Iraq Slashes Investment Threatening Oil Output Gains

Iraq, in a bid to curb its deficit, will cut capital spending by 26% for 2016. But cuts to upstream investment threaten to halt rising oil output. Never mind the official 9mn b/d 2022 target, even more sober estimates of 6mn b/d have been thrown into doubt as companies come under further pressure to cut spending.

Iraq’s finance ministry on 14 September submitted to the cabinet its 2016 draft budget. This “attempts to...