Why Iran And China Are Pushing Iraq To Boost Oil Production

There are four key reasons why Iraq is increasing the pace of development on a number of its major oil fields right now. First, it needs the money; second, hitting its own output targets will allow it to challenge Saudi Arabia in Eastern markets; third, it will allow Iran to increase its own oil exports; and, fourth, it is what China wants. Last week’s announcement from Iraq’s Oil Ministry that its Gharraf oilfield has started preparatory works for restarting output – so quickly after the announcement that a major drilling progamme will soon begin on the Nasiriyah site – fits into all of these categories. Just like those of its neighbour, Iran – which continues to wield decisive power over it through its military and political proxies – Iraq’s finances are in a very poor state indeed. Only a month or so ago, Iraq’s economic parliamentary committee suggested that…