Iraq's Oil Ambitions Set to Fuel Growth for Top Energy Stocks
Iraq's oil ambitions are set to drive growth for top energy stocks, including Chevron, ConocoPhillips, and ExxonMobil. The country has long been overshadowed by OPEC member Saudi Arabia but is now seeking a higher output quota from the organization. If it fails to get one, Iraq may follow the UAE's lead and leave OPEC altogether.
Iraq wants to increase its oil production to between 8 million and 10 million barrels per day within six years, more than double its current output of 4 million bpd. To achieve this goal, it needs the technical expertise and capital resources of major Western energy companies, creating opportunities for Chevron, ConocoPhillips, and ExxonMobil.
Chevron has already signed memorandums of understanding with Iraq for the West Qurna 2 and Nassiriya oil fields. If it secures final commercial agreements, it would take operating control of West Qurna 2, which currently produces 460,000 bpd. Chevron is also evaluating a pipeline project to bypass the Strait of Hormuz.