemed world's greatest oil prospect (24/06/04)

Iraq is the greatest oil prospect in the world, with huge undeveloped oil fields and enough reserves to meet the world's needs for many years, an energy expert said Wednesday. Using modern equipment and technology, Iraqi oil production could exceed output from Saudi Arabia, said Dobie Langenkamp, director of the National Energy-Environment Law and Policy Institute at the University of Tulsa.

Langenkamp, who served as deputy assistant secretary of energy under presidents Carter and Clinton, was the featured speaker at a luncheon hosted by the Rotary Club of Tulsa.

Iraq has the second largest oil reserves in the world

Iraq has the world's second-largest proven oil reserves, with 113 billion barrels. However, the true amount of reserves may be closer to 300 billion barrels because the country's oil fields have not been thoroughly explored, Langenkamp said.

The supplies, if developed, could help meet the world's increasing thirst for oil. Global oil consumption is projected to rise to 119 million barrels a day by 2025, up from about 80 million barrels now, the Department of Energy estimates.

"This is a tremendous opportunity for the entire world," Langenkamp said. "We're talking about a giant elephant here."

Iraq's oil reserves are six times greater than the reserves of the Caspian Sea and four times greater than US reserves, he said. "We need that Iraqi oil. The world needs it," Langenkamp said. "The question is where are we going to get the $50 billion to develop it."

Iraq is now producing about 2 million barrels of oil a day. But that number could rise to 10 million barrels if Western oil companies were allowed to develop the country's vast reserves. The giant oil fields of Saudi Arabia produce between 9 million and 10 million barrels of oil a day, Langenkamp said. "There's no reason why Iraq can't be in that category," he said.

Source: Associated Press