Energy in Iraq

In 2008, Iraq was the 9th highest crude oil exporter with 88 Mt. In 2023, Iraq exported an average of 3,466,750/barrel/day, and in early 2024 was estimated to be the 5th largest oil exporter in the world. Iraq's economy is very oil-dependent and from 2012-2022 oil revenues accounted for more than 99% of Iraq's exports, 85% of the government's budget, and 42% of Iraq's GDP. Iraq's oil reserves were the third biggest in the world, after Saudi Arabia and Iran. In 2009 the Iraq government set a target to increase oil production from to in six years. In June 2009 oil production rights in the Rumaila oil field were sold to BP and China National Petroleum for 20 years contracts. Investments are estimated as $10–20 billion. Field reserves are . In October 2009 Rumaila's capacity was . Iraq's total oil production was .A second auction took place in December 2009, and Iraq sold rights to seven oil fields for 20 years, increasing oil production in future. The production companies will receive between $1 and $5.5 per barrel produced: • West Qurna Field oil: Lukoil 85% and StatoilHydro 15% • Majnoon oil field oil: Shell and Petronas • Halfaya Field: CNPC (Petronas / Total) • Qaiyarah and Najmah field: Sonangol • Garraf field: Petronas ja Japan Petroleum Exploration Company Limited JAPEX • Badra field: Gazprom, Petronas, Korea Gas Corporation (KOGAS) ja TPAO Electricity ==Gas==

Iraq holds the 12th largest natural gas reserves in the world, estimated at 131 trillion cubic feet (Tcf) at the end of 2022, predominantly located in large oil fields in the south and mostly associated with oil production. Despite these substantial reserves, Iraq faces regulatory, investment, and infrastructure challenges, which have kept natural gas production largely unchanged since 2016. The majority of Iraq's natural gas, about two-thirds, is produced as a byproduct of oil extraction. Following production cuts in 2020 due to the OPEC+ agreement, natural gas production dropped but recovered in 2021 with increases in both associated and non-associated gas production. == Policy ==

Oil revenues are the major income in the economy of Iraq. The management of the oil and gas sector has been criticised as “technically incompetent”. As of mid-2024, oil exports to Turkey were very low. Oil prices Iraq is a member of OPEC. The global oil and gas prices have been strongly influenced by political decisions and events. For example, the oil embargo 1967 and 1973 oil crisis during the 1970s, the Iran-Iraq War in the 1980s, the Iraq-Kuwait War in the 1990s and the Iraq War from 2003. Corruption risks One of the corruption risks is that the oil resources are publicly owned but often privately produced. The complex system of licenses and fees may drive corruption incentives. According to Transparency International Bribe Payers Index 2008, the oil and gas industry in general is highly vulnerable to 1) bribery of public officials and 2) undue influence on the legislative process and government policies. IMF Working Paper confirms the relationship between oil rents and corruption. Higher increases in oil rents tends to increase corruption and erode political rights. Open Budget Survey 2008 by International Budget Partnership confirmed that the oil- and gas-dependent countries tend to be less transparent. == See also ==