Iraqi News Iraqi oil will be worth about $3.125 trillion, Now do u see the RV coming?

[Bluewaters2u]

This an exceprt of an article posted today in the "Globial Polictician

If your not sure of your Investment into the IQD, then think again and read the total article, but this is the main thing i wanted you to understand, however the report has some very good thoughts on the whole idea of what its all about. very good reading.

"(Assuming) the level of Iraqi reserves at 250 billion barrels and recovery rates at 50% (both very conservative estimates). Under those conditions, recoverable Iraqi oil would be worth altogether about $3.125 trillion. Assuming production costs of $1.50 a barrel (a high-end figure), total costs would be $188 billion, leaving a balance of $2.937 trillion as the difference between costs and sales revenues. Assuming a 50/50 split with the government and further assuming a production period of 50 years, the company profits per year would run to $29 billion. That huge sum is two-thirds of the $44 billion total profits earned by the world's five major oil companies combined in 2001. If higher assumptions are used, annual profits might soar to as much as $50 billion per year."

The country has almost no deep wells, preponderant in Iran, for instance. Though the cost of production is around $1-1.5 per barrel, one tenth the cost elsewhere - while Texas boasts 1,000,000 drilled wells, Iraq barely sports 2000. The Department of Energy's report about Iraq concludes

Q: Under the Obama administration, what will be the future of Iraq? What are the possibilities that you expect?

It is wrong to believe that the long-term policies of the United States change with every new administration. As Obama is discovering now, many of the measures implemented and decisions taken by George Bush were unavoidable and must be continued. The same applies to Iraq: for public opinion and pecuniary reasons, the USA is seeking to withdraw the bulk of its troops, while working with and maintaining a largely friendly regime there. This is untenable. Geopolitics does not suffer a vacuum: as the presence of the USA diminishes, the void will be filled by Islamist militants and fundamentalists, sectarian and secessionist operatives (including Kurdish ones), other foreign powers (Russia and China come to mind), and rampant organized crime gangs. Finally, a new Saddam Hussein is likely to emerge, replete with a promise to restore law and order to the territory. The West will support him out of fear that, if it doesn't, Iraq will implode.

If you would like to read more on these thoughts and get a real grip as to what is going on in Iraq read this Q & A put together on this this Link, Every Iraq dinar investor should read this.... Blue

LINK: http://globalpolitician.com/26112-iraq-kurds-israel-kirkuk-oil

"Knowledge is empowering and provokes ones thought process to post an opinion on the subject at hand. Empower yourself to research and feed your wisdom towards an educated opinion that gives merit to thought.....And always be true to yourself 1st".....Blue

Edited December 20, 2009 by Bluewaters2u

[Leroy2u]

Wow, I didn't realize theat Texas had that many spigots! Like swiss cheese around here...

[tuxunder]

This an exceprt of an article posted today in the "Globial Polictician

If your not sure of your Investment into the IQD, then think again and read the total article, but this is the main thing i wanted you to understand, however the report has some very good thoughts on the whole idea of what its all about. very good reading.

"(Assuming) the level of Iraqi reserves at 250 billion barrels and recovery rates at 50% (both very conservative estimates). Under those conditions, recoverable Iraqi oil would be worth altogether about $3.125 trillion. Assuming production costs of $1.50 a barrel (a high-end figure), total costs would be $188 billion, leaving a balance of $2.937 trillion as the difference between costs and sales revenues. Assuming a 50/50 split with the government and further assuming a production period of 50 years, the company profits per year would run to $29 billion. That huge sum is two-thirds of the $44 billion total profits earned by the world's five major oil companies combined in 2001. If higher assumptions are used, annual profits might soar to as much as $50 billion per year."

The country has almost no deep wells, preponderant in Iran, for instance. Though the cost of production is around $1-1.5 per barrel, one tenth the cost elsewhere - while Texas boasts 1,000,000 drilled wells, Iraq barely sports 2000. The Department of Energy's report about Iraq concludes

Q: Under the Obama administration, what will be the future of Iraq? What are the possibilities that you expect?

It is wrong to believe that the long-term policies of the United States change with every new administration. As Obama is discovering now, many of the measures implemented and decisions taken by George Bush were unavoidable and must be continued. The same applies to Iraq: for public opinion and pecuniary reasons, the USA is seeking to withdraw the bulk of its troops, while working with and maintaining a largely friendly regime there. This is untenable. Geopolitics does not suffer a vacuum: as the presence of the USA diminishes, the void will be filled by Islamist militants and fundamentalists, sectarian and secessionist operatives (including Kurdish ones), other foreign powers (Russia and China come to mind), and rampant organized crime gangs. Finally, a new Saddam Hussein is likely to emerge, replete with a promise to restore law and order to the territory. The West will support him out of fear that, if it doesn't, Iraq will implode.

If you would like to read more on these thoughts and get a real grip as to what is going on in Iraq read this Q & A put together on this this Link, Every Iraq dinar investor should read this.... Blue

LINK: http://globalpolitician.com/26112-iraq-kurds-israel-kirkuk-oil

"Knowledge is empowering and provokes ones thought process to post an opinion on the subject at hand. Empower yourself to research and feed your wisdom towards an educated opinion that gives merit to thought.....And always be true to yourself 1st".....Blue

I had it figured much higher. 20 trillion dinar in circulation (could be more) and oil only worth 3 trillion doesn't sound like we are going to get a high RV.

[IraqiFan]

I had it figured much higher. 20 trillion dinar in circulation (could be more) and oil only worth 3 trillion doesn't sound like we are going to get a high RV.

Are there 20 trillion dinar in circulation? I haven't heard any firm numbers. Does anyone know?

[jimanita]

Wow, I didn't realize theat Texas had that many spigots! Like swiss cheese around here...

lol This is Black Gold Country !! Texas has Oil Jack evwhere

[davidnelsen]

I found this on Wikedpedia:

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)#cite_note-imf2008gdp-world-eu-3

Between the EU and the US, they rake in over 50% of the GDP of the WORLD Annually! This represents approximately 32 TRILLION DOLLARS USD per year. IRAQ rakes in approximately 91 BILLION USD per year at present (note: this will increase when oil production increases).

DO THE MATH:

To do the math... we need to know how many IRAQI DINAR are in circulation Worldwide = X and then multiply that by the RV # = Y

Hypothetically if only 100,000 Americans are holding 1M IRAQI DINAR = 100 BILLION DINAR and the RV Amount is $1.49 per USD then in just the US there would be 100B X $1.49 = $149B USD

The question is... how much DINAR is in circulation?

[tuxunder]

I found this on Wikedpedia:

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)#cite_note-imf2008gdp-world-eu-3

Between the EU and the US, they rake in over 50% of the GDP of the WORLD Annually! This represents approximately 32 TRILLION DOLLARS USD per year. IRAQ rakes in approximately 91 BILLION USD per year at present (note: this will increase when oil production increases).

DO THE MATH:

To do the math... we need to know how many IRAQI DINAR are in circulation Worldwide = X and then multiply that by the RV # = Y

Hypothetically if only 100,000 Americans are holding 1M IRAQI DINAR = 100 BILLION DINAR and the RV Amount is $1.49 per USD then in just the US there would be 100B X $1.49 = $149B USD

The question is... how much DINAR is in circulation?

A minimum of 20 trillion are in circulation.

[davidnelsen]

If that is accurate then here are the numbers:

DO THE MATH:

To do the math... IRAQI DINAR in circulation Worldwide = 20 TRILLION USD

$20T X $1.49 RV = $29.8 TRILLION USD

$20T X $2.47 RV = $49.4 TRILLION USD

$20T X $3.47 RV = $69.4 TRILLION USD

IF THEY ONLY HAVE $3 TRILLION IN OIL? HOW CAN THE RV BE MORE THAN THEIR POTENTIAL OIL RESERVES INCOME?

$20T X 14.9 CENTS RV = $2.98 TRILLION USD

IF THE 20 TRILLION IN CIRCULATION FIGURE IS CORRECT AND THE OIL RESERVES FIGURE IS CLOSE...HOW CAN IT RV HIGHER THAN 14.9 CENTS USD PER DINAR?

[pirate]

there is a estimated 500,000 ppl holding an average of 3mil dinar .

just in the usa alone i dont have the estimate totals.

for the global impact.

if you read what they 2010 budget is its staggering maybe their holding a few cards we dont know about like gold natural gas,sulfur,and yes oil.

i think the can sustain a hefty rv but the need to do it soon so they dont implode.

[Jesse]

Pirate - thanks for posting. Where did you get those stats? i.e. approx 500K people holding an average of 3mil Dinar ?

[kaperoni]

That being said, how much Dinar can Iraq continue to sell? Or have they sold too much already to have a RV that benefits the people of Iraq?

Certainly, there wealth will consist of more than just oil, they will have investments, such as gold, agriculture, etc. But at some point, the IMF if guiding Iraq would have to say enough selling...RV correct?

If they are going to continue selling Dinar, I would think we all could come to the same conclusion that a RV is not possible, and one would start looking at LOP.

I would like to get the input from someone who is knowledgeable in this area.

[DgreenFSU66]

You guys are assuming that all 20 trillion will be returned to the bank and stay in circulation... that is why when you exchange at the bank, they send the money to the Federal Reserve, then it is used to purchase things for our Government... like OIL.

This also explains why there is a spread from the rate at CBI to the treasury, To the Federal Reserve to the Bank... A currency exchange, such as Ali, goes straight to the CBI as an exchange and can beat the banks spread.

Edited December 20, 2009 by DgreenFSU66
123uandme spell check

[visionahead]

Just a question. Whats Kuwaits oil worth? Mabe the oil is just a start to make other revenue, like businesses and tourist attractions in the future. The money from oil may be used to bring in other stuff. I doubt they will just count on oil and natural resources, and do nothing else.

[Bluewaters2u]

You guys are assuming that all 20 trillion will be returned to the bank and stay in circulation... that is why when you exchange at the bank, they send the money to the Federal Reserve, then it is used to purchase things for our Government... like OIL.

This also explains why there is a spread from the rate at CBI to the treasury, To the Federal Reserve to the Bank... A currency exchange, such as Ali, goes straight to the CBI as an exchange and can beat the banks spread.

yes, you are on the right track, lol.. i have been waiting for someone to come up with the correct thought. good job, Most of all the Country's will hold their Dinar exchanged in their Country's held in their Central Bank for purchase of Oil and will use the IQD to help shore up their Foreign Currency reserves as well to help increase their own currency value's, thats how a country backs their Currency with a 25 to 35% reserve of a basket of Gold and Foreign Currency's. They will also use the IQD for the future purchase of Oil and Natural Gas from Iraq only when they have too....Blue

Knowledge is empowering and provokes ones thought process to post an opinion on the subject at hand. Empower yourself to research and feed your wisdom towards an educated opinion that gives merit to thought.....And always be true to yourself 1st.....Blue

Edited December 20, 2009 by Bluewaters2u

[betterindinar]

I have seen the number at 42 trillion dinar in circulation unless the rumors about dinar being removed are true. But I have yet to see any true rumors about the dinar during the past 5 years.

[zeeke]

future price that the numbers are based on. What if the price of oil climbs back to a 150.00 or more again what dollar amount did you have your projections on .

thanks

Zeeke

[fullpint]

The amount of Dinars in circulation is irrelevant. US can pay debts in Dinar, it is money. Who says they have to exchange all Dinars back to USD?

[Bluewaters2u]

future price that the numbers are based on. What if the price of oil climbs back to a 150.00 or more again what dollar amount did you have your projections on .

thanks

Zeeke

Thats a good question, OPEC has stated in earliar this year that their goal was to achieve a average or stable Oil price of $70 pb, now of course they have achieved this many months ago, but one of the concerns that would be if OIL went to $150 again is that it would effect the USD, but however it would also help the IQD too, the problem is that when it hit the $150 is that many country's raised their annual Bugets and this caused a major problem when oil went back down to the $40.00pb, I think they all have learned the lesson here and have had to of course adjust their budgets to a much lower amount, now the last Iraq budget was at $50 pb and if they are smart on this new round of budget meetings for the upcoming year they will not raise it that much. Russia took the biggest hit on this as they still maintain a annual budget of near $90 plus pb. But as a rule when Oil rises in price the USD value declines due to of course that we import 50% or more of the worlds oil production....hope this in its long way around answered your question...Blue

Knowledge is empowering and provokes ones thought process to post an opinion on the subject at hand. Empower yourself to research and feed your wisdom towards an educated opinion that gives merit to thought.....And always be true to yourself 1st.....Blue

[igniteassoc]

If that is accurate then here are the numbers:

DO THE MATH:

To do the math... IRAQI DINAR in circulation Worldwide = 20 TRILLION USD

$20T X $1.49 RV = $29.8 TRILLION USD

$20T X $2.47 RV = $49.4 TRILLION USD

$20T X $3.47 RV = $69.4 TRILLION USD

IF THEY ONLY HAVE $3 TRILLION IN OIL? HOW CAN THE RV BE MORE THAN THEIR POTENTIAL OIL RESERVES INCOME?

$20T X 14.9 CENTS RV = $2.98 TRILLION USD

IF THE 20 TRILLION IN CIRCULATION FIGURE IS CORRECT AND THE OIL RESERVES FIGURE IS CLOSE...HOW CAN IT RV HIGHER THAN 14.9 CENTS USD PER DINAR?

Your math lives in a vacuum. There is natural gas, SULPHUR (about the same price as GOLD right now), agriculatural value to come, AND you are assuming also that you know about all the oil in Iraq. There has not been serious oil EXPLORATION in Iraq for 15 years and even then, it was with technology that was "barney rubble" compared to today. Also, where is your 20T in circulation proof? Math is math. A bumble bee can't mathematically fly (body weight to wing span/speed) but he doesn't know this, so he does it anyway..... I'm just saying.....

[davidnelsen]

DO THE MATH:

Hypothetically if only 500,000 Americans are holding 3M IRAQI DINAR = 1.5 TRILLION DINAR and the RV Amount is $1.49 per USD then in just the US there would be 1.5T DINAR X $1.49 = $2.235 TRILLION USD

That is if the figures provided in this thread are accurate.

By the way... Iraq's GDP was only 91 BILLION in 2008. That is hardly close to the numbers needed to justify a high RV based on these numbers...