Although most of the production in northern Iraq was shut in or placed into storage after the pipeline stopped operating, the KRG fields increased production from nearly 120,000 b/d in April 2023 to around 200,000 b/d in August 2023.
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This has introduced a number of vulnerabilities to Iraq''s energy system. For example, payment issues last summer led to Iran cutting exports, significantly exacerbating electricity shortages
The world is at a crucial juncture in its quest for sustainable development and combatting climate change. As the negative impacts of fossil fuels become increasingly evident, there is a growing
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Solar energy has not been sufficiently utilized at present in Iraq. However, this energy source can play an important role in energy production in Iraq, as the global solar radiation ranging from 2000 kWh/m2 to a 2500 kWh/m2 annual
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There are a number of pathways available for the future of electricity supply in Iraq but the most affordable, reliable and sustainable path requires cutting network losses by half at least, strengthening regional interconnections,
Iraq’s total operating refining capacity is about 1.2 million b/d.27 The Iraqi government plans to reduce petroleum product imports by rehabilitating the refining sector and building new refineries, but the government has struggled in its efforts to attract the foreign investment needed in the downstream sector.
Iraq has always had challenges with crude quality. As far back as 2012, when former Oil Minister Thamir Ghadhban commissioned a major Integrated National Energy Strategy (INES) to review Iraq’s oil and gas sector, a key recommendation was that “production increases will require Iraq to formulate a new crude segregation strategy.”3
Ahmed Rasheed and Timour Azhari, Reuters, “Iraq approves record $153 billion budget including big public hiring,” June 11, 2023. International Monetary Fund, 2022 Article IV Consultation with Iraq, February 2023, Table 2, page 27. U.S. Energy Information Administration, OPEC Revenues Factsheet, June 2023.
However the capacity to capture and process this gas has not kept pace. The inability to utilise its gas riches means that the country's gas deficit has grown, and Iraq now relies on imports from Iran to meet increasing demand. This has introduced a number of vulnerabilities to Iraq’s energy system.
Despite the extraordinary challenges of war in recent years, Iraq has made impressive gains, nearly doubling the country’s oil production over the past decade. But the turmoil has also undermined the country’s ability to maintain and invest in its power infrastructure.
Iraq will also need to increase infrastructural flexibility. Iraq’s production profile is transitioning to a more complex mix of heavier Mishrif crude (increasing Basra Heavy supply) and lighter Yamama (helping Iraq increase its share of light crude exports).
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