Energy In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of heat a ...

Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...

is mostly oil and

gas Gas is one of the four fundamental states of matter (the others being solid, liquid, and plasma). A pure gas may be made up of individual atoms (e.g. a noble gas like neon), elemental molecules made from one type of atom (e.g. oxygen), or ...

Overview

Oil production

In 2008, Iraq was the 9th highest crude oil exporter with 88 Mt. Oil provided 85% of government income. 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 PetroleumIrak huutokauppasi seitsemän öljykenttää
yle 12.12.2009
yle 11.12.2009 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 West Qurna ( ar, غرب قرنة) is one of Iraq's largest oil fields, located north of Rumaila field, west of Basra. West Qurna is believed to hold of recoverable reserves. Until 2009, the field was closed to Western firms. Phases West Qurna ...

oil:

Lukoil The PJSC Lukoil Oil Company ( stylized as LUKOIL or ЛУКОЙЛ in Cyrillic script) is a Russian multinational energy corporation headquartered in Moscow, specializing in the business of extraction, production, transport, and sale of petrol ...

85% and

StatoilHydro Equinor ASA (formerly Statoil and StatoilHydro) is a Norwegian state-owned multinational energy company headquartered in Stavanger. It is primarily a petroleum company, operating in 36 countries with additional investments in renewable energy. ...

15% * Majnoon oil field oil: Shell and

Petronas Petroliam Nasional Berhad (National Petroleum Limited), commonly known as Petronas, is a Malaysian oil and gas company. Established in 1974 and wholly owned by the Government of Malaysia, the corporation is vested with all oil and gas reso ...

Halfaya Field Halfaya Field is an oil field, located east of Amarah, Iraq. Halfaya is proven to hold of recoverable reserve and has production potential of , the China National Petroleum Corporation-led group finished the first phase in June 2012 and increas ...

CNPC The China National Petroleum Corporation (CNPC) () is a major national oil and gas corporation of China and one of the largest integrated energy groups in the world. Its headquarters are in Dongcheng District, Beijing. CNPC was ranked fourth ...

(

Total Total may refer to: Mathematics * Total, the summation of a set of numbers * Total order, a partial order without incomparable pairs * Total relation, which may also mean ** connected relation (a binary relation in which any two elements are comp ...

) * Qaiyarah and Najmah field:

Sonangol Group Sonangol ( pt, Grupo Sonangol) is a parastatal that formerly oversaw petroleum and natural gas production in Angola. The group consisted of Sonangol E.P. ( pt, Sociedade Nacional de Combustíveis de Angola, E.P.) and its many subsidiaries. ...

* Garraf field:

ja Japan Petroleum Exploration Company Limited

JAPEX is a hydrocarbon exploration, production, and transportation company. JAPEX explores and produces crude oil, natural gas, and liquefied natural gas reserves worldwide. JAPEX has proven reserves of 272 million barrels in Japan and the rest of th ...

* Badra field:

Gazprom PJSC Gazprom ( rus, Газпром, , ɡɐzˈprom) is a Russian majority state-owned multinational energy corporation headquartered in the Lakhta Center in Saint Petersburg. As of 2019, with sales over $120 billion, it was ranked as the larges ...

, Korea Gas Corporation (KOGAS) ja TPAO

Electricity

As of June 2013, the total capacity of the

electricity sector in Iraq Iraq's electricity generation primarily depends on fossil fuels. In 2021, natural gas was the largest source at 57.3% of the total, followed by oil at 36.7%. Renewable energy, mainly from hydroelectric power, contributed 5.9%. , the 30 gigawatts ...

is about 10,000

megawatt The watt (symbol: W) is the unit of Power (physics), power or radiant flux in the International System of Units, International System of Units (SI), equal to 1 joule per second or 1 kg⋅m2⋅s−3. It is used to quantification (science), ...

(MW). In 2006, the average peak electricity supply was 4,280 MW falling short of demand averaged 8,180 MW by about 3,950 MW. According to the

United States Department of Energy The United States Department of Energy (DOE) is an executive department of the U.S. federal government that oversees U.S. national energy policy and manages the research and development of nuclear power and nuclear weapons in the United Stat ...

officials, demand for electricity has been stimulated by a growing economy and a surge in consumer purchases of appliances and electronics. In addition, electricity is subsidized in Iraq, which leads to increased demand.

Policy

Oil revenues are the major income in the

economy of Iraq The economy of Iraq is dominated by the oil sector, which has provided about 99.7% of foreign exchange earnings during its modern history. As of 2021, the oil sector provides about 92% of foreign exchange earnings. Iraq's hitherto agrarian econom ...

. Based on data from BP at the end of 2009 the highest proved oil reserves including the non-conventional oil deposits are in 1)

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...

(18 per cent of global reserves) 2)

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...

(12%, mostly

oil sands Oil sands, tar sands, crude bitumen, or bituminous sands, are a type of unconventional petroleum deposit. Oil sands are either loose sands or partially consolidated sandstone containing a naturally occurring mixture of sand, clay, and wate ...

) 3)

Venezuela Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...

(12%, mostly tar sands) 4)

Iran Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...

(9%) and 5) Iraq (8%) 2011 report on oil and gas companies, Promoting revenue Transparency
Transparency International 2011 page 113

Oil prices

Iraq is a member of

OPEC The Organization of the Petroleum Exporting Countries (OPEC, ) is a cartel of countries. Founded on 14 September 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), it has, since 1965, been headquart ...

. 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 The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had supp ...

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 Bribery is the Offer and acceptance, offering, Gift, giving, Offer and acceptance, receiving, or Solicitation, soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With reg ...

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 Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...

. 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. 2011 report on oil and gas companies, Promoting revenue Transparency
Transparency International 2011 page 117

References

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