U.N. report: Iraq oil in lamentable state —and could get worse

by The Associated Press

Iraq is squeezing more oil from its wells but is using techniques that will ultimately lower total yields and even close wells, according to a report by U.N. oil industry consultants.

A “water injection” program has increased production from three of Iraq’s southern oil fields by 160,000 barrels per day between August 1998 and May, according to the report by the Dutch oil company Saybolt Netherlands BV.

However, benefits from the technique will eventually fizzle out, reducing the ultimate yield, according to the report released July 7. Fifty-four wells in the south have “watered out” since mid-1998 and are unlikely to be revived.