Dr. Ali Merza, a member of one of many economic committees inside Iraq, has written a report called “Iraq’s National Energy Strategy: Oil & Gas Production, Diversification and Employment.” Dr. Merza has previously stated that higher oil revenues might motivate calls to revalue the Iraq dinar.
Prime Minister, Nuri Maliki, currently has a business and development strategy for the country in the works. As of right now, the Oil & Gas production is behind. It is currently at a steady 2.5 mbd with a goal to reach 3 mbd by the end of the year. Back in 2012, Iraq was at 3 mbd per day. It has dropped to a low due to lack of infrastructure and militants who are anti-government and dislike the central Baghdad government. The long term goal of Iraq’s oil industry is to reach 9.5 mbd by 2017. At the present time, Iraq cannot increase oil production due to the infrastructure. Iraq is also in dire need of more storage facilities. This is one of the reasons that prompted the Iraq government to recently sign the 1.3 billion dollar project for the Port of Faw.
The project in the Port of Faw will increase the oil exports to customers in India and Europe. The Iraq government is having difficulty getting foreign companies to invest in proposed Oil projects so they’re forced to dip into state funds.
There are other problems in the Iraq oil sector, the lack of electricity. The Iraq oil Minister has stated that $40 billion dollars per year is lost due to the lack of continuous electricity supply. Aside from the difficulties they are facing, Iraq is moving forth with oil production. Hopefully, they will meet their oil export goal by years end.
Dr. Ali Merza Report: PDF File – File .5 megs
Iraq’s National Energy Strategy: Oil & Gas Production, Diversification and Employment