Energy in Iraq

{{See also|Oil reserves in Iraq}}

File:OilProduction.Iraq1990-2015.png

In 2008, Iraq was the 9th highest crude oil exporter with 88 Mt.IEA Key statistics 2010 In 2023, Iraq exported an average of 3,466,750/barrel/day,{{cite web |url=https://www.ceicdata.com/en/indicator/iraq/crude-oil-exports |title=Iraq Crude Oil: Exports |website=CEIC Data |access-date=5 January 2025}} and in early 2024 was estimated to be the 5th largest oil exporter in the world.{{cite web |url=https://www.investopedia.com/articles/company-insights/082316/worlds-top-10-oil-exporters.asp |title=The World's 10 Biggest Oil Exporters |website=Investopedia |access-date=5 January 2025}}

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.{{cite web |url=https://www.worldbank.org/en/country/iraq/overview |title=The World Bank in Iraq |website=World Bank Group |access-date=5 January 2025 |date=6 June 2022}} 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 {{convert|2.5|Moilbbl|m3|adj=off}} to {{convert|7|Moilbbl/d|m3/d|adj=off}} in six years. In June 2009 oil production rights in the Rumaila oil field were sold to BP and China National Petroleum[http://www.yle.fi/uutiset/Irak%20huutokauppasi%20seitsemän%20öljykenttää%20%20Ulkomaat%20%20YLE%20Uutiset%20%20yle_fi.htm Irak huutokauppasi seitsemän öljykenttää]{{Dead link|date=December 2019 |bot=InternetArchiveBot |fix-attempted=yes }} yle 12.12.2009[http://www.yle.fi/uutiset//ulkomaat/2009/12/irak_huutokauppaa_oljykenttia_1264652.html Irak huutokauppaa öljykenttiä] yle 11.12.2009 for 20 years contracts. Investments are estimated as $10–20 billion. Field reserves are {{convert|16.998|Goilbbl|m3}}. In October 2009 Rumaila's capacity was {{convert|1.1|Moilbbl/d|m3/d}}. Iraq's total oil production was {{convert|2.4|Moilbbl/d|m3/d|abbr=on}}.{{cite news |url=https://www.reuters.com/article/iraq-oil-idUSL820863520091008 |title=Iraq signs deal with BP, CNPC for Rumaila field |agency=Reuters |first=Ahmed |last=Rasheed |date=8 October 2009}}File:Electrical substation in Baghdad.jpg]]A second auction took place in December 2009, and Iraq sold rights to seven oil fields for 20 years, increasing oil production {{convert|4.7|Moilbbl/d|m3/d}} in future. The production companies will receive between $1 and $5.5 per barrel produced:

• West Qurna Field {{convert|13|Moilbbl|m3|adj=on}} oil: Lukoil 85% and StatoilHydro 15%
• Majnoon oil field {{convert|13|Moilbbl|m3|adj=on}} 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

{{excerpt|Electricity sector in Iraq}}

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.

Iraq consumed significantly more natural gas than it produced in 2021, primarily for electric power generation. The country also flared over 630 billion cubic feet (Bcf) of natural gas in 2022 due to inadequate pipeline and processing infrastructure, making it the second-largest flaring country globally. To address flaring and meet domestic needs, Iraq has delayed its goal to eliminate flaring to 2027 and is working on expanding its natural gas processing capacity.

In 2022, Iraq was the second-largest contributor to global gas flaring, highlighting its ongoing challenges in managing flaring despite having substantial natural gas reserves. This significant flaring rate underscores the need for improved infrastructure and regulations to better utilize gas for domestic energy and reduce environmental impacts.{{Cite report |url=https://thedocs.worldbank.org/en/doc/5d5c5c8b0f451b472e858ceb97624a18-0400072023/original/2023-Global-Gas-Flaring-Tracker-Report.pdf |title=Global Gas Flaring Tracker Report |date=March 2023}}

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”.{{Cite web |title=Addressing Human Resource and Development Concerns in Iraq’s Oil and Gas Sector {{!}} The Washington Institute |url=https://www.washingtoninstitute.org/policy-analysis/addressing-human-resource-and-development-concerns-iraqs-oil-and-gas-sector |access-date=2024-08-12 |website=www.washingtoninstitute.org |language=en}} As of mid-2024, oil exports to Turkey were very low.{{Cite web |title=BP and Iraq to Develop Oilfields in Kirkuk |url=https://oilprice.com/Latest-Energy-News/World-News/BP-and-Iraq-to-Develop-Oilfields-in-Kirkuk.html |access-date=2024-08-12 |website=OilPrice.com |language=en}}

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.[http://www.transparency.org/content/download/59374/951162/TI_PRT_2011_report_FINAL_EN.pdf 2011 report on oil and gas companies, Promoting revenue Transparency] {{Webarchive|url=https://web.archive.org/web/20110602213650/http://www.transparency.org/content/download/59374/951162/TI_PRT_2011_report_FINAL_EN.pdf|date=2011-06-02}} Transparency International 2011 page 113

{{Main| Corruption in Iraq}}

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.[http://www.transparency.org/content/download/59374/951162/TI_PRT_2011_report_FINAL_EN.pdf 2011 report on oil and gas companies, Promoting revenue Transparency] {{Webarchive|url=https://web.archive.org/web/20110602213650/http://www.transparency.org/content/download/59374/951162/TI_PRT_2011_report_FINAL_EN.pdf |date=2011-06-02 }} Transparency International 2011 page 117

• Climate change in Iraq
• History of Iraq
• Geography of Iraq
• Oil megaprojects (2011)

{{reflist}}

{{Middle East topic|Energy in}}

{{Energy in OPEC}}

{{Portal|Iraq|Energy}}

{{Commons category|Energy in Iraq}}

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