In terms of oil reserves, Iraq is the fifth-ranked nation in the world, while in terms of output, it is ranked sixth. As for oil usage, it comes in at number 26 in the world. Iraq’s land may be one of the only areas where its known hydrocarbon resources are not fully utilized, with only a small portion of its recognized fields being developed.
Despite having sizable proven quantities of crude oil, Iraq’s oil output is increasing slowly because of the nation’s poor infrastructure and political unrest. However, in order to expand the nation’s capacity for producing oil, the government of this country has recently focused on the growth of Iraq’s oil infrastructure. More than 90% of Iraq’s energy demands are met by oil, with the remaining 10% coming from other sources including natural gas and hydroelectric facilities due to the country’s heavy reliance on oil in the energy industry. The obstacles to the growth of Iraq’s oil industry are political unrest and corruption.
Over the past few years, Iraq’s oil export income has increased. Part of this revenue growth is attributable to the spike in oil prices that followed Russia’s military invasion of Ukraine, while another part is because to the country’s increased oil production and exports.
Increased oil income is a great source of funding for meeting Iraq’s immediate needs, enhancing its infrastructure, and enhancing physical security. reviving the nation’s undeveloped private sector and, at last, diversifying the economy’s reliance on oil.
By raising infrastructure investments, modernizing service institutions, and removing obstacles to the growth of the private sector, the new Iraqi administration may make significant strides in the right direction. These initiatives set the groundwork for additional structural improvements.
Iraqis will gain from oil money investments in public infrastructure. The budget law states that 2023 is a great time to concentrate on important service industries like energy, health care, and education rather than raising spending on defense and security. The biggest benefits of working in Iraq’s energy sector are seen to be its huge reserves, areas with straightforward geological features, and last but not least, low cost of oil production. In the years 2035 to 2040, the Iraqi Ministry of Oil intends to boost the nation’s yearly natural gas production to 75 billion cubic meters. Iraq’s standing in the world’s energy supply and infrastructure could both increase if the country is successful in achieving the aforementioned objective.