Wednesday Afternoon Iraq Economic News Highlights 9-28-22
Report: Iraq Is Among The Top 10 Countries In The World In Oil Pipeline Capacity
Energy Economy News – Translation While the number and length of operating oil pipelines have declined since 2010, a new report warns, global stockpiles could grow to an unprecedented level and undermine efforts to curb global warming.
A Crude Awakening paper published by Global Energy Monitor (GEM) that tracks energy generation, distribution and investment infrastructure states that the oil industry has more than 24,000 kilometers of new oil pipelines under development, with more than 10,350 kilometers already under development.
State-owned companies, including China National Petroleum Corporation, Indian Oil Corporation, the government of Zambia and the Iraqi Ministry of Oil, are major contributors to these plans, along with companies such as TotalEnergies, ConocoPhillips and Tullow Oil.
The United States and India are linked by the largest capacity of new pipelines in terms of length, with a length of about 2,800 km each. In India, there are already 1,630 km under construction. US capacity has been largely proposed but not yet built, with only 137 km under construction at this point. According to .edie.net
Among the top 10 countries for most new pipeline capacity are China, Russia, Tanzania, Canada, Iran, Niger, Kenya and Iraq. Russia, the countries of the Greater Gulf region, are likely to export oil from these pipelines to India and China as they face boycotts from European and North American countries.
Regionally, GEM found that Sub-Saharan Africa leads the world in the development of the planned pipeline in terms of length. This is cause for concern because the region has, historically, not been a major contributor to global emissions – yet it faces challenges in accessing energy. According to the International Energy Agency, 74-77% of the population has no access to electricity. Moreover, more than 80% of the population does not have access to clean cooking fuels and techniques.
GEM warns that there are two possible outcomes facing pipeline development. Either it is allowed to move forward, and the world’s chances of meeting the Paris Agreement’s temperature limits have faded, or developers will face billions of dollars in losses through stranded assets if strong climate policies and direct action prevent a backlog.
In the first case, the oil pumped through the pipelines would produce at least five billion tons of greenhouse gas emissions annually, if all were completed, according to GEM estimates.
Regarding the latter, GEM estimates that developers collectively face the risk of stranded assets of up to $75.4 billion in a low-carbon transition.
GEM accuses governments of paying for the pipelines, or otherwise subsidizing them, for “nearly willful failure” to meet international climate agreements.
The report comes less than two months before COP 27, when delegates gather in Egypt to brief each other on Paris Agreement plans and formulate new commitments on mitigating and adapting to climate change. The summit will start on November 6 in Sharm El Sheikh.
35 . views Added 09/28/2022 – 9:53 AM Update 09/28/2022 – 1:03 PM
https://economy-news.net/content.php?id=29938
Poll: The Majority Of The Iraqi People Support Allocating A Fixed Percentage In The General Budget For The Arbaeen Visit
WED, 09-28-2022,PM 12:30 Tayseer Al-Assadi Al-Warith Academy for Human Development and Strategic Studies conducted a survey of the Iraqi public opinion to find out the extent of its acceptance of allocating a specific percentage in the annual budget to be spent on the requirements of commemorating the Arbaeen visit of Imam Hussein, peace be upon him, because of its great importance to Iraqis
Aqil Al-Sharifi, director of the academy, told Noon news agency, “The visit of the Arbaeen of Imam Hussein has become of global scope and includes multiple dimensions, as it is no longer limited to the religious and tourism dimension, but rather has become one of the elements of the soft power of the Iraqi state and has geopolitical implications, due to the globality of the visit, where millions of visitors participate in it. from all countries of the world”
Al-Sharifi confirmed that the poll question was in the form of (Do you support allocating a fixed percentage in the state’s general budget annually to Karbala governorate and its holy shrines to develop infrastructure and provide services during million visits?), indicating that the number of those who participated in the poll reached 1014 voters from all Iraqis of different ages and classes. The number of supporters was 940 voters, while the opponents voted only 74.
This means that 92.7% of the respondents support the decision to allocate a fixed annual percentage of the state’s general budget to Karbala governorate and its holy shrines for the development of the infrastructure represented in particular by modern transportation and transportation methods Health and environmental services, municipal services, hygiene, waste recycling and other services necessary to manage and gather the millions of visitors.
And the director of the academy indicated that this poll comes after the end of the Arbaeen visit of Imam Hussein, peace be upon him, in Karbala, which witnessed the influx of more than 21 million visitors from different parts of Iraq and the world through the land and air ports, especially Najaf airport and the ports of Shalamcheh and Zurbatiya. http://non14.net/public/151198
Oil Official: We Are Close To Achieving A Surplus In Gasoline And Exporting It Abroad
Posted On2022-09-28 By Sotaliraq Baghdad/Bright news A high-ranking oil official revealed that a surplus of gasoline is imminent and exported abroad, stressing that the operation of the Karbala refinery would reduce imports of motor fuel by 70%.
This comes at a time when an oil expert confirmed that Iraq can invest what was paid for the imported gasoline to pay the construction amounts of the new refinery within a period not exceeding a year and a half.
The Associate Director of the Department of Oil Derivatives, Ihsan Musa Ghanem, said in a statement to Al-Mada that “the Karbala refinery, whose opening stages were started two days ago, will reduce Iraq’s import of gasoline by 70%.”
Ghanem added, “The completion of the development of the country’s refineries, according to the plan set by the Ministry of Oil, will lead to a surplus to be exported abroad after completing the development according to the ten-year plan during the coming years.”
]He pointed out, “The launch of trial operations for a new oil refinery in Karbala, and this project, according to specialists, would help oil-rich Iraq significantly reduce its imports of fuel.”
Ghanem indicated that “Iraq is on the verge of a large surplus of gasoline due to what the Karbala refinery will produce, and after the completion of the (MCC) units in the Basra refinery for crushing, and the development of the Baiji refinery, and thus the country will be satisfied with gasoline.”
He pointed out that “the refining capacity of this refinery is 140,000 barrels per day, and it will contribute during the next few period to cover part of the local need and reduce imports of oil derivatives and fuel.”
Ghanem stressed that “the ministry has started the first operational phase, and production is scheduled to start early next year.”
Ghanem stated, “The Karbala refinery’s production of gasoline will be 9 million liters per day, while Iraq imports 15 million cubic meters.”
He stressed, “The Karbala refinery, along with the other refineries that were mentioned, and after the completion of the expansions in the Shuaiba refinery in Basra, will cover the local need of gasoline by (90-100%)%.”
Ghanem went on to say that “the cost of Iraq’s import of oil derivatives, which exceeds $3 billion annually, will drop significantly.”
For his part, oil expert Hamza Al-Jawahiri said, in a statement to Al-Mada, that “this refinery is of very high specifications, which is called (Euro 5).”
Al-Jawahiri added, “The greenhouse gas emissions that are harmful to the environment for these specifications decrease to 30% from the normal level.”
He pointed out that the advanced refinery will have a production capacity of 140,000 barrels per day, and will produce oil derivatives such as improved (high-octane) gasoline, diesel (kerosene), white oil, jet fuel and other products such as oils and others.
Al-Jawahiri stressed, “The volume of Iraq’s import of gasoline will decrease at a rate of 70%, and 90% of diesel. As for other products, there are basically no problems such as white oil and jet fuel.”
He stressed, “If the reconstruction and development of the Baiji refinery is completed, Iraq will have large quantities of surplus gasoline and can therefore be exported abroad.”
Al-Jawahiri went on to say, “The project is of very great importance to the economy, and we may be able to pay the costs of the refinery through the amounts that were paid to the imported gasoline within a year or a year and a half.”
Oil Minister Ihsan Abdul-Jabbar Ismail announced earlier this week the start of pumping crude oil to the Karbala oil refinery, marking the start of the trial operation of the production units of the Karbala oil refinery.
Ismail said in a statement received by (Al-Mada), that “the refinery’s refining capacity is 140,000 barrels per day, explaining that it will contribute during the next few period to cover part of the local need and reduce import,” praising the national effort, the coalition of Korean companies and all the parties that supported the project.
For his part, Director General of the Central Refineries Company, Ayed Jaber Omran, who managed the pumping wheel on behalf of the Minister of Oil, explained that “the start of pumping crude oil to the refinery’s production units is an important step to expedite the production and refining operations of the refinery, which will provide millions of liters per day of oil products.”
Iraq still relies on imported gasoline to meet the local need, especially for improved fuel (high octane), where crises occur from time to time at the stations that result in severe overcrowding and scarcity, while the security authorities accuse some weak-minded people of smuggling it between provinces in order to achieve financial profits. LINK
Oil Prices Are Falling Back In Global Markets
Economie 2022-09-28 | 03:10 672 views Oil prices fell more than 1% on Wednesday, affected by a stronger US dollar and rising crude inventories that offset support from US production cuts caused by Hurricane Ian.
Brent crude futures were also down 91 cents, or 1.05%, at $85.36 a barrel by 04:41 GMT, while US West Texas Intermediate crude futures were down 85 cents, or 1.08%, at $77.65 a barrel.
The dollar hit a two-decade high against a basket of currencies on the back of rising Treasury yields. A strong dollar is reducing demand for oil by making it more expensive for buyers who use other currencies.
Asian stock markets fell as rising borrowing costs stoked fears of a global recession, spooking investors into the dollar as a safe haven.
US crude oil inventories rose by 4.2 million barrels for the week ending Sept. 23, while gasoline stocks fell by nearly one million barrels, according to market sources on Tuesday, citing figures from the American Petroleum Institute . LINK
Russia Proposes To OPEC + To Reduce Oil Production.. Iraq Has An Opinion
Shafaq News/ An oil official in Russia said today, Wednesday, that his country will propose to OPEC + during its meeting scheduled for next October 5 to reduce oil production by about one million barrels per day, while Iraq announced the organization’s desire to achieve balance in the markets.
The meeting will be held on the fifth of next October against the backdrop of low oil prices and months of severe market volatility, which prompted Saudi Arabia, the other largest producer in OPEC +, to say that the organization may reduce production.
OPEC+, which includes OPEC countries and allies such as Russia, has refused to raise production to lower oil prices despite pressure from major consumers, including the United States, to help the global economy.
However, prices fell sharply this month due to concerns about the global economy and the strengthening of the US dollar after the Federal Reserve raised interest rates.
It is likely that the impact of any OPEC + agreement to cut production will be mitigated by the inability of many members of the group to produce according to the agreed targets.
Iraqi Oil Minister Ihsan Abdul-Jabbar said that OPEC + is monitoring the situation in oil prices, wishing to achieve a balance in the markets.
Earlier this month, JPMorgan said it believed that OPEC+ may need to step in with a cut of up to 1 million barrels per day “to stem the downward momentum in prices and reorganize the seemingly disconnected physical and paper markets”. LINK
