Iraq Minister of Oil gives lecture on 'The Oil Policy and its Impact in Promoting the National Economy'

Mr. Abd Al-Mahdi said that Iraq is now globally the third oil producer, the fourth exporter and the third oil reserve with 130 billion barrels of oil as well as gas.

Mr. Adil Abd Al-Mahdi the minister of oil gave a lecture in the college of defense for the military studies and the lecture was entitled with "the oil policy and its impact in promoting the national economy".

   The lecture consisted of four parts including the oil & gas production and their role in the national production, in addition to the study of the oil geography in Iraq and its direct impact on the national security, as well as the regional significance of the oil & gas and the international significance of oil, as well as how the oil can improve the national economy, and the way to protect the national culture & the peoples duties in this sector.

   Mr. Abd Al-Mahdi said that the military & security forces has a big role in protecting the oil fields and the oil facilities & pipelines around the country from the terrorist gangs (ISIS) whom are trying to control over the oil fields in any way in order to maintain their battle. But the military & security forces stopped them through the big battles to regain the oil fields from their control such as Baiji field.

   Mr. Abd Al-Mahdi said that Iraq is now globally the third oil producer, the fourth exporter and the third oil reserve with 130 billion barrels of oil as well as gas. And the Iraqi production is about 1 billion barrels per year and it is believed that Iraq has twice the announced amount of reserves but have not been explored yet because of the wars. So that Iraq is supposed to be the last remaining oil producer in the world, which is a fact that everyone knows and it is a reason why the global companies invest in Iraq not for the profit but for the gas investment. 

   He said also that oil generates 35% of the world energy then coal then gas and these three power sources produces 83% of the world energy, 50% of it is generated by the oil & gas and Iraq has the both of them. He said that Iraq is globally the 11th gas reserve with 131 trillion standard cubic feet, 75% of it is associated gas with the oil upstreaming and the rest is from the free gas fields such as Akkaz, Mansuriya and Seeba. While Iraq can be the 5th or 6th gas reserve if it completes its explorations.

   Mr. Abd Al-Mahdi said that the Iraqi oil represents 7% of the national production but its effect on the budget of the country is 90%. And the Southern & middle areas are the main oil producers with 3.7 million barrels/ day.

   In relation to the regional oil significance... Mr. Abd Al-Mahdi said that Iraq is a strong competitor in the region. This issue effects positively on its relations with the nearby countries especially the countries whom have common oil fields with it or has mutual interests.

   Mr. Abd Al-Mahdi pointed out that the production costs in Iraq reaches 10$ for the single barrel, (5$ in Rumaila, for example). While there are some OPEC countries reaches 40 – 80 $ for the barrel such as the (SHALE OIL) fields. So we can conclude that Iraq is a cheap producer that can stand in the global market for a long time, which is a fact that all the global companies knows. And the existence of these companies in Iraq is politically positive for the benefit of Iraq which demands a military leader to protect its interests. He also stressed on the necessity of activating agriculture & industry to back up the national economy and avoid its depend on one source. 

 (Source: Iraq Ministry of Oil)

 

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