Natural resources, energy and environment
Iraq has the world's fifth largest oil resources
after Venezuela, Saudi Arabia, Canada and Iran. At the
beginning of 2019, oil reserves were estimated at just
over 142 billion barrels, just under a tenth of the
world's known assets. The oil sector was nationalized in
1972 and the government is entirely dependent on income
from the state oil companies, but the recurring war
situations have both slowed production and created
environmental problems.
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COUNTRYAAH:
Major exports by Iraq with a full list of the top products exported by the country. Includes trade value in U.S. dollars and the percentage for each product category.
Iraq has the potential to become a major player in
the oil market that, by increasing or decreasing its own
production, could affect the world market price. In
2009-2010, expensive contracts were signed with foreign
companies to renovate some of the oil fields, which led
to a plan to rapidly increase production. 2012 reached
the highest levels in three decades, with 2.6 million
barrels a day. In December 2014, all previous records
were broken at a production rate of 4 million barrels a
day and the increase was expected to continue, partly
through expanded oil platforms in the Persian Gulf. But
production, despite a slight increase, has not reached
up to 5 million barrels.
The ambitious goals have been difficult to achieve
due to the political situation, but the progress made
shows that investments are making an impact. Increasing
oil production is generally now a priority goal.
However, in 2019, Iraq agreed to hold back, when
oil-producing countries agreed on restrictions to cause
oil prices to rise. Prices had fallen from 2014, roughly
at the same time as Iraq was drawn into an aggravated
civil war and forced to fight to expel the jihadist IS.
But in 2020, Iraq, like other oil extraction countries,
was forced to witness the price race: while the corona
pandemic slowed oil demand, a price war raged between
Saudi Arabia and Russia in particular. Oil prices
reached levels not seen since 2003.
About three-quarters of Iraq's oil is found in the
Basra region in the south. The country's largest oil
fields are Majnoon, West Qurna, East Baghdad, Kirkuk and
Rumaila. Iraq has several refineries, but they are old
and inefficient. Struggles have taken place, among other
things, around the large Baiji refinery in northern
Iraq.
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Abbreviationfinder: A popular acronym site in the world covering abbreviation for each country. For example, IZ stands for Iraq.
- SONGAAH:
Find lyrics of national anthem and all songs related to the country of Iraq.
Conflicts around the oil
The fact that most of the oil is found in Kurdish and
Shia Muslim areas has political significance, as it has
encouraged the Kurds and some Shi'a groups to work for
increased self-determination. During the 2010s, there
were fierce conflicts between the central government and
the Kurdish self-government, which controlled a large
part of the oil recovery but did not have their own
refineries and previously did not themselves deal with
oil. By agreement, the central government has handled
all oil trade, while the Kurds in return have been
allocated a fixed share of the income. However, the
Kurds issued their own oil law in 2007 and have since
signed a contract with foreign oil companies, which has
sparked fierce protests in Baghdad. In 2013, the Kurdish
Autonomous Government built oil pipelines to Turkey to
create opportunities for its own exports.
For several years, there has been a tug of war
between the central government and the self-government
over the state budget. Suspended salary payments from
the state to Kurdish personnel have put the Kurdish
areas under pressure. The first delivery of oil via the
new Turkish-Kurdish pipelines took place in the spring
of 2014, but the government of self-government had
difficulty finding buyers. According to some reports,
Israel bought some oil, but US courts ruled that the
Kurds were not allowed to sell oil in the United States
without Baghdad's permission. The Islamic State's
takeover of Mosul in 2014 and the continued attack on
Kurdish areas made the situation difficult and forced a
compromise, a new agreement between the central
government in Baghdad and the Kurdish autonomy
government in Erbil. In connection with the fighting
against IS, the Kurds came to check oil fields in the
disputed city of Kirkuk, but the Kurdish forces were
forced away in 2017 by Iraq's government army. At the
end of 2018, an agreement was once again signed between
Baghdad and Erbil on the conditions for resuming oil
exports, but that does not mean that the Kurdish claims
on Kirkuk have ended. The oil resources of the region
could give the Kurdish state formation sustainability.
Other natural resources
Iraq also has large natural gas deposits, although
they account for less than two percent of the world's
reserves. The gas is found both in the oil fields and in
separate fields, in both the south and the north. Iraq
has previously not invested in handling more than a
small part of the gas, but production is slowly
increasing and the goal is that no gas will be allowed
to burn at the sources of 2021. US's tightening policy
on Iran 2018 has also led to Iraq is under pressure to
reduce its gas imports.
Some other natural resources exist, mainly sulfur and
phosphate. The sulfur reserves in Mishraq are considered
among the largest in the world. Investigations indicate
that Iraq also has unused assets of iron, lead, copper,
manganese and zinc, among others.
Iraq, unlike most countries in the Middle East,
previously had plenty of water. But the water supply
from the Euphrates and Tigris rivers has led to
conflicts with Syria and Turkey, and 2018 became a year
of very severe drought. Through the Ataturk Dam in the
Euphrates, Turkey can control the flow of water into
Iraq. Syria can also control the flow via the Euphrates
Dam. Iraq has accused the two countries of abusing their
control over the water and allocating Iraq less water
than the country needs and is entitled to. The extremist
group IS briefly took control of the important Mosul Dam
in northern Iraq in 2014, but was driven by US-backed
Kurdish forces.
The water mains are getting old, with rust damage and
leaks that cause a lot of water to be wasted. In 2014,
there were plans for an ambitious upgrading of the
management network, but IS's takeover of the north put
the plans on its head. Large financial resources had to
be diverted to military operations to drive away IS.
Electricity and environment
In the past, almost all Iraqis had access to
electricity, which came partly from hydroelectric power
stations in the rivers. But during and after the Kuwait
War in 1991, many power stations and power lines were
bombed and the fighting after 2003, when Saddam
Hussein's regime overthrew, made the situation worse.
Despite major investments in reconstruction, electricity
shortages still exist, partly because demand has risen
sharply. It has been common with electricity zoning and
long interruptions, especially in the summer when
electricity needs increase. Many residents have provided
their own generators. After all, in the 2010s, progress
has been made. Generally, the electricity supply is more
reliable in the Kurdish areas, but there are also often
short interruptions there. In many areas that were taken
over by IS, the consequence also became severe
electricity supply problems. Reconstruction needs after
IS ravages,
In the fall of 2018, the Trump administration in the
United States intervened to stop the Iraqi government's
plans to conclude a contract with German Siemens to
build power plants. The result was that contracts were
signed with both Siemens and US General Electric.
Iraq's history from 1980 onwards has created major
environmental problems. One of them is the destruction
of the wetlands in the south (see Population and
Languages). Extensive irrigation systems have
caused soil degradation as large areas of land have been
salted. In many parts of the country, bombings of
factories and oil installations have released heavy
metals and other dangerous substances stored in the
ground and poisoned the waterways.
During the army's offensive in 2016–2017 to recover
the large city of Mosul from the terrorist sector IS,
environmental damage was caused, which was feared to
affect the population for many years. The problems were
mainly caused by IS tactics of igniting oil wells and a
factory for processing sulfur, but also by water
pollution and weapons and ammunition left behind.
Famous wetlands in the south, which the Iraqis know
as al-Ahwar, have been placed on the UN organization
UNESCO World Heritage List.
About our sources
FACTS - ENERGY AND ENVIRONMENT
Energy use per person
1,403 kilograms of oil equivalent (2014)
Electricity consumption per person
1296 kWh, kWh (2014)
Carbon dioxide emissions in total
168 444 thousand tons (2014)
Carbon dioxide emissions per inhabitant
4.8 tonnes (2014)
The share of energy from renewable sources
0.8 percent (2015)
Sources
2010
November
The leaders are re-elected
Parliament rallies and reelects Kurdish PUK leader Jalal Talabani as
president. Prime Minister Nuri al-Maliki from the Dawap Party gets the job of
forming a new "national unity government". It is approved in December and most
major party groups are included.
October
Terrorist attack on Catholic Church
Suspected members of Islamic State in Iraq enter a Catholic church in
Baghdad. The security police storm the church and in addition to the
perpetrators, 52 people are killed. The terrorist act is described as the worst
affliction of Iraq's Christian minority in modern times, leading to an increase
in the emigration of Christian Iraqis (see also Religion).
August
The United States ends combat operations
The last fighting US brigade leaves Iraq, just over seven years after the
invasion. The 50,000 people who remain will provide advice and education to the
Iraqis.
March
Legislative elections
Parliamentary elections are held, and despite a series of bomb attacks, it
can be carried out with the help of a large police raid. No alliance can be
proclaimed the obvious winner in the elections.
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