Why is Iraq rich in oil?

Oil reserves in Iraq are considered the world’s fifth-largest proven oil reserves, with 140 billion barrels. The sources for this oil is primarily located in the Shiite Muslims-majority and Arab Sunni Muslims-dominated areas on the other hand are comparatively lacking.

Does Iraq depend on oil?

Earlier in the 20th century, Iraq was an agriculture-dependent new country with only a fledgling oil sector. Zooming forward to 2020, Iraq is now highly dependent on oil as its principal income, with the government the largest employer and the agriculture sector in crisis.

Who owns the oil in Iraq now?

Iraq’s natural resources are 100% state-owned. The state-owned enterprise SOMO sells oil and gas on behalf of the state.

What percentage of oil comes from Iraq?

Iraq holds 143,069,000,000 barrels of proven oil reserves as of 2016, ranking 5th in the world and accounting for about 8.7% of the world’s total oil reserves of 1,650,585,140,000 barrels. Iraq has proven reserves equivalent to 457.4 times its annual consumption.

Does Iraq have more oil than Saudi Arabia?

Saudi Arabia is the world’s largest oil producer and accounts for roughly 15% of global output. Iraq has increased production since the end of the Iraq War and is now the second-largest producer in the Middle East. Iran is one of the world’s largest oil producer, but output is below potential due to economic sanctions.

How much oil does Iraq sell?


Population (million inhabitants) 40.15
Proven crude oil reserves (million barrels) 145,019
Proven natural gas reserves (billion cu. m.) 3,714
Crude oil production (1,000 b/d) 3,996.6
Marketed production of natural gas (million cu. m.) 7,374.1

Who owns the oil wells in Iraq?

The Iraq Petroleum Company (IPC), known prior to 1929 as the Turkish Petroleum Company (TPC), is an oil company which, between 1925 and 1961, had a virtual monopoly on all oil exploration and production in Iraq….Iraq Petroleum Company.

Type Consortium
Areas served Iraq Middle Eastb
Owners BP Royal Dutch Shell ExxonMobil Total S.A. Partex

How much oil is there in Iraq?

Iraq has 112.5 billion barrels of proven oil reserves, or about 10 percent of the world’s known remaining oil–making it a distant second to Saudi Arabia, which possesses some 300 billion barrels, or one-quarter of the world’s known reserves.

Can Iraq meet its oil potential?

Despite a large reconstruction effort, the Iraqi oil industry has not been able to meet hydrocarbon production and export targets. The World Bank estimates that an additional $1 billion per year would need to be invested just to maintain current production.

Is Iraq a major oil producer?

Iraq’s Position as a Major Oil Producer. In a recent report published by Standard Chartered Bank, researchers state that Iraq has the potential to be the world’s largest crude exporter. Newly constructed oil fields and the ease of access to massive oil reserves have helped Iraq increase oil production in recent years.

Was oil the cause of the Iraq War?

Hinnebusch and Fawn assert that the Iraq war was caused by Iraqi oil and defiance towards America. Iraq was the only Arab nation with an educated enough population, sizable oil resources, and water supplies to maintain independent foreign and domestic policy without any aid.

Who is the Ministry of oil in Iraq?

The Ministry of Oil (Arabic: وزارة النفط‎) is the Iraqi government agency responsible for Iraqi petroleum. The Minister of Oil since 2016 is Jabbar Alluaibi.