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Iraqi oil value

dinar_millions
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dinar_millions Newbie

dinar_millions

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GCC oil and gas reserves worth $65 trillion

By ARAB NEWS

Published: Mar 11, 2012 23:41 Updated: Mar 14, 2012 20:01

DOHA: The GCC's hydrocarbon reserves are estimated to be worth around $65 trillion at current export prices, based on new analysis from QNB Capital. This is almost a third of the $200 trillion value of world oil and gas reserves.

To put $65 trillion in context, it is equivalent to 47 times the GCC's estimated GDP in 2011, or 93 percent of global GDP. It is also 125 times the estimated $521 billion that the region's governments received in oil and gas revenue during 2011.

The rest of the MENA region has the next largest share of global hydrocarbon reserves (23 percent), particularly in Iraq and Iran, followed by Europe and Eurasia (16 percent), mainly Russia and Kazakhstan.

In volume terms, the GCC's 495 billion barrels of oil account for 36 percent of global oil reserves and its 42 trillion cubic meters of gas are 22 percent of global gas reserves.

Splitting down the total hydrocarbon reserves by country shows that Saudi Arabia represents almost half the GCC total, followed by the UAE, Kuwait and Qatar which each have around a sixth of the total. Qatar's share is worth about $9.5 trillion. Oman has only 1.2 percent of the regional total and Bahrain less than half that amount.

These estimates are only indicative as hydrocarbons prices are volatile and hard to predict given that they are influenced by a number of factors. These factors include world economic growth, geo-political risk, energy efficiency and technological advancements. If the lower hydrocarbon prices recorded in 2009, which can be seen as a worst case scenario, were used in QNB Capital's calculation, then the reserves would be worth (only) $42 trillion.

As gas prices vary considerably between countries, unlike oil prices, QNB Capital assumed a gas price of about US$7.5 per thousand cubic feet, an average of US, European and Asian pipeline and liquefied natural gas (LNG) import prices.

This is a reasonable estimate of what gas is currently worth to the main importing countries. At these prices, it would cost about $40 to purchase a volume of gas that produces the same amount of energy as a barrel of oil. Therefore, exported gas is worth just over a third of the oil price, which is estimated at $109 a barrel in 2011.

Gas can be regarded as even cheaper relative to oil if environmental costs are taken into account as it is a cleaner burning and more efficient fuel. Therefore, it is possible that, as technology makes it cheaper and easier to transport and use gas (including in vehicles), its discount to oil may reduce. This would increase the value of gas reserves relative to oil reserves.

QNB Capital also stated that its calculations may be an underestimate because new reserves will probably be found. Also, technological advances and high prices will make a larger share of the existing in place reserves commercially exploitable.

On the other hand, the estimated value for GCC hydrocarbon reserves overestimates the value of reserves for two reasons. It assumes that all the hydrocarbons are extracted today and sold at current prices. However, in practice a substantial portion of the oil and gas is consumed domestically at subsidized prices for power generation, vehicle fuel and industry feedstock. In addition, a discount factor is applied to the value of expected future revenue, compared to cash in the bank today, because of interest rates.

The positives and negatives may broadly cancel out, making $65 trillion a fair, if rough, estimate. In any case it is clear that the GCC's oil and gas reserves have been, and continue to be, a remarkable asset for the region. Even after decades of extraction to date, QNB Capital estimates that, at current production rates, the current official oil reserves would last for about 70 years and gas for 118 years, on a region-wide basis. Their careful use will therefore shape the GCC's economic future well into the next century.

http://arabnews.com/economy/article586370.ece

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easyrider Newbie

easyrider

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Until the hidden and repressed alternative energy sources come into public domain and then oil is worthless.

doesnt matter the fact they do have it and worth that much is amazing in itself and proves Iraq will be a power house very soon.

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Choppermike Newbie

Choppermike

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doesnt matter the fact they do have it and worth that much is amazing in itself and proves Iraq will be a power house very soon.

Spot on Easy. IF they can stop pissing on each others fire hydrants long enough to realize that coming to a consensus, will lead them to become an incredible nation. There's too many power grab attempts and very much like our own country have no real leadership. They are so close minded seeped in culture and stubbornness that they haven't even imagined what life could/would be like with the assets they have. It will take a leader to emerge for this to happen. It boggles my mind that they have been fighting within the tribes for over 4,000 years and they still can't see that it hasn't worked. Doing the same thing over and over and over and over again and expecting a different result - duhhhhh.

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Choppermike Newbie

Choppermike

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Until the hidden and repressed alternative energy sources come into public domain and then oil is worthless.

Are you kidding me!!!!! The technology to which you refer will not be ready to power this nation for another 20 -25 years. Wind mill power, doesn't work, Batteries in cars do not work; Solar panels on the top of buildings do not work. I had a friend who placed solar panels on his roof and his payback period exceeded 15 years. I don't disagree that we need to work on these technologies, however the government should not be involved. It should be funded by private dollars and not my tax dollars. Tell me this - Why hasn't the infrastructure for natural gas been built. It's cheaper, its cleaner and it exists in abundance for the next 350 years. Why is the current administration more worried about fixing roads and the internet. Why are we not spending dollars to build the infrastructure for natural gas?

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Goodlife Newbie

Goodlife

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Until the hidden and repressed alternative energy sources come into public domain and then oil is worthless.

Oil is mainly responsible for the massive leap the developed world has made since early last century. Without it there would be no efficient shipping, no airplanes at all! no trucks, no cars, no heavy machinery the way we know it. no motor cars, etc No plastics of any kind - take a look around your house its nearly everywhere. petroleum oil is in every cosmetic moisturizer Most people do not understand the direct correlation between petroleum oil and the really fast development this world has seen since early last century. We owe that to oil. That is how important oil is and has been. Oil is in our lives even if you think you are green - use a plane, car, bicycle, cell phone, even battery packs or solar energy panels, its either made from or powered by oil or both. the list is nearly endless. There is no way we can get out of that relationship quickly or easily.

Oil has got us this far and we are supposedly past peak oil in a really oil hungry world. Whats ahead that can replace the numerous uses cheaply?

According to a Oil consumption report in the US - 1/3 used for motorcars 1/3 for infrastructure use and 1/3 for other uses. Its used nearly everywhere. Solar panels and electric cars to fix the problem :lol::blink: How do you power a truck or digger or plane.

Tell you something straight out - no oil - we go back in time real fast.

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leesburg Newbie

leesburg

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just goes to show ya ... if you get sanctioned what happens to your currency.. look at irans currency now since they got all those sanctions.... iraq had sanctions for 15 or 20 years .. irans currency is dead ...... trade importing and exporting have alot to do with currency value .. world trade organization needs to let iraq in soon... the imf needs to let iraq bump up its currency and united nations needs to let iraq off probation ..."chapter 7"

its alll coming together .. its very time comsuming .. it all has to be documented .. legalized .. and certain time periods need to expire for each step of the way ...

when i first got into this investment i was told we would see a good return around 2016 ... after oil exports were around what saudi arabia does daily ..... they figured it would take that long to achieve that much oil being pumped daily .. around 10 to 12 million barrels a day ....

things look like they are speeding up with these floating platforms and all as well as pipelines to turkey and different locations ..once china finishes thebiggest refinery in the world .. they will be refining much more oil a day ..its got to come from somewhere ..

a good republican president should push for new refineries here in the us .. .. i hopoe its the first thing romney does when he gets into office .. sign executive orders to break ground imediatly for new refining capabilities .. as well as break ground on several new nuke plants .... and fire up a few of those coal burning plants that are just sitting there .... bring down energy costs ..

our economy wont come back till either everyone gets a raise to keep up with inflation .. or energy costs go down .... all wages need to go up by 30% for this economy to work correctly .. they know what to do .. it seems like we are being held back intentionally at this point

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Luigi1 Grand Master

Luigi1

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Natural gas prices are expected to triple in costs over the next decade as autos switch to natural gas over environmental concerns. Iraq's natural gas reserves could exceed the total value of it's current estimated oil worth. With a 118 year supply, no worries. Iraq will become the wealthiest nation on earth in very near future.

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