Note: The information contained in this report is the best available as of September 2000 and can change.
GENERAL
BACKGROUND
During the 1980s and 1990s, Iraq experienced two major
wars (Iran-Iraq and the Kuwait war), as well as a decade of economic sanctions.
As a result, the country's economy, infrastructure, and society are in extremely
bad shape. Iraq's Gross Domestic Product (GDP) has fallen sharply since before
the Iraqi invasion of Kuwait, with per-capita income (around $653) and living
standards far below pre-war levels. On the other hand, with oil production and
prices up substantially, Iraq's real GDP growth in 2000 is estimated at 15%
(with 19% real growth expected in 2001). Inflation currently is estimated at
around 120% (expected to decline to 80% in 2001), with unemployment (and
underemployment) high as well. Iraq's merchandise trade surplus is over $5
billion, although much of this is under United Nations (UN) control. Iraq has a
heavy debt burden, possibly as high as $130 billion if debts to Gulf states and
Russia are included. Iraq also has no meaningful taxation system, and bribery is
widespread.
Iraq reportedly has established a capital fund, in part to help shore up the
value of its currency, the dinar, by encouraging locally-financed projects. As
of June 2000, the dinar had slipped from around 900 dinars per U.S. dollar at
the beginning of 2000, to around 2,000 dinars per U.S. dollar as of early
September 2000. Local production in Iraq has slipped badly under sanctions, and
the country is forced to import almost everything it needs.
In late August 2000, a spokesperson for the UN Monitoring, Verification, and
Inspection Commission (UNMOVIC) said that it was ready to send a new arms
inspection team into Iraq. UN arms inspectors have been absent from Iraq since
December 1998, just prior to U.S.-British airstrikes. On August 24, 2000, Iraq's
Deputy Prime Minister, Tariq Aziz, said that "Iraq will not cooperate" with
UNMOVIC, which the United Nations created in December 1999 to replace the former
UN Special Commission (UNSCOM) on Iraq. UNMOVIC is headed by Hans Blix, a
Swedish diplomat and arms control expert. Under the UN resolution creating
UNMOVIC, UN economic sanctions could be lifted if Iraq fulfills various
conditions, including cooperation with UNMOVIC.
Also in late August 2000, the UN Security Council was deadlocked over a
Kuwait Petroleum Corporation (KPC) request for $21.6 billion in reparations as
compensation for lost oil and gas sales resulting from Iraq's invasion of Kuwait
and subsequent Iraqi sabotage of the wells. In June 2000, the UN's compensation
commission recommended that KPC be awarded $15.9 billion, but France and Russia
objected, and no award was made. Over the years, the UN compensation commission
has paid out more than $8 billion in claims, mainly to individuals or small
businesses hurt by Iraq's invasion of Kuwait. With Iraqi oil revenues now rising
into the tens of billions of dollars annually, however, Iraq (with backing by
Russia and France) now is increasing resistance to further large-scale
reparations. Russia has proposed reducing -- from 30% to 20% -- the proportion
of proceeds from the "oil-for-food" program earmarked for reparations.
In late August 2000, Venezuela's President Hugo Chavez met with Saddam
Hussein, a move that was strongly condemned by the United States. Earlier in the
month, Iraq celebrated the twelfth anniversary of the end of its war with Iran
and marked the tenth anniversary of its invasion of Kuwait (August 2, 1990).
OIL In September 1999, more than 50 foreign companies attended an oil and gas
technology exhibition in Baghdad, the first such gathering in 10 years. Most of
the firms were from the Canada, France, Italy, and the United Kingdom. No U.S.
firms attended, although a high-level Iraqi oil official has stated that Iraq is
ready to deal with U.S. oil companies. To help attract foreign investment to the country's energy sector, Iraq's oil
ministry recently introduced amendments to existing development and production
contracts (DPCs). Among other things, the duration of DPCs has been reduced from
23 to 12 years. In addition, Iraq has added a clause referring to "an explicit
commitment to achieve target production within a set period." Production Exports For the first six months of 2000, Iraq averaged crude oil production of
around 2.54 MMBD, and net oil exports of around 2.0 MMBD. Besides the
70,000-90,000 bbl/d of this going to Jordan (authorized by the United Nations)
and the 450,000-500,000 bbl/d or so consumed domestically, the rest was exported
either through the Iraq-Turkey pipeline or the Persian Gulf port of Mina
al-Bakr. Although U.N. Resolution 986 mandates that at least half of the
"oil-for-food" exports must transit through Turkey, it appears that in recent
months more Iraqi oil has been exported via Mina al-Bakr. Iraqi oil commonly is
sold initially to Russian firms, with other large purchasers including French
and Chinese companies. Oil is then resold to a variety of oil companies,
including about 700,000 bbl/d to U.S.-based companies. In March 2000, U.N. Security Council agreed to double the spending cap for
oil sector spare parts and equipment (under Resolution 1175 of June 20, 1998),
allowing Iraq to spend up to $600 million every 6 months repairing oil
facilities. U.N. Secretary General Kofi Annan had warned of a possible "major
breakdown" in Iraq's oil industry if spare parts and equipment were not
forthcoming. In August 2000, a senior Iraqi oil official stated that delays by
the United Nations in approving contracts to upgrade Iraq's oil sector were
threatening production levels. The United States has said that the $300 million
should be used only for short-term improvements to the Iraqi oil industry, and
not to make long-term repairs. Iraq claimed in August 2000 that 508 contracts
were on hold or pending approval by the United Nations. Of this total, 440 were
"held" by the United States, according to Iraq's oil ministry. In addition to U.N.-sanctioned oil exports to Jordan, there have been
periodic reports that Iraq has smuggled up to 100,000 bbl/d of crude oil and
products via a number of routes. These include: to Turkey, Jordan, and Syria via
truck, to Iran (and onward to Pakistan and India) along the Gulf coast and via
Qais Island, and to Dubai with the use of small tankers sailing from Umm Qasr.
Press reports also have estimated that these illegal shipments may have provided
Iraq with as much as $25-$40 million per month in revenues. In April 2000, the
U.S. Navy stopped a Russian tanker, the Akademik Pustovoit, which it suspected
might be smuggling Iraqi oil. The United Nations later determined that around
20% of the vessel's gasoil cargo (which Shell said it owned) was of Iraqi
origin. Oil Field Development, War, and Current Status The Kirkuk field, with over 10 billion barrels in remaining proven oil
reserves, forms the basis for northern Iraqi oil production. Jambur, Bai Hassan,
and Khabbaz are the only other currently-producing oil fields in northern Iraq.
An estimated 60% of Northern Oil Company's (NOC) facilities in northern and
central Iraq were damaged during the Gulf War. In 2000, production at Kirkuk was
estimated at around 900,000 bbl/d, with output from all northern fields around
1.3 MMBD (southern fields -- mainly North and South Rumaila -- are producing
around 1.8 MMBD). In early December 1999, Russian energy company Zarubezhneft
said that it was drilling multiple wells in Iraq's Kirkuk oil field, and that
this did not violate U.N. sanctions (Russian officials have denied that any work
was being done). Zarubezhneft hopes to boost Kirkuk production capacity from its
current 900,000 bbl/d to around 1.1 MMBD. Zarubezhneft also has a contract to
drill approximately 100 wells in the North Rumaila field. Other major Iraqi oil fields include the 11-billion barrel East Baghdad
field, which came online in April 1989. This centrally-located field currently
produces 50,000 bbl/d of heavy, 23o API oil as well as 30 million
cubic feet per day (Mmcf/d) of associated natural gas. Also, the Saddam field
contains 3 billion barrels of oil and 5 trillion cubic feet (Tcf) of associated
gas. Iraq is seeking foreign assistance for a second-phase Saddam development,
which would raise oil production capacity from to 50,000 bbl/d, as well as 300
Mmcf/d of gas. The Post-U.N. Sanctions Development Plan Russia, which is owed several billions of dollars by Iraq for past arms
deliveries, has a $3.5-billion, 23-year deal with Iraq to rehabilitate Iraqi
oilfields, particularly the 15-billion-barrel West Qurna field (located west of
Basra near the Rumaila field). Since a deal was signed in March 1997, Russia's
Lukoil (the operator, heading a Russian consortium plus an Iraqi company to be
selected by the Iraqi government) has prepared a plan to install equipment with
capacity to produce 100,000 bbl/d from West Qurna's Mishrif formation.
Meanwhile, in August 2000, Iraqi engineers reportedly completed work on two
degassing stations at West Qurna, with two more planned for 2001, potentially
raising production at the field (one of the world's largest) to around 400,000
bbl/d. West Qurna is believed to have potential production capacity of up to 1
MMBD. In October 1999, Russian officials reportedly said that Iraq had accepted
a Russian request to delay work on West Qurna given the continuation of U.N.
sanctions. This followed an Iraqi warning that Lukoil could lose its contract
(and possibly be replaced by another Russian company) at West Qurna if it did
not begin work immediately (Lukoil has been restrained from doing so by U.N.
sanctions). In late August 2000, a joint Russian-Belarus oil company, Slavneft, was
reported to be in talks with Iraqi officials on the billion-barrel, Suba-Luhais
field in southern Iraq. Full development of Suba-Luhais could result in
production of 100,000 bbl/d at a cost of $300 million over three years. Besides West Qurna, PSCs for the three other large southern oil fields are in
various stages of negotiation. The largest of the fields is Majnoon, with
reserves of 10-30 billion barrels of 28o-35o API oil, and
located 30 miles north of Basrah on the Iranian border. French company
TotalFinaElf reportedly has negotiated with Iraq on development rights for
Majnoon. Initial output at Majnoon is expected to be 300,000 bbl/d, with later
development yielding 600,000 bbl/d or more. Ultimate production potential is
estimated at up to 2 MMBD. As of September 1999, Elf and Total reportedly needed
only "the stroke of the pen" to complete deals on Majnoon and the 6-billion
barrel Nahr Umar field. However, in December 1999, Iraq threatened that the two
companies would lose their "preferential treatment" if France did not provide
sufficient support to Iraq on the U.N. Security Council. TotalFinaElf apparently has all but agreed with Iraq on development of the
Nahr Umar field. Initial output from Nahr Umar is expected to be around 440,000
bbl/d of 42o API crude, but may reach 500,000 bbl/d with more
extensive development. The 5-billion barrel Halfaya project is the final large
field development in southern Iraq. A variety of companies reportedly have shown
interest in the field, which ultimately could yield 200,000-300,000 bbl/d in
output. Smaller fields with under 2 billion barrels in reserves also are receiving
interest from foreign oil companies. These fields include Nasiriya, Khormala,
Hamrin, and Gharraf. Italy's Agip and Spain's Repsol appear to be strong
possibilities to develop Nasiriya. In addition to the 25 new field projects, Iraq plans to offer foreign oil
companies service contracts to apply technology to 8 already-producing fields.
Meanwhile, Iraq has authorized "risk contracts" to promote exploration in the
nine remote Western Desert blocs. Iraq has identified at least 110 prospects
from previous seismic work in this region near the Jordanian and Saudi borders.
Oil Export Pipelines/Terminals On August 20, 1998, Iraq and Syria (which reopened their border in June 1997
-- after a 17-year closure -- for trade and official visits) signed a memorandum
of understanding for the possible reopening of the Banias oil pipeline from
Iraq's northern Kirkuk oil fields to Syria's Mediterranean port of Banias (and
Tripoli, Lebanon). In October 1999, Iraqi experts reportedly assessed the
pipeline as capable of initial oil pumping capacity of 300,000 bbl/d (out of
potential capacity of 400,000 bbl/d). Iraq will need U.N. permission to export
any oil via Syria. As of August 2000, work reportedly was still underway on
repairing the Syria-Iraq line. In order to optimize export capabilities, Iraq constructed a reversible,
1.4-MMBD "Strategic Pipeline" in 1975. This pipeline consists of two parallel
700,000 bbl/d lines. The system allows for export of northern Kirkuk crude from
the Persian Gulf and for southern Rumaila crudes to be shipped through Turkey.
During the Gulf War, the Strategic Pipeline was disabled after the K-3 pumping
station at Haditha as well as four additional southern pumping stations were
destroyed. In the Persian Gulf, Iraq has three tanker terminals: at Mina al-Bakr, Khor
al-Amaya, and Khor al-Zubair (which mainly handles dry goods). Iraq also has
additional dry goods ports at Basrah and at Umm Qasr, which is being outfitted
to accommodate crude tankers. Mina al-Bakr is Iraq's largest oil terminal, with
four 400,000-bbl/d capacity berths capable of handling very large crude carriers
(VLCCs). Gulf War damage to Mina al-Bakr appears to have been repaired in large
part and the terminal currently can handle up to 1.3-1.4 MMBD. A full return to
Mina al-Bakr's nameplate capacity apparently would require extensive
infrastructure repairs. Mina al-Bakr also is constrained by a shortage of
separation and storage facilities, most of which were destroyed in the Gulf
War. Iraq's Khor al-Amaya terminal was virtually destroyed during the Iran-Iraq
War, and has been out of commission since then. As of July 2000, reports
indicated that Iraq was repairing two berths at Khor al-Amaya, with a goal of
reaching export capacity of 700,000 bbl/d by the end of 2000. Upon full
completion of repairs, Iraq projects Khor al-Amaya's capacity will rise to 1.2
MMBD, and will help prevent delays at Mina al-Bakr while repairs are conducted
there. Iraq will need UN Security Council approval to export from Khor al-Amaya,
since it is not part of the approved export outlet of Mina al-Bakr. Refining Iraq reportedly is building mobile refineries that could eventually add as
much as 100,000 bbl/d to the country's refining capacity. According to Iraqi oil
ministry officials, one of the ten, 10,000-bbl/d refineries, was already online
as of July, with another soon to follow. NATURAL GAS Main sources of associated gas are the Kirkuk, Ain Zalah, Butma, and Bai
Hassan oil fields in northern Iraq, as well as the North and South Rumaila and
Zubair fields in the south. The Southern Area Gas Project was completed in 1985,
but was not brought online until February 1990. It has nine gathering stations
and a larger processing capacity of 1.5 billion cubic feet per day. Gas gathered
from the North and South Rumaila and Zubair fields is carried via pipeline to a
575-Mmcf/d natural gas liquids (NGL) fractionation plant in Zubair and a
100-Mmcf/d processing plant in Basrah. At Khor al-Zubair, a 17.5 million cubic
foot LPG storage tank farm and loading terminals were added to the southern gas
system in 1990. Iraq's only non-associated gas production is from the al-Anfal field (200
Mmcf/d of output) in northern Iraq. Al-Anfal production is piped to the Jambur
gas processing station near the Kirkuk field, which is 20 miles away. Al-Anfal's
gas resources are estimated at 4.5 Tcf, of which 1.8 Tcf is proven. ELECTRIC POWER Sources for this report include: BBC Summary of World Broadcasts; CIA
World Factbook 1999; Dow Jones News Wire service; Economist Intelligence Unit
ViewsWire; Oil & Gas Journal; Oil Daily; Petroleum Intelligence Weekly;
Platt's Oilgram News; Reuters News Wire; U.S. Energy Information Administration;
U.S. Department of State; WEFA Middle East Economic Outlook. ECONOMIC OVERVIEW ENERGY OVERVIEW ENVIRONMENTAL OVERVIEW * The total energy consumption statistic includes petroleum, dry natural gas,
coal, net hydro, nuclear, geothermal, solar and wind electric power. The
renewable energy consumption statistic is based on International Energy Agency
(IEA) data and includes hydropower, solar, wind, tide, geothermal, solid biomass
and animal products, biomass gas and liquids, industrial and municipal wastes.
Sectoral shares of energy consumption and carbon emissions are also based on IEA
data. Links to other U.S. government sites: UN Office of the Iraq
Program
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Iraq contains 112
billion barrels of proven oil reserves, the second largest in the world (behind
Saudi Arabia) along with roughly 215 billion barrels of probable and possible
resources. Iraq's true resource potential may be understated, as deeper
oil-bearing formations located mainly in the Western Desert region could yield
additional resources, but have not been explored. Iraqi oil reserves vary widely
in quality, with API gravities in the 24o to 42o range.
Iraq's main export crudes come from the country's two largest active fields:
Rumaila and Kirkuk. The southern Rumaila field produces three streams: Basrah
Regular (34o API, 2.1% sulfur); Basrah Medium (30o API,
2.6% sulfur); and Basrah Heavy (22o-24o API, 3.4% sulfur).
The northern Kirkuk field produces 37o API, 2% sulfur crude. An
additional export crude, known as "Fao Blend," is heavier and more sour, with a
27o API and 2.9% sulfur.
Following Iraq's invasion of Kuwait and the embargo on
Iraqi oil exports, Iraqi oil production fell to around 300,000 bbl/d (from 3.5
MMBD in July 1990). Through the first half of 2000, Iraqi crude oil production
averaged 2.5 MMBD (in August 2000, production reached approximately 3 MMBD).
About 450,000-500,000 bbl/d of Iraq's oil output is consumed domestically, with
another 70,000-90,000 bbl/d trucked to Jordan under a special UN exemption,
leaving around 2 MMBD for export. Iraqi officials had hoped to increase the
country's oil production to 3.4 MMBD by the end of 2000, but now appear to be
acknowledging that this is probably not realistic, given technical problems with
Iraqi oil fields, export terminals, pipelines, and other oil infrastructure.
Industry experts generally assess Iraq's sustainable production capacity at no
higher than 2.9-3.0 MMBD, and more likely closer to 2.6 MMBD (with net exports
of around 2.0 MMBD). Iraq's battle with "water cut" is a major challenge,
especially in the south. In October 1999, oil consulting firm Saybolt
International reported that Iraq has been able to increase its oil production
through use of short-term techniques not generally considered acceptable in the
oil industry.
UN Resolution 986 (April 1995) allows Iraq to sell
specified dollar amounts of crude oil over six-month periods, in part for the
purchase of humanitarian supplies ("oil for food") for distribution in Iraq
under UN supervision. The current six-month phase runs through December 5, 2000.
Remaining proceeds are used to pay compensation for Gulf War victims, pipeline
transit fees for Turkey, and funding for U.N. weapons monitoring activities. In
December 1999, with Iraq steadily increasing its oil export revenues, the
Security Council voted to remove any limits on the amount of oil Iraq could
export.
Iraq's southern oil
industry was decimated in the Gulf War, with capacity falling to 75,000 bbl/d in
mid-1991. The largest producing oil field in this region is Rumaila. The war
resulted in destruction of gathering centers and compression/degassing stations
at Rumaila, storage facilities, the 1.6-MMBD (pre-war capacity) Mina al-Bakr
export terminal, and pumping stations along the 1.4-MMBD (pre-war capacity)
Iraqi Strategic Pipeline. Seven other sizable fields remain damaged or partially
mothballed. These include Zubair, Luhais, Suba, Buzurgan, Abu Ghirab, and
Fauqi.
As of early September
2000, Iraq reportedly had signed several multi-billion dollar deals with foreign
oil companies, mainly from China, France, and Russia (U.S., Canadian, and
Vietnamese firms also reportedly have held discussions). Iraq reportedly has
become increasingly frustrated, however, at the failure of these companies
actually to begin work on the ground, and has threatened to no longer sign deals
unless firms agreed to do so without delay. Iraqi upstream oil contracts
generally require that companies start work immediately, but UN sanctions
overwhelmingly have dissuaded companies from doing so.
The 600-mile, 40-inch Kirkuk-Ceyhan
pipeline is Iraq's largest operable crude export pipeline. This Iraq-Turkey link
consists has a fully-operational capacity of 1.1 MMBD, but can handle only
around 900,000 bbl/d (1-1.1 MMBD at most) at present. A second, parallel,
46-inch line has an optimal capacity of 500,000 bbl/d and was designed to carry
Basrah Regular exports, but is currently inoperable. Combined, the two parallel
lines have an optimal capacity of 1.5-1.6 MMBD. Expanding capacity to this
level, however, will depend on Iraq's ability to rehabilitate the IT-1 and IT-1A
pumping stations, as well as the Zakho metering station near the Iraq-Turkey
border and other ongoing pipeline repairs (including so-called "intelligent
pigging") on the 46-inch line. This work appears to be well behind schedule, and
reportedly will not be completed anytime soon. The 40-inch line has additional
pumping stations and fewer bottlenecks than the 46-inch line, which allows for
greater throughput than that of the larger line. Currently, Iraq is bypassing
the crucial but damaged IT-2 pumping station, located about 93 miles south of
the Turkish border, making it more difficult to reach the 1.6 MMBD dual-line
capacity. To make IT-2 operational, Iraqi officials have said that they need
controls and associated valves costing around $50 million. The IT-1 pumping
station near Kirkuk received lighter damage and is presently functional.
Iraq's current refining capacity is believed to be around
347,500 bbl/d (although the Iraqis claim 700,000 bbl/d), compared to a pre-Gulf
War, nameplate capacity of 700,000 bbl/d. Iraq has 10 refineries and topping
units. The largest are the 150,000-bbl/d Baiji North, 100,000-bbl/d Daura, and
70,000-bbl/d Basra plants. During the Gulf War, both Baiji in northern Iraq as
well as the refineries at Basrah, Daura, and Nasiriyah were severely damaged.
Today, a lack of light-end products, low quality gasoline, and rising pollution
levels because of a lack of water treatment facilities are some problems faced
by Iraq's downstream sector. Post-sanction plans include attracting foreign
investment to perform refinery upgrades and building a new $1-billion,
290,000-bbl/d "Central" refinery near Babylon.
Iraq contains
110 trillion cubic feet (Tcf) of proven natural gas reserves, along with roughly
150 Tcf in probable reserves. About 70% of Iraq's gas reserves are associated
gas (gas produced in conjunction with oil), with the rest made up of
non-associated gas (20%) and dome gas (10%). Until 1990, all of Iraq's natural
gas production was from associated fields. In 1998, Iraq produced 104 billion
cubic feet (Bcf), down drastically from peak output levels of 700 Bcf in 1979.
Within two years after the lifting of U.N. sanctions, Iraq hopes to produce 550
Bcf of gas. Within a decade, Iraq aims to be producing about 4.2 Tcf of gas
annually. Since most of Iraq's gas is associate with oil, progress on increasing
the country's oil output will directly affect the gas sector as well. Gas is
both produced with oil and also used for reinjection for enhanced oil recovery
efforts. In October 1997, Iraq invited international partners to invest in
natural gas projects worth $4.2 billion. Generally, Iraq's policy is to award
gas and oil concessions to companies from countries supporting the easing or
lifting of U.N. sanctions (i.e., France, China, Russia).
Around 90%
of Iraq's national power grid was destroyed in the Gulf War. Existing generating
capacity of 9,000 megawatts (MW) in December 1990 was reduced to only 340 MW by
March 1991. Roughly 85% of Iraq's 20 power stations were damaged or destroyed in
the Gulf War. In early 1991, transmission and distribution infrastructure also
was destroyed, including the 10 substations serving Baghdad and about 30% of the
country's 400-kilovolt (kV) transmission network. In early 1992, Iraq stated
that it had restarted 75% of the national grid, including the 1,320-MW Baiji and
Mosul thermal plants as well as the Saddam Dam. In 1998, Iraq's maximum
available electric generation capacity was estimated (by Iraq) at around 4,000
MW, with a report in November 1999 indicating that this figure may have
increased even further, to 6,000 MW. Iraq reportedly has signed contracts for
renovating two generation units at the Harithah power plant, and another to
rebuild the Yusufiyah plant, which stopped operating in 1990. Iraq's Electricity
Authority reportedly also has signed several other contracts with Chinese,
Swiss, French, and Russian companies, to build 3,000 MW of additional power
generating capacity. These contracts require UN approval.
Head of Government:
Saddam Hussein al-Takriti
Deputy Prime Minister: Tariq 'Aziz
Independence: October 3, 1932
Population (2000E): 23.6
million
Location/Size: Middle East/168,709 square miles, slightly
more than twice the size of Idaho.
Major Cities: Baghdad (capital),
Basra, Mosul, Karbala, Kirkuk
Languages: Arabic, Kurdish
Ethnic Groups: Arab 75-80%, Kurdish 15-20%, Turkmen, Assyrian, or
other 5%
Religions: 97% Muslim (Shi'a 60-65%, Sunni 32-37%),
Christian or other (3%)
Defense (8/98E): Army (375,000); Air Force
(35,000); Navy (2,000). Iraq is believed to have 2,000 battle tanks and 300-350
aircraft (of which as few as 100 may be serviceable)
Currency: Iraqi Dinar (ID)
Unofficial Exchange Rate (9/7/00E): US$1 = ID1,970
Gross
Domestic Product (at market exchange rates) (2000E): $15.4 billion (around
one-third of 1989's economic output)
Real GDP Growth Rate (2000E):
15% (2001F): 18%
Inflation Rate (consumer prices) (2000E):
120% (2001F): 80%
Major Export Products (2000): Crude oil and
oil products (regulated by the United Nations)
Major Import Products
(2000): Food, medicine, consumer goods (regulated by the United Nations)
Merchandise Exports (2000E): $16.3 billion
Merchandise Imports
(2000E): $11.0 billion
Merchandise Trade Balance (2000E): $5.3
billion
Current Account Balance (2000E): $50 million
Oil
Export Revenues/Total Export Revenues (pre-1990): 95%
Total External
Debt (2000E): $130 billion
Minister of Oil: Lt. Gen. 'Amir
Muhammad Rashid
Proven Oil Reserves (1/1/00E): 112.5 billion barrels
(around 75 billion barrels of which has not yet been developed; potential
reserves are as high as 200 billion barrels)
Oil Production (January-June
2000E): 2.57 million barrels per day (MMBD), of which 2.54 MMBD is crude oil
Oil Production (April-June 2000E): 2.78 MMBD (of which 2.76 million
bbl/d is crude oil)
Oil Production Capacity, Maximum Sustainable
(9/00E): 2.9-3.0 MMBD
Projected Oil Production Capacity: Possibly
3.2 MMBD by end of 2000; plans for 6 MMBD within 4-7 years after sanctions are
lifted
Oil Export Routes (8/00E): 1 MMBD through the Kirkuk-Ceyhan
pipeline; 1.4 MMBD through the port of Mina al-Bakr; 70,000-90,000 bbl/d via
truck to Jordan
Oil Consumption (2000E): 450,000-500,000 barrels per
day (bbl/d)
Net Oil Exports (January-June 2000E): 2.1 MMBD (including
80,000-90,000 bbl/d to Jordan)
U.S. Oil Imports from Iraq (January-June
2000E): 557,000 bbl/d (down from 725,000 bbl/d in 1999)
Crude Oil
Refining Capacity (1/1/00): 347,500 bbl/d (according to Oil and Gas
Journal)
Natural Gas Reserves (1/1/00E): 109.8 trillion cubic
feet (Tcf)
Natural Gas Production (1998E): 104 billion cubic feet
(Bcf)
Natural Gas Consumption (1998E): 104 Bcf
Electricity
Generation Capacity (1999E): 6 gigawatts
Electricity Production
(1998E): 28.4 billion kilowatthours
Total Energy Consumption (1998E):
1.1 quadrillion Btu* (0.3% of world total energy consumption)
Energy-Related Carbon Emissions (1998E): 19.4 million metric tons of
carbon (0.3% of world carbon emissions)
Per Capita Energy Consumption
(1998E): 48.7 million Btu (vs U.S. value of 350.7 million Btu)
Per
Capita Carbon Emissions (1998E): 0.9 metric tons of carbon (vs U.S. value of
5.5 metric tons of carbon)
Energy Intensity (1998E): 34,800 Btu/ $1990
(vs U.S. value of 13,400 Btu/ $1990)**
Carbon Intensity (1998E): 0.63
metric tons of carbon/thousand $1990 (vs U.S. value of 0.21 metric tons/thousand
$1990)**
Sectoral Share of Energy Consumption (1997E): Transportation
(57.4%), Industrial (33.5%), Residential (9.1%)
Sectoral Share of Carbon
Emissions (1997E): Transportation (61.5%), Industrial (28.6%), Residential
(9.9%)
Fuel Share of Energy Consumption (1998E): Oil (89.1%), Natural
Gas (10.3%)
Fuel Share of Carbon Emissions (1998E): Oil (89.9%),
Natural Gas (10.2%)
Renewable Energy Consumption (1997E): 7 trillion
Btu*
Number of People per Motor Vehicle (1997): 19.6 (vs U.S. value
of 1.3)
Status in Climate Change Negotiations: Iraq is not a
signatory to the United Nations Framework Convention on Climate Change or to the
Kyoto Protocol.
Major Environmental Issues: Government water control
projects have drained most of the inhabited marsh areas east of An Nasiriyah by
drying up or diverting the feeder streams and rivers; a once sizable population
of Shi'a Muslims, who have inhabited these areas for thousands of years, has
been displaced; furthermore, the destruction of the natural habitat poses
serious threats to the area's wildlife populations; inadequate supplies of
potable water; development of Tigris-Euphrates Rivers system contingent upon
agreements with upstream riparian Turkey; air and water pollution; soil
degradation (salination) and erosion; desertification
Major International
Environmental Agreements: A party to the Law of the Sea and the Nuclear Test
Ban. Has signed, but not ratified, Environmental Modification
**GDP based on EIA International Energy Annual 1998
OIL
AND GAS INDUSTRY
Major Companies: The Oil Ministry oversees
the nationalized oil industry through the Iraq National Oil Company
(INOC). Autonomous companies under INOC include the State Company for Oil
Projects (SCOP) - design and engineering of upstream and downstream
projects; Oil Exploration Company (OEC) - exploration; Northern Oil
Company (NOC) and Southern Oil Company (SOC) - upstream activities in
northern/central and southern Iraq, respectively; State Organization for Oil
Marketing (SOMO) - crude oil sales and OPEC relations; Iraqi Oil Tankers
Company (IOTC); and various departments within the Ministry of Oil which run
Iraq's internal pipeline systems, distribute oil products, operate downstream
natural gas/LPG projects and gas bottling plants.
Major Oil Fields
(proven/probable reserves - billion barrels, 1998E): Majnoon (20), West
Qurna (15), East Baghdad (11+), Kirkuk (10+), Rumaila (10+), Nahr Umar (6+),
Halfaya (5), Zubair (4), Bai Hassan (2), Buzurgan (2), Khabbaz (2), Abu Ghirab
(1.5), Nasiriya (2), Khormala (1.5)
Oil Refineries (crude refining
capacity bbl/d, 1999E): Baiji North (150,000), Daura (100,000), Basra
(70,000), Khanakin (12,000), Haditha (7,000), Muftiah (4,500), Qayarah (2,000)
(Note: Iraq reportedly is constructing several 10,000-bbl/d mobil refineries).
Major Ports: Mina al-Bakr, Khor al-Maya, Khor al- Zubair, Umm Qasr
Major Pipelines (current capacity): Kirkuk-Ceyhan (Dortyol)
Pipeline - 0.9 MMBD; Iraq-Saudi Arabia Pipeline (IPSA1, 2) - 1.65
MMBD (closed by Saudi Arabia in 1990); Banias Pipeline - 0.3 MMBD (closed
by Syria in 1983); Iraq Strategic Pipeline - less than 1.4 MMBD
(reversible, internal transportation only)
For more information on Iraq, see these other sources on the EIA web site:
EIA - Country
Information on Iraq
2000 CIA World
Factbook - Iraq
U.S. Office of
Foreign Assests Control (for information on Iraqi Sanctions)
U.S. State Department's Consular
Information Sheet - Iraq
Library of Congress -- Iraq
Country Study
The following links are provided solely as a service
to our customers, and therefore should not be construed as advocating or
reflecting any position of the Energy Information Administration (EIA) or the
United States Government. In addition, EIA does not guarantee the content or
accuracy of any information presented in linked sites.
Oil-for-Food
Program, Basic Figures
UN Security Council
Resolution 1153 on Iraq
UN Security Council
Resolution 986 on Iraq
Permanent
Mission of Iraq to the United Nations
MENA
Petroleum Bulletin
University of Texas at
Austin -- Iraq Page
Harvard
University -- Iraq Page
University
of Pennsylvania -- Middle East Center
Planet Arabia.com
AME Info Middle East Business Information
Lowell Feld
lfeld@eia.doe.gov
Phone:
(202)586-9502
Fax: (202)586-9753
URL:
http://www.eia.doe.gov/emeu/cabs/iraqfull.html