Related News: Balancing 2016 very optimistic figures do not reflect the full picture of Iraq's economic reality

By Mohammed Emad

22/09/2015 12:12

Brother - Baghdad
He competent Alaguetsada- Harvard University Ali Furaiji, that the price of $ 45 a barrel does not reflect the full picture of global economic realities and the surrounding Iraq in particular and the faces of internal and regional crises.

Said Furaiji "The draft budget in 2016 depends on the price of $ 45 a barrel and production rate up to 3.6 which is a very optimistic figures, the barrel does not reflect the full picture of global economic realities and the surrounding Iraq in particular and the face of internal and regional crises.

He pointed out that "Iraq and for years was the focus of attention of the International Energy Agency IEA And the element of optimism for the long-term supply of oil and energy sources.

He said that at the end of 2010 a report to the International Energy Agency on expectations oil production refers to Iraq will reach its production export to more than double its current production of any to 6.1 million barrels per day (b / d) by 2020, and bringing them to 8.3 million barrels per day (b / d) by 2035.

"A lot of events since the International Tgarirolokulh Energy 2012, including the war against terrorist organizations and the collapse of crude oil prices worldwide to more than 65% of the rates in 2012-2013 confused the report to be returned drafted some time ago to be the expectations of less than 4.2 million Brill day - and this amendment interface modification for production projections for the oil ministry, which decreased its forecast up between 5.5 - 6 million barrels per day in 2020, which is less than the previous forecast and the oil ministry, which was referring to 8.4 - 9 million barrels per day for the same 2020 rates.

He noted that "the Iraqi government requested early last September by the Ministry of Oil of groups of international oil companies operating in the southern fields that reduced expenses in the work and that the budget is unable to pay dues at the moment because of the financial crisis - it will reduce the payments table. Indicating that some of these companies responded to this demand, and cut spending agenda, including the company BP, which has worked to reduce the expenditure of $ 3.5 billion to $ 2.5 billion for 2016 in the fields of Rumaila, the largest oil fields in Iraq.

And say, "It will be difficult for the operating companies to reduce costs and maintain production rates and this is what shows through the senior management of these companies permits, and rounds of dialogue between the government and departments of labor now Enterprises.

He added that "this indicates that production rates could be maintained with difficulty on the rates if Iraq did not face any other crisis or the complexity of reality, pointing out that all the indicators of international and special reports shows that oil prices rates will not improve significantly and will remain very close to the rates for these months until the last quarter of next year, 2016. "

The Ministry of Finance has announced the submitted draft 2016 budget law to the Council of Ministers, on the basis of export 3.6 million barrels of oil per day at a price of / 45 / dollars per barrel, noting that the budget revenues will amount to more than 84 Trliuna and 73 billion dinars.

The Ministry of Finance confirmed that the drafting of the budget was based on slash public spending and combat extravagance and waste in state revenues and diversify sources of national income in the country.