He now has to rely on the estimate of Philip J. Carroll, America's adviser to the Iraqi oil ministry, who guesses--hopes--that the Iraqis can export enough oil during the balance of this year to cover salaries, pensions, and other everyday costs associated with reconstituting the Iraqi bureaucracy.
But even if Carroll's goal is met, Iraqi production will not generate sufficient funds to cover the cost of reconstructing the country's infrastructure.
"Crude oil production is rising very fast now. We are up to well over a million barrels a day," a coalition spokesman told reporters here. "Yesterday's production was significantly above that figure," he added. His remarks echoed comments by a senior Pentagon official who testified Tuesday before a Senate panel, reported Platts.
In my opinion the US government should have made much more preparations in advance of the war to rapidly increase Iraqi oil field production once the war was completed.
The rate at which Iraqi oil production rises matters for several reasons:
Therefore the US can gain both security and economic benefits from high levels of Iraqi oil production.
For greater longer term security the US ought to pursue a very ambitious research and development effort to develop forms of energy that can gradually replace fossil fuels as energy sources.
|Share |||By Randall Parker at 2003 August 05 02:27 PM Mideast Iraq Economics|