Iraq And Brazil Partnering On Oil Production

    May 25, 2005
    WebProNews Staff

Petrobras has agreed to advise Iraqi oil interests on bolstering oil yields that have fallen 47 percent.

According to Bloomberg, Petroleo Brasileiro will be part of an Iraqi technical committee, and will advise state-run companies on boosting production. Current output from the Iraq oil fields offers less than 2 million barrels per day.

Potential terrorist attacks remain a concern for the Iraq oil industry. The country’s new oil minister, Ibrahim Bahr al-Ulum, wants to stop attacks against the fields. Iraq wants to boost production from its oil reserves, the third-largest in the world, to 3 million barrels per day.

Other firms assisting with increasing production include Royal Dutch/Shell and BP. Yesterday, light crude closed at $49.67 per barrel in anticipation of the summer driving season and increased demand.

Brent crude finished Tuesday on the London market at $48.82 per barrel. Refinery concerns continue to plague US drivers, as aging plants struggle to maintain a 94.5% capacity and begin refining heating oil for winter use.

And while the US Energy Information Agency was claiming lower demand due to high gas prices, AAA estimates nearly 37 million Americans will travel 50 miles and up this holiday weekend, 85% of that by car.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.