The Oil & Gas Industry in Iraq registered Total production of 4,462,115.98 boed in 2020
The indicator recorded a historical decline (CAGR) of 1.14% between 2017 to 2020, and is expected to grow by ...
GlobalData projects the indicator to grow ...
Why did the Total production of Oil & Gas Industry in Iraq drop in 2020?
The value of the Iraqi oil and gas market declined in 2020, with the COVID-19 pandemic depressing demand and leading to the collapse of oil and gas prices. Strong growth is anticipated in 2021 as demand for oil and gas is set to recover, uplifting prices. The oil and gas market is expected to follow a strong growth trajectory over the rest of the forecast period, in line with the projected level of demand and higher prices based on tighter supply.
The market declined sharply in 2020 as a result of the COVID-19 pandemic, hit by a combination of negative demand shock and a supply glut. Demand for gasoline and jet fuel oil in road transportation and aviation, respectively, declined dramatically in the first half of 2020 due to lockdown measures, and remained weak as these measures continued throughout the year. Demand for diesel and marine fuel, which are primarily used in trucks and ships for the transportation of goods, was affected, but that impact was less acute. Containment measures also had an impact on demand for gas through electricity generation, as electricity consumption has only been reduced from commercial and industrial operations that had to shut down, while residential consumption was slightly increased. On the other hand, demand for petrochemicals produced by naphtha and natural gas liquids increased due to greater demand for consumer packaging and personal protective equipment. Overall, consumption in the Iraqi oil and gas market was down mid-single digit percentage, a relatively smaller decline compared to the global average.
The sharp drop in demand, due to the pandemic containment measures, was the most significant factor driving the collapse in oil prices in 2020. The average price of Brent, West Texas Intermediate (WTI), and Dubai crude oils declined in 2020. In detail, the price of Brent crude oil, the international benchmark, was lower than its 2019 average.
Total Production (Boed) is crude oil and natural gas equivalent production/sales volume for the reporting period. For this computation, one barrel is the equivalent of six thousand cubic feet of gas.
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