Editing Economy of Iraq (section)

=== Energy ===
{{See also|Energy in Iraq|Petroleum industry in Iraq}}
[[File:Map-of-countries-by-proven-oil-reserves-(in-millions-of-barrels)---2017---US-EIA---Jo-Di-graphics.jpg|thumb|upright=1.5|A map of world [[oil reserves]] according to U.S. EIA, 2017]]

Iraq is one of the most oil-rich countries in the world. The country holding the fifth largest proven crude oil reserves,{{r|WB18|p=5}} totaling 147.22 billion barrels at the end of 2017.<ref>{{Cite web|url=https://www.opec.org/opec_web/en/data_graphs/330.htm|title=OPEC : OPEC Share of World Crude Oil Reserves|website=www.opec.org|access-date=2019-03-31|archive-date=25 August 2017|archive-url=https://web.archive.org/web/20170825142633/http://www.opec.org/opec_web/en/data_graphs/330.htm|url-status=live}}</ref> Most of this oil—4 million barrels per day out of 4.3 million barrels produced daily—is exported, making Iraq the third-largest exporter of oil.{{r|WB18|p=5}} Despite its ongoing civil war, Iraq was able to increase oil production during 2015 and 2016, with production dipping by 3.5 per cent in 2017 due to conflict with the [[Kurdistan Regional Government]] and OPEC production limits.{{r|WB18|p=5}} By world standards, production costs for Iraqi oil are relatively low.<ref>{{cite news |author1=WSJ News Graphics |title=Barrel Breakdown |url=http://graphics.wsj.com/oil-barrel-breakdown/ |access-date=30 August 2018 |work=The Wall Street Journal |date=15 April 2016 |archive-date=31 December 2017 |archive-url=https://web.archive.org/web/20171231165318/http://graphics.wsj.com/oil-barrel-breakdown/ |url-status=live }}</ref> However, four wars<ref name=Calamur>{{cite news |last1=Calamur |first1=Krishnadev |title=Oil Was Supposed to Rebuild Iraq |url=https://www.theatlantic.com/international/archive/2018/03/iraq-oil/555827/ |access-date=30 August 2018 |work=The Atlantic |date=19 March 2018 |archive-date=29 June 2018 |archive-url=https://web.archive.org/web/20180629211732/https://www.theatlantic.com/international/archive/2018/03/iraq-oil/555827/ |url-status=live }}</ref>—the 1980–1988 [[Iraq-Iran War]], 1991 [[Gulf War]], the 2003&ndash;2011 [[War in Iraq]], and the [[Iraqi Civil War (2014–2017)|civil war]]—and the 1991–2003 UN sanctions have left the industry's infrastructure in poor condition, and the de facto independence of oil-rich [[Kurdistan Region]] have limited production.{{r|WB18|pp=5-6}}
[[File:US Navy 090328-N-0803S-012 Sailors walk along Iraq's Khawr Al Amaya Oil Platform (KAAOT). U.S. and Coalition forces guard the Khawr Al Amaya Oil Platform.jpg|left|thumb|Khawr Al Amaya Oil Platform in [[Basra Governorate]]]]
[[File:Power plant in Dora.jpg|thumb|Power plant and oil refinery in Baghdad]]
In the 1970s, Iraq produced over 3.5 million barrels of oil per day. Production began to fall during the Iran-Iraq War, before plummeting 85 per cent after the 1991 invasion of Kuwait. UN sanctions prevented the export of oil until 1996, and then allowed exports only in exchange for humanitarian aid in the [[Oil-for-Food Programme]].<ref name=Calamur />
The 2003 lifting of sanctions enabled production—and exports—to restart.<ref name=Calamur /> Production has since recovered to pre-Gulf War levels, and most of Iraq's oil infrastructure has been repaired, despite persistent sabotage by the [[Islamic State of Iraq and the Levant|Islamic State]] (ISIL) and others.<ref>{{cite news |last1=Xhemaj |first1=Valdrin |title=Iraq: what happened to the oil after the war? |url=https://theconversation.com/iraq-what-happened-to-the-oil-after-the-war-62188 |access-date=30 August 2018 |work=The Conversation |date=8 July 2016 |archive-date=30 August 2018 |archive-url=https://web.archive.org/web/20180830074216/https://theconversation.com/iraq-what-happened-to-the-oil-after-the-war-62188 |url-status=live }}</ref> In 2004, Iraq had eight oil refineries, the largest of which were at [[Baiji, Iraq|Baiji]], [[Basra]], and Daura.<ref name=Kumins />

Despite its oil wealth, sabotage and technical problems at refineries have forced Iraq to import petroleum, other refined oil products, and electricity from the neighbouring countries, especially Iran.<ref name=Coles>{{cite news |last1=Coles |first1=Isabel |last2=Nabhan |first2=Ali |title=Oil-Rich Iraq Can't Keep the Lights On |url=https://www.wsj.com/articles/oil-rich-iraq-cant-keep-the-lights-on-1532174400 |access-date=30 August 2018 |work=The Wall Street Journal |date=21 July 2018 |archive-date=30 August 2018 |archive-url=https://web.archive.org/web/20180830043851/https://www.wsj.com/articles/oil-rich-iraq-cant-keep-the-lights-on-1532174400 |url-status=live }}</ref> In 2004, for example, Iraq spent $60 million per month for imported gasoline. Sabotage
In late 2004 and early 2005, regular sabotage of plants and pipelines reduced export and domestic distribution of oil, particularly to Baghdad. Nationwide fuel shortages and power outages resulted.<ref name=Kumins>{{cite report |last=Kumins |first=Lawrence |date=13 April 2005 |title=Iraq Oil: Reserves, Production, and Potential Revenues |url=https://fas.org/sgp/crs/mideast/RS21626.pdf |publisher=Congressional Research Service |docket=RS21626 |access-date=29 August 2018 |archive-date=27 September 2018 |archive-url=https://web.archive.org/web/20180927114519/https://fas.org/sgp/crs/mideast/RS21626.pdf |url-status=live }}</ref> Persistent ISIL sabotage of pipelines, power plants and power lines, and theft of oil and electricity have also contributed to the [[2015–2018 Iraqi protests#2018|July 2018 protests]] in southern Iraq.<ref name=Coles />

In 2004, plans called for increased domestic utilization of natural gas to replace oil and for use in the [[petrochemical industry]]. However, because most of Iraq's gas output is associated with oil, output growth depends on developments in the oil industry.

Half of Iraq's power plants were destroyed in the [[Persian Gulf War of 1991]], and full recovery never occurred.<ref>{{cite book |title=CONDUCT OF THE PERSIAN GULF WAR |date=April 1992 |publisher=US Congress |location=Washington, DC |chapter=VI: The Air Campaign}}</ref> In mid-2004, Iraq had an estimated 5,000 megawatts of power-generating capacity, compared with 7,500 megawatts of demand.<ref name=Luay /> At that time, the transmission system included 17,700 kilometers of line. In 2004, plans called for construction of two new power plants and restoration of existing plants and transmission lines to ease the blackouts and economic hardship caused by this shortfall, but sabotage and looting kept capacity below 6,000 megawatts. The ongoing civil war, sabotage of transmission lines, and [[corruption in Iraq|government corruption]] caused the electricity shortage to worsen: by 2010 demand outstripped supply by 6000 megawatts.<ref name=Luay>{{cite report |author=Luay Al-Khatteeb |author2=Harry Istepanian |name-list-style=amp |date=March 2015 |title=Turn a Light On: Electricity Sector Reform in Iraq |url=https://www.brookings.edu/wp-content/uploads/2016/06/Alkhatteeb-Istepanian-English-PDF.pdf |publisher=Brookings Institution |access-date=29 August 2018 |archive-date=28 July 2018 |archive-url=https://web.archive.org/web/20180728234556/https://www.brookings.edu/wp-content/uploads/2016/06/Alkhatteeb-Istepanian-English-PDF.pdf |url-status=live }}</ref>

Oil continues to dominate Iraq's economy. {{As of|2018}}, oil is responsible for over 65 per cent of GDP and 90 per cent of total government revenue.<ref name=WB18>{{cite report |date=Spring 2018 |title=Iraq Economic Monitor: From War to Reconstruction and Economic Recovery |url=http://documents.worldbank.org/curated/en/771451524124058858/pdf/125406-WP-PUBLIC-P163016-Iraq-Economic-Monitor-text-Spring-2018-4-18-18web.pdf |publisher=[[World Bank Group]] |access-date=29 August 2018 |archive-date=16 July 2018 |archive-url=https://web.archive.org/web/20180716154604/http://documents.worldbank.org/curated/en/771451524124058858/pdf/125406-WP-PUBLIC-P163016-Iraq-Economic-Monitor-text-Spring-2018-4-18-18web.pdf |url-status=live }}</ref> [[Petroleum industry in Iran|Petroleum]] constitutes 94% of Iraq's exports with a value of $59.73 billion in 2017.<ref>{{Cite web|url=https://www.opec.org/opec_web/en/about_us/164.htm|title=Iraq facts and figures|last=OPEC|date=2018|website=www.opec.org|access-date=29 July 2018|archive-date=21 June 2019|archive-url=https://web.archive.org/web/20190621181314/https://www.opec.org/opec_web/en/about_us/164.htm|url-status=live}}</ref> The central government hopes to diversify the economy away from oil, and has had some success: non-oil GDP growth, which was below the regional average from 2014 to 2016, pushed above the average in 2017.{{r|WB18|p=4}} Despite this, the percentage of government spending going to non-oil investment has continued to decline since 2013 and now{{When|date=October 2024|reason=Needs a year for clarification (or an updated figure).}} stands at only 34 per cent.{{r|WB18|p=4}}

==== 2009 oil services contracts ====
{{update|section|date=August 2018}}
Between June 2009 and February 2010 the [[Ministry of Oil (Iraq)|Ministry of Oil]] tendered for the award of Service Contracts to develop Iraq's existing oil fields. The results of the tender, which were broadcast live on Iraqi television, are as follows for all major fields awarded but excluding the [[Kurdistan Region]] where Production Sharing Contracts have been awarded that are currently being disputed by the Baghdad government. All contracts are awaiting final ratification of the awards by the Iraqi government. Company shares are subject to change as a result of commercial negotiations between parties.

{| class="wikitable"
|-
! Field
! Company
! Home country
! Company type
! Share in field
! Production increase share
! Service fee per bbl
! Gross revenue at plateau - US bn p.a.
! References
|-
| [[Majnoon oil field|Majnoon]]
| [[Royal Dutch Shell|Shell]]
| Netherlands
| Public
| 45%
| 0.7875
| 1.39
| 0.4
| [http://news.bbc.co.uk/1/hi/8407274.stm BBC] {{Webarchive|url=https://web.archive.org/web/20120307105947/http://news.bbc.co.uk/1/hi/8407274.stm |date=7 March 2012 }}
|-
|
| [[Petronas]]
| Malaysia
| State
| 30%
| 0.525
| 1.39
| 0.266
| [https://web.archive.org/web/20091214170521/http://www.shell.com/home/content/media/news_and_library/press_releases/2009/iraq_majnoon_contract_11122009.html Shell]
|-
| [[Halfaya Field|Halfaya]]
| [[CNPC]]
| China
| State
| 37.5%
| 0.525
| 1.39
| 0.102
| [http://www.upstreamonline.com/live/article201498.ece Upstream] {{Webarchive|url=https://web.archive.org/web/20160112213319/http://www.upstreamonline.com/live/article201498.ece |date=12 January 2016 }}
|-
|
| [[Petronas]]
| Malaysia
| State
| 18.75%
| 0.099
| 1.4
| 0.051
| [http://www.upstreamonline.com/live/article204570.ece Upstream] {{Webarchive|url=https://web.archive.org/web/20120926032236/http://www.upstreamonline.com/live/article204570.ece |date=26 September 2012 }}
|-
|
| [[TotalEnergies]]
| France
| Public
| 18.75%
| 0.099
| 1.39
| 0.051
|
|-
| [[Rumaila oil field|Rumaila]]
| [[BP]]
| UK
| Public
| 37.5%
| 0.7125
| 2
| 0.520
| [https://web.archive.org/web/20090727090536/http://www.businessweek.com/globalbiz/content/jul2009/gb20090724_632771.htm Business Week]
|-
|
| [[CNPC]]
| China
| State
| 37.5%
| 0.7125
| 1.39
| 0.520
|
|-
| [[Az Zubayr|Zubair]]
| [[Eni|ENI]]
| Italy
| Public
| 32.81%
| 0.328
| 2
| 0.240
| [https://web.archive.org/web/20091107025815/http://www.businessweek.com/magazine/content/09_46/b4155000179541.htm Business Week]
|-
|
| [[Occidental Petroleum|Occidental]]
| US
| Public
| 23.44%
| 0.2344
| 2
| 0.171
| [http://www.businessweek.com/ap/financialnews/D9DCOPK80.htm Business Week]{{dead link|date=January 2025|bot=medic}}{{cbignore|bot=medic}}
|-
|
| [[KOGAS]]
| Korea
| State
| 18.75%
| 0.1875
| 2
| 0.137
| [http://www.upstreamonline.com/live/article204637.ece Business Week] {{Webarchive|url=https://web.archive.org/web/20111007122955/http://www.upstreamonline.com/live/article204637.ece |date=7 October 2011 }}
|-
| [[West Qurna Field]] Phase 2
| [[Lukoil]]
| Russia
| Public
| 75.00%
| 1.3500
| 1.15
| 0.567
| [https://web.archive.org/web/20091107025815/http://www.businessweek.com/magazine/content/09_46/b4155000179541.htm Business Week]
|-
|
| [[Equinor]]
| Norway
| State
| n/a<ref>{{Cite news |url=https://af.reuters.com/article/energyOilNews/idAFL5E8E714T20120307 |title=Iraq approves Statoil sale of oil field stake to Lukoil |publisher=af.reuters.com |access-date=2012-03-07 |newspaper=Reuters |date=2012-03-07 |archive-date=4 March 2016 |archive-url=https://web.archive.org/web/20160304064349/http://af.reuters.com/article/energyOilNews/idAFL5E8E714T20120307 |url-status=dead }}</ref>
| n/a
| n/a
| n/a
| [http://www.statoil.com/en/NewsAndMedia/News/2010/Pages/LukoilAndStatoilSignsWestQurnaContract.aspx Equinor] {{Webarchive|url=https://web.archive.org/web/20120125083852/http://www.statoil.com/en/NewsAndMedia/News/2010/Pages/LukoilAndStatoilSignsWestQurnaContract.aspx |date=25 January 2012 }}
|-
| [[Badra, Iraq|Badra]]
| [[Gazprom]]
| Russia
| State
| 30%
| 0.051
| 5.5
| 0.102
|[https://web.archive.org/web/20120125161810/http://www.businessweek.com/ap/financialnews/D9DGMVR00.htm Business Week]
|-
|
| [[Petronas]]
| Malaysia
| State
| 15%
| 0.0255
| 5.5
| 0.051
| [http://www.upstreamonline.com/live/article204640.ece Upstream] {{Webarchive|url=https://web.archive.org/web/20111007124602/http://www.upstreamonline.com/live/article204640.ece |date=7 October 2011 }}
|-
|
| [[KOGAS]]
| Korea
| State
| 23%
| 0.03825
| 5.5
| 0.077
| [http://www.upstreamonline.com/live/article204637.ece Upstream] {{Webarchive|url=https://web.archive.org/web/20111007122955/http://www.upstreamonline.com/live/article204637.ece |date=7 October 2011 }}
|-
|
| [[TPAO]]
| Turkey
| State
| 8%
| 0.01275
| 5.5
| 0.026
|
|-
| [[West Qurna Field]] Phase 1
| [[Exxon]]
| US
| Public
| 60%
| 1.2276
| 1.9
| 0.851
| [http://www.businessweek.com/ap/financialnews/D9DENUP80.htm Business Week]{{dead link|date=January 2025|bot=medic}}{{cbignore|bot=medic}}
|-
|
| [[Royal Dutch Shell|Shell]]
| United Kingdom / Netherlands {{NoteTag|From 2005 to 2022, Shell had its headquarters in The Hague and its registered office in London. In January 2022, the company moved its headquarters to London.}}
| Public
| 15%
| 0.3069
| 1.9
| 0.213
| [http://royaldutchshellplc.com/2010/01/25/exxon-shell-sign-final-deal-for-iraqs-west-qurna-1-oil-field/ Alfred Donovan's blog] {{Webarchive|url=https://web.archive.org/web/20120229032449/http://royaldutchshellplc.com/2010/01/25/exxon-shell-sign-final-deal-for-iraqs-west-qurna-1-oil-field/ |date=29 February 2012 }} ([[royaldutchshellplc.com]])
|}

''Notes:''

# ''Field shares are as a % of the total. The Iraqi state retains a 25% share in all fields for which service contracts have been awarded.''
# ''Production increase share is the millions of bbls per day that will attract the service fee for the company.''
# ''Gross revenue at plateau is the total payment each company will receive upon reaching their declared target plateau production rate (in between 5 and 8 years, depending on the field), before deduction of any operating costs, in addition to recovery of all development costs as billions of US dollars per annum. The total gross revenue for all companies, after recovery of capital costs, is at plateau production of an additional 9.4 mb/d, 4.34 bn US per annum, at a $70 bbl oil price. The 2010 Iraq govt budget is $60 billion. $300 billion is approximately $10,000 per annum for each Iraqi citizen.''

In summary the shares by region in the increased production are:

{| class="wikitable"
|-
! Region
! Production<br />Share mb/d
! % of<br />total
|-
| Iraq
| 1.462
| 25%
|-
| Asia
| 1.9
| 20%
|-
| UK
| 1.81
| 19%
|-
| US
| 1.462
| 16%
|-
| Russia
| 1.402
| 14%
|-
| Europe (excl UK)
| 0.528
| 6%
|}