-A major disruption in Iraq’s oil output caused by the current sectarian conflict could return oil prices to levels not seen since 2008, according to a report by Securing America’s Future Energy. Via FuelFix, the group — which consists of former military leaders and energy experts — said the loss of only one-third of Iraq’s oil production, or 1 million barrels per day, would essentially eliminate global spare production capacity. The conflict has not resulted in any disruptions thus far, but recent supply shutdowns are unlikely to be restarted amid the violence.
-A new study shows oil and gas operations in the Cline Shale of west Texas will boost economic activity in surrounding counties by $20.5 billion by 2022. Via Platts, researchers at the University of Texas at San Antonio said oil and gas development would create 30,000 jobs in 10 counties in the eastern part of the Permian Basin. The study’s author noted this area contains large population centers like Abilene and San Angelo.
-ExxonMobil said its Billings, Mont., refinery operations had returned to normal after a small fire broke out last Friday. The incident came just a few days after a reported blaze at Phillips 66’s refinery in Billings.
-BP last week won its first new energy contract from the U.S. Department of Defense since the government lifted sanctions on the firm in the wake of the Deepwater Horizon disaster. Via the Wall Street Journal, the $45 million natural gas deal is BP’s first contract with the Pentagon in almost 18 months.
-BP is also set to sign a 20-year, $20 billion deal to supply LNG to China National Offshore Oil Corp. Via Reuters, much of the LNG will come from BP’s 3 million tons-per-year export facility in Freeport, Texas.
