Iraqi oil pipeline expected online

Oil executives announced that oil exports from Iraq to Turkey are expected to be online by Monday.  This follows the recent incident involving damage to a critical pipeline that ceased the oil deliveries from the region. A recent bomb explosion carried out by armed insurgents brought oil shipments from Beiji to an abrupt halt. The oil shipment was transporting approximately 400,000 barrels of oil each day.

According to the production director of Iraq’s North Oil Co., Emad al-Baqer, all the restoration must be completed by the coming Monday, as declared to Bloomberg News during the past weekend. He went on to report that repairs must be finished within a day. Exports will begin immediately thereafter.

After the restoration of oil flow from the Kurdish region of Iraq, the country exported approximately 2.1 million barrels of oil per day. Since the United States entered the nation in 2003, Iraqi oil exports have not yet achieved such output levels as those reached prior to the war.

Al-Qaida was found responsible for the previous attack on Baghdad’s Beiji oil refinery in February. Because of the attack, 150,000 barrels-per-day were taken away from the market. Beiji is the largest oil refinery in Iraq.

After the incident that took place in February, Iraqi oil officials expressed that, regardless of the increasing violence in the country, the oil industry of Iraq is progressing forward.

Combined with the recent loss of Libyan oil production due to the political unrest there, global oil markets have taken a serious blow from supply disruptions. Such events are reflected in oil price multi-year highs currently being witnessed.

With so much uncertainty in foreign production, the idea is gainging momentum in the US to expand and accelerate domestic oil production. Even President Obama advocated such a course of action in a recent speech.