Iraq’s crisis could shut down oil companies in the region

Yadav Abhishek, EzineArticles Basic Author

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Iraq is in great crisis. Sunni rebels have taken over some of the country’s northern cities. The rebels are fighting hard and have ruthlessly murdered several people including Iraqi soldiers. They are violating major human rights norms. Country’s Shia led government has been offered help by Iran and some western countries majorly US.

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One of the main industries which are severely affected by Iraq’s crisis is the oil industry. Many oil companies have asked their staffs to come back as they are terrified with the possibility of strikes at country’s major oil fields by Sunni extremists. However, the Baghdad government has assured tight security in this regard.

Iraq’s-crisis-could-shut-down-oil-companies-in-the-region
Iraq produces and caters to almost 90% of its oil supplies. According to the Iraqi officials, the southern regions which hold oil resources are entirely safe from the rebels. Government has deployed one lac security forces to protect oil facilities. While the government claims at maintaining tight security, oil companies are taking no chances and are pulling their foreign staff which could be the main target of rebels. Operations are still on in the oil companies like BP while the non-essential staffs have already moved out of the country. According to a report by Exxon Mobil, which is evolving with a huge oil field, it is cutting its staff from the region. Moreover, in view of the grim situation, some importers are feeling uncertainty about the supplies in future. So the future seems uncertain for the industry.

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