Iraq hopped 2 positions to become the world’s second largest oil producer in 2012. OPEC ranked Iraq to be the 2nd after the oil virtuoso Saudi Arabia. The neighbor country Iran slipped to the no. 5 position this year.
The increment in the output was considerably appreciable to a 24% this year. But the dip in the oil production by Iran has been consistent since 1988 and will be dipping in the year to come as per the International Energy Agency. The changes in the production have taken place in Iraq due to the geopolitical changes in the region.
Some of the major attractions post the declination of Saddam Hussein from the throne has come forward for investing in the crude oil extraction process in Iraq. Royal Dutch Shell and Luke oil are the major investors there. As per many economists in the west, Iraq will continue being the main source of income for the upcoming years.
The export reliability for Iraq is averaged at 3.35 million barrels per day as compared to 2.7 million barrels for Iran as the United States and European Union has exposed a ban on the latter’s exports which is the major cause of their dipping value in the oil production market.
The technological advancements in the US have led to the increase of the oil supply globally by using fracking or fracturing to remove deposits in shale formations. Worldwide production has been averaged at 90.8 million barrels per in the third quarter taking the gross up by 2.7 per cent from 2011.