Oil prices reaching $115 per barrel since intervention of the Islamic State of Iraq and the Levant in the northern provinces of Iraq have fallen below $100, according to Ilham Shaban, the head of the Center for Oil Research. Shaban told Vestnik Kavkaza that the prices were dropping oil exports of Libya were stabilizing and the situation around the Iraqi conflict was changing.
He reminded that Western companies had been evacuating staff and closing offices when ISIS had started attacks on Baghdad. When the U.S. attacked the militants and the Iraqi army pushed out into the north, ISIS started fighting against Yazd Kurds, making oil extraction safe.
Shaban noted that Azerbaijan could compensate falling oil prices with increased oil extraction. He reminded that 86% of Azerbaijani exports was oil. In his words, Brent oil cost $101, Urals was below $100. The advantage of Azerbaijan, as he believes, is that Azeri Light is sold for a higher price than Brent. According to monthly reports of the State Statistical Service, oil extraction increased by 2.7% in seven months of 2014, compared with the same period in 2013.
Shaban emphasized that Azerbaijan was ready even for a collapse of oil prices. The republic has over $37 billion of reserves at the State Oil Fun and savings at the Central Bank. Azerbaijan realizes high-scale projects related to development of the Shah Deniz Field, builds TANAP and TAP pipelines, expands the South Caucasus Gas Pipeline. In 2015, a gas-processing factory will open. A SOCAR drilling platform worth $1 billion is under construction.
The economist added that the republic had enough project to be independent from fluctuations on the market. He reminded that there were many infrastructure projects within the framework of the European Olympic Games. Shaban added that the sewer project under construction was twice as expensive as the Baku-Tbilisi-Ceyhan Pipeline, its budget until 2018 will total $10 billion. The country will modernize all sewer systems even if the country suddenly needs to be more frugal, as Ilham Shaban assures.
Oil prices reaching $115 per barrel since intervention of the Islamic State of Iraq and the Levant in the northern provinces of Iraq have fallen below $100, according to Ilham Shaban, the head of the Center for Oil Research. Shaban told Vestnik Kavkaza that the prices were dropping oil exports of Libya were stabilizing and the situation around the Iraqi conflict was changing.He reminded that Western companies had been evacuating staff and closing offices when ISIS had started attacks on Baghdad. When the U.S. attacked the militants and the Iraqi army pushed out into the north, ISIS started fighting against Yazd Kurds, making oil extraction safe.Shaban noted that Azerbaijan could compensate falling oil prices with increased oil extraction. He reminded that 86% of Azerbaijani exports was oil. In his words, Brent oil cost $101, Urals was below $100. The advantage of Azerbaijan, as he believes, is that Azeri Light is sold for a higher price than Brent. According to monthly reports of the State Statistical Service, oil extraction increased by 2.7% in seven months of 2014, compared with the same period in 2013.Shaban emphasized that Azerbaijan was ready even for a collapse of oil prices. The republic has over $37 billion of reserves at the State Oil Fun and savings at the Central Bank. Azerbaijan realizes high-scale projects related to development of the Shah Deniz Field, builds TANAP and TAP pipelines, expands the South Caucasus Gas Pipeline. In 2015, a gas-processing factory will open. A SOCAR drilling platform worth $1 billion is under construction.The economist added that the republic had enough project to be independent from fluctuations on the market. He reminded that there were many infrastructure projects within the framework of the European Olympic Games. Shaban added that the sewer project under construction was twice as expensive as the Baku-Tbilisi-Ceyhan Pipeline, its budget until 2018 will total $10 billion. The country will modernize all sewer systems even if the country suddenly needs to be more frugal, as Ilham Shaban assur
