Krg cease oil exports due t o ongoing dispute with the federal government. Oil exploration drilling began in iraq in 1902, with the first oil field discovered in 1923. This book provides an authoritative evaluation of iraq as an e and p petroleum investment. Oil and minor condensate is about 89% of the perbarrel oil equivalent in iraq. Imports from iraq of crude oil thousand barrels per day decade year0 year1 year2 year3 year4 year5 year6 year7 year8.
Iraq close to pipeline deal with oil majors bp and eni. Saddam viewed an invasion of kuwait as a means to raise world oil prices, thereby increasing iraq s own revenue. As a result, iraq s economy depends on the oil sector and is vulnerable to changes in oil prices. Deloitte report on kurdistan oil and gas new data iraq.
For example, oil export revenues account for over half of iraq s gross domestic product and over 90 percent of government revenues. In 1927 the iraq petroleum company discovered the baba dome the old fashioned way with an uncontrolled gusher reaching 50 feet above the derrick that flowed uncontrollably at 95,000 bopd for nine days. Iraq has not yet reached its full oil market share, says pm. May 15, 2007 since 2003, the united states has provided several billion dollars in reconstruction funds to help rebuild iraq oil and electricity sectors, which are crucial to rebuilding iraq s economy. In this tomdispatch article, dilip hiro presents evidence detailing us ambitions for iraqs oil industry prior to the 2003 invasion.
Eias oil industry experts generally assessed iraq s sustainable production capacity at no higher than about 2. May 12, 2003 issam alchalabi, iraqs oil minister from 1987 to 1990, admitted in the march 24, 2003 issue of the ogj that iraqs oil figures are preliminary in nature since work was often interrupted. The oil discoveries contain recoverable reserves of about 7 billion barrels of oil gbo and 93 trillion cubic feet of gas tcfg. Said edited by, oil wars, pluto press, london and ann arbor, 2007, pp.
Despite the record of three years of failed oil negotiations, revenue sharing represents a possibly unique area of potential compromise that should be explored further. Iraq s stated proven oil reserves of 115 billion barrels while perhaps somewhat overestimated during the rule of saddam hussein are among the largest in the world. Oil reserves in iraq are considered the worlds fifthlargest proven oil reserves, with 140 billion barrels. Imports from iraq of crude oil and petroleum products.
Iraq has about 10 percent of the worlds proven oil reserves and resources. The largest oil fields are rumaila 30 gbo, kirkuk 25 gbo, and east baghdad 16 gbo. With 115 billion barrels of proven crude oil reserves, iraq has the worlds secondlargest endowment of oil, amounting to. Basra oil company deputy director general khalid hamza abbas. Jul 30, 20 in the fall and rise and fall of iraq, kenneth m. An original signed hard copy of the signature page is on file in university archives. Iraq invasion was about oil nafeez ahmed environment. In much the same way, this excellent history of the iraq occupation and the subsequent role of oil and politics in postinvasion iraq is a secret history, disclosing facts not revealed by the news agencies in the united states, at least and not generally known by the public at large. Iraqs stated proven oil reserves of 115 billion barrels while perhaps somewhat overestimated during the rule of. According to paul oneill, the former treasury secretary under president bush, and falah al jibury an iraqiamerican oil consultant, iraq and its vast oil reserves were discussed within weeks of president george bush being elected in january 2001. The sources for this oil is primarily located in the shiite muslimsmajority and arab sunni muslimsdominated areas on the other hand are comparatively lacking. Egypt and yemen are net gas exporters but net oil importers. How bp secretly renegotiated its iraqi oil contract, and how.
Just a fraction of iraq s known fields are in development, and iraq may be one of the few places left where vast reserves, proven and unknown, have barely been exploited. Iraq energy chronology 19802004 and iraq country analysis, energy information administration, u. The regional council of oil and gas affairs expects the release of the fourth report covering oil exports, consumption and revenues for second quarter of 2018 1 april to 30 june in the near future. Order code rs21626 updated april, 2005 crs report for. When they are completed the provinces oil and gas wealth distribution map may radically change. On the oil war concept and on the differences between old and new ones, see m. Iraq also claims that oil production capacity expansion has been constrained by the refusal of the united nations to provide iraq with all the oil industry equipment it has requested. Under the model contract, the cost of complying with any quota had been shared between government and company. Iraq to cut oil output at nahr bin omar oil field arab news. The kuwaiti oil fires were caused by iraqi military forces setting fire to a reported 605 to 732 oil wells along with an unspecified number of oil filled lowlying areas, such as oil lakes and fire trenches, as part of a scorched earth policy while retreating from kuwait in 1991 due to the advances of usled coalition forces in the persian gulf war. Iraq holds an important place in the political development and economic trend of the international oil market both historically and at the present time. Investment factsheet kurdistan region syria iraq kirkuk iran. Here are a few questions and answers to clarify the complex issue.
The british occupation of iraq did more harm than good for the iraqi people. Mineral wealth has been a key underlying factor in iraqs development since the 1950s. A comprehensive survey of iraqi fields suggests the oil ministry is targeting about 600,000 bpd of production cuts in may, mostly from fields contracted to international oil companies. Feb 09, 2010 independent inquiry committee in the united nations oilforfood programme, tables published on october 21, 2004 300page pdf file, fox news. Iraq is close to reaching a deal with oil majors bp and eni for an export pipeline project that was initially planned as part of. As of 2017, the uae and kuwait are oil exporters but gas importers. Iraqs iraq national oil company inoc was an early leader in international oil policy and could play a similar role in the future. Ferruh demirmen examines western influence in iraq s oil industry, from the creation of the turkish petroleum company in 1911 by the uk, the netherlands and germany to the entry of us oil giants after world war i.
Pdf oil and gas fields in iraq are distributed in geographic locations with giant oil fields toward the east and giant gas field toward the west of. The iraqi ministry of oil moo master plan 2007 included the iraq crude oil export expansion project icoeep to expand the south oil companys export capacity from 1. Iraq s oil s ssues and rice universitys baker institute. Oil revenues crash, dragging iraq deeper into crisis. Krg ministry of natural resources announces intention to build its own export pipeline to turkey. Ferruh demirmen examines western influence in iraqs oil industry, from the creation of the turkish petroleum company in 1911 by the uk, the netherlands and germany to the entry of us oil giants after world war i.
Iraq systematic country diagnostic february 3, 2017. Kurdish forces took control of the city of kirkuk on june 11, and now control the oil producing area around the giant kirkuk field. Oil and gas revenue sharing in iraq natural resource governance. Towards good governance of the oil and gas sector in the mena. Contracts concluded with foreign oil companies which are contracted to work in iraq or its branches or offices and the parties subcontracting with it in the field of the production and extraction of oil and gas and their related industries are subject to 35% income tax on income realized inside of iraq. Iraq is redeveloping its oil and natural gas resources after years of sanctions and wars. Flames emerge from a pipeline at rumaila oilfield in basra file. Jan 31, 2020 iraq also claims that oil production capacity expansion has been constrained by the refusal of the united nations to provide iraq with all the oil industry equipment it has requested. Iraq was the worlds 5th largest oil producer in 2009, and has the worlds fifth largest proven petroleum reserves. It should be mentioned that exploration operations are still under way in iraq. Us oil interests and the iraq war nayna j jhaveri department of geography, university of washington, wa, usa.
The worlds fourth largest oil exporter, iraq also holds the worlds fifth largest proven reserves of petroleum. Just a fraction of iraqs known fields are in development, and iraq may be one of the few places left where vast reserves, proven and unknown, have barely been exploited. Us buys up iraqi oil to stave off crisis world news the. Investment factsheet kurdistan region iraq turkmen, armenians per usd.
The river drains the combined waters of the euphrates and tigris rivers of iraq, and the karun river of iran. Congressional research service, updated 25 july 2007. Additionally, the sulaimaniya province possesses two large gas fields, chemchemal and kormor. Revenue sharing case study oil and gas revenue sharing in iraq. His state department has pointed to a precedent in the us interpretation of international.
Oil markets have reacted strongly to the turmoil in iraq, the worlds seventh largest oil producer, in recent weeks. Analysis of iraqi media coverage on the energy sector. Pollack traces the narrative arc of iraqs fortunes from the american invasion in 2003 to the present day. Pdf this article provides evidence on the economic and social importance of the oil sector in iraq. Oil and gas revenue sharing in iraq summary this study provides an overview of iraqs oil and gas revenue sharing, that is, the revenue that the iraq national government earns from extraction and then redistributes to subnationalprovincial and regionalgovernments. Oil experts believe that iraq has immense oil resources. The countrys production grew at a slower rate than the. Order code rs21626 updated april, 2005 crs report for congress. Deloittes report for the first three months of 2018 is accessible through this link pdf, in. The oil wealth of kuwait appealed to saddams need to erase his debts with other arab nations. Create an account to be able to download free publications and make purchases on the iea webstore. Bahrain exports a very small fraction of its oil production. Are assumptions and statements being made factually correct and comprehensible.
Issam alchalabi, iraqs oil minister from 1987 to 1990, admitted in the march 24, 2003 issue of the ogj that iraqs oil figures are preliminary in nature since work was often interrupted. If iraqs transport and export infrastructure is not. Iraq s economy is dependent on the oil and gas sector. Issues and opportunities 6 in recent years, war, economic sanctions and now civil strife have prevented iraq from substantially increasing its oil production capacity. Corruption, reconstruction and oil governance in iraq article pdf available in third world quarterly 264. As the oil ministry seeks cost savings and production cuts in response to crashing oil prices, drilling programs are being cut battering the business of iraqs staterun drilling company. Much of the sediment clouding the water in this image of the persian gulf is from the shatt al arab river, which enters the gulf in the north along the iran iraq border.
More than 90 percent of iraq s annual federal budget comes from oil revenues, and as of 2012, revenues from oil account for about twothirds of iraq s gross domestic product gdp. Geographical distribution of iraqi oil fields and its. Eias oil industry experts generally assessed iraqs sustainable production capacity at no higher than about 2. Iraq was a founding member of the cartel of the organization of petroleum exporting countries opec and was among the first oil producing countries to nationalize some of its oil fields in 1961. New monthly data for november and december 2019, new annual data, and updated analyses and quick facts drilling productivity report press releases presentations congressional testimony radio.
Much of the sediment clouding the water in this image of the persian gulf is from the shatt al arab river, which enters the gulf in the north along the iraniraq border. About 8 percent of iraqs proven reserves are located in central mesopotamia, and 17 percent of the reserves are in the northern zagros foldbelt. Iraqs prime minister said the country has not yet reached its full oil market share, suggesting his government would not restrain crude output as. Baghdad iraqs federal authorities and the cashstrapped kurdish regional government krg have relaunched talks over longstanding oil and budget disputes, but observers are sceptical they will reach a genuine diplomatic reset.
Imports from iraq of crude oil thousand barrels per day. Yesterday was the 11th anniversary of the 2003 iraq war yet to this day, few media reflections on the conflict accurately explore the extent to which opening up. Iraq is redeveloping its oil and natural gas reserves after years of sanctions and wars. Independent inquiry committee in the united nations oilforfood programme, tables published on october 21, 2004 300page pdf file, fox news. Analysis of iraqi media coverage on the energy sector unesco. Krg approves trucked oil exports from taq taq field to turkey. Saudi arabia, oman, iraq and bahrain consume the same amount of gas that they produce. Pdf corruption, reconstruction and oil governance in iraq. The dovish line, led by colin powell, places the emphasis on protection of iraqs oil for iraqs people. The dovish line, led by colin powell, places the emphasis on protection of iraq s oil for iraq s people. If iraqi oil production is restrained by a future opec quota, the iraqi government would pay bpcnpc as much for not producing oil as they would for producing it. Serious challenges impair efforts to restore iraqs oil sector and enact hydrocarbon legislation joseph a. That means that kurdistans currently known oil reserves represent about 3% of the total.
Could baghdaderbil end iraqs protracted oil dispute. Iraq has been described as being founded as an oil company. The present project aims to address the following challenges. Pollack traces the narrative arc of iraq s fortunes from the american invasion in 2003 to the present day. With 115 billion barrels of proven crude oil reserves, iraq has the worlds secondlargest endowment of oil, amounting to 11% of the global total. Since the discovery of oil in the middle east in 1908, western powers have sought dominance over the regions resources. Due to such a shortage of electricity supply, many areas of iraq rely on smaller generating units attached to homes, offices, factories and facilities, which also require an increasing supply of oil or. However, the development of iraqs petroleum sector has been severely hampered by decades of war, sanctions. Governoratesand capital erbil capital, slemani, duhok population i5. But specialists agree that the oil potential of iraq is significant and could be major factor influencing oil supply and pricing trends in the coming two. Pdf petroleum systems of iraqi oil fields researchgate. The british policies in iraq excluded the iraqis from participating in the political process of their own country.
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