As President Bush prepares to send over 20,000 more U.S. troops to Iraq, one question being asked is--will the escalation jumpstart the country’s oil industry? The question centers on Iraq’s vital oil trade stabilizing in the midst of a bloody war. On “Street Signs,” two guests talked about the Iraq oil situation--Michael Makovsky of the Bipartisan Policy Center and David Kirsch of PFC Energy.
Makovsky believes that Iraq’s oil output could actually triple to 6 million barrels per day if the country is more stabilized. Iraq currently produces about 2 million barrels per day. Makovsky notes that 6 million is the numbers the Iraqis use – and used under Saddam Hussein – as their optimal output. And he thinks they can reach that goal, but possibly not for another “5 or 7 or 10 years” depending on the stability of the country.