Oil companies not rattled by Iraq upheaval


Shares in oil explorers focused on northern Iraq tumble amid spreading violence, yet some oil execs express a perverse optimism that the semi-autonomous Kurdish region could gain more bargaining power with the Baghdad government over oil rights and government revenues.

Among oil majors, their Iraq holdings account for small portions of global output but development has been ongoing: BP has a 38% working interest in the Rumaila field in southern Iraq, Exxon (XOM) holds leases on ~900K acres and has development wells in the West Qurna field, Shell (RDS.A, RDS.B) owns 45% and is operator of the Majnoon field in the south, Occidental Petroleum (OXY) is among the developers of the 4B-barrel Zubair field, and Chevron (CVX) holds an 80% stake and is operator of the development-stage Qara Dagh block in Kurdistan region of Iraq.

Among smaller producers, shares of Genel Energy (GEGYF) and Gulf Keystone (GUKYF) aren't showing big gains or losses, but DNO International (DTNOF) is ~5% lower.

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Comments (12)
  • Philip Marlowe
    , contributor
    Comments (1579) | Send Message
     
    Of course they aren't. Iraq upheaval means that oil is going up. Unfortunately, almost all other stocks are rattled by it.
    12 Jun 2014, 02:29 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    When will the world's non-producing public wake up to the fact the globe is awash in oil, and the price is as manipulated as gold, (all PM's) and many other markets.

     

    If we put all the diamonds in vaults out for sale, we'd be buying them out of gumball machines.

     

    The ONLY reason I don't get upset about fuel prices at the pump is how much it costs to go get it. I don't have real figures on their costs per barrel of crude, then how much to refine.

     

    I know this, it takes so much money to refine crude, that most producers send it elsewhere (mostly to America) because they can't afford to refine it.

     

    I bet, if we didn't underwrite the technology and actual running of oil producers, they would go back to selling camel feed (in the middle east) and emeralds (in SA)

     

    Well, until there is a better way to do it, we are forced to fall in line.

     

    Capt. Brian
    The Lost Navigator
    12 Jun 2014, 02:44 PM Reply Like
  • jrobertmehall
    , contributor
    Comments (5) | Send Message
     
    Capt.Brian's moniker is appropriate.
    13 Jun 2014, 07:19 AM Reply Like
  • Hendershott
    , contributor
    Comments (1773) | Send Message
     
    It's way too soon to see how this unfolds. If executives aren't making contingency plans they're nuts. Obviously this adds uncertainty to the markets.
    12 Jun 2014, 02:47 PM Reply Like
  • Vinced D.
    , contributor
    Comments (9) | Send Message
     
    The news commentary so far seems to have left the Kurds out of the equation. I would think the Kurds rule in northern Iraq and that the Kurdish military is stronger than the Sunni militants occupying Mosul and Tikrit. But, I would like to hear the opinion of someone truly knowledgeable about the subject.
    12 Jun 2014, 02:52 PM Reply Like
  • annonymousAlpha
    , contributor
    Comments (40) | Send Message
     
    geopolitically speaking, I am familiar with Kurds. I believe they are looking for financial growth and prosperity for their independent region, and these violences and events would be temporary. Although some people pulling their legs, Kurds are smart people and it's a promising region in the ME with great future for investment.
    12 Jun 2014, 02:52 PM Reply Like
  • User 353732
    , contributor
    Comments (5160) | Send Message
     
    A defacto Kurdistan is now a little closer to being formed encompassing parts of Iraq and Syria initially and later some part of Iran. Kurdish oil becomes more important now and Kirkuk is now the southern outpost of the Kurds.
    The Kurds are strategic winners in the rout of the Iraqi "army" while the Iranians are potential losers in the sectarian war, which is why the Iranians are mobilizing.
    The Islamic terrorists caused panic amongst the Iraqi regulars but were easily defeated by the Kurdish forces in Kirkuk
    12 Jun 2014, 03:48 PM Reply Like
  • mjb0909
    , contributor
    Comments (225) | Send Message
     
    Thanks for all the very informative comments above. It gives a good insight on that part of the world which always seems like a "powder keg". What I always worry about is that if the wrong/wild fanatics start to control large oil deposits in that part of the world, it gives access to "deep pocket" funds in which they can buy most anything---then they may graduate from being a "powder keg" into "nuclear keg" that fits into a suitcase!
    12 Jun 2014, 07:44 PM Reply Like
  • fgalotti1
    , contributor
    Comments (35) | Send Message
     
    It is time the US and the EU woke up to the fact that the Kurds have been the most loyal and trustworthy regime in the region. They now deserve and have suffered enough for the full support of the western powers.
    12 Jun 2014, 08:28 PM Reply Like
  • davenjaneice@charter.net
    , contributor
    Comments (10) | Send Message
     
    Arm the Kurds. Only group worth saving in Iraq. Help them with their relations with Turkey. Kurdish population in Turkey is a problem for Turkey. An arms Kurdish force could annex the part of Syria that has a Kurd population. We need to build a prosperous ally in the the region.
    THE GGRumpa
    12 Jun 2014, 11:17 PM Reply Like
  • dunnhaupt
    , contributor
    Comments (2228) | Send Message
     
    ISIS apparently stands for Islamic State of Iraq and the Levant. That doesn't sound like they are planning to confine themselves only to Kurdistan. ISIS is commanded by Saddam Hussein's fugitive second-in-command.

     

    For now I stick with COP which sold its assets in most risky areas of the world and has none in Iraq.
    15 Jun 2014, 08:11 AM Reply Like
  • MWinMD
    , contributor
    Comments (3457) | Send Message
     
    Bummer for the oil companies when they don't have a paid errand runner in the White House. No one to subsidize your profits via the blood of American service members and a trillion dollars from the US taxpayer.
    15 Jun 2014, 03:18 PM Reply Like
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