Iraq will become an increasingly important oil producer as surging global demand will stretch dwindling supply from other sources, according to Irish-based oil exploration company Petrel Resources.
Petrel, stayed in Iraq during the recent conflict, has submitted tenders to the Iraqi oil ministry to develop three new oilfields which are expected too produce 300,000 barrels a day.
According to Petrel chairman, Mr John Teeling, Iraq's proven reserves along with the potential from new wells will give the country a pivotal role in the world energy market as demand from China and the US continues unabated.
"Simply put, we believe that Iraq is the best oil province in the world," Mr Teeling said at the announcement of Petrel's annual results. "Known resources of 115 billion barrels are only a fraction of what might be there," he added.
Petrel maintains that production has peaked and is already declining in most of the world's oil provinces while Iraq can contribute up to 6 million extra barrels a day.
Although other Middle East countries can also expand production, Mr Teeling pointed out that one attack on the big four million-barrel a day Saudi Arabian oil refinery can plunge the oil market into crisis and threaten the world economy.
Mr Teeling was critical of US policies in Iraq since the overthrow of Saddam Hussein saying that chaos was the inevitable result if dissolving the Iraqi bureaucracy. Mr Teeling added that Iraq's external debt of over $100 billion will have to be written off and massive aid injected to kick start the rehabilitation process.