Violence threatens future levels of output in Iraq

Abstract

The inability of the US and its allies to impose any kind of civil order on Iraq is threatening the country's future as a major oil producer. Not only is Iraq 's present level of oil production well below the level targeted for this year: the continuing chaos is also discouraging international oil companies from contributing to plans to raise production capacity to much higher levels. Further uncertainty over future levels of production has now come in the shape of rising opposition inside Iraq to foreign participation in the upstream sector. In the meantime, continuing attacks on oil installations across Iraq are depressing production and exports alike.