British newspaper: Iraq has enormous energy potential, but policies have prevented its exploitation.
Iraq has enormous energy potential, but policies have prevented its exploitationDecades of unrest have led to the neglect of Iraq’s vast energy potential, but renewed investment and strategic reforms could transform it into a major player in the region, according to a report published by the British newspaper Petroleum Economist on Saturday.
Despite being a founding member of OPEC, Iraq is the world’s largest untapped major hydrocarbon resource, largely due to its period of continuous turmoil. A war with Iran throughout the 1980s, followed by the invasion of Kuwait and international sanctions throughout the 1990s, and then the US invasion and regime change in 2003, Iraq has suffered decades of war, sanctions, and isolation from the international oil and gas industry in terms of capital, technology, and management.
He added, “Despite these challenges, Iraq has achieved significant progress in recent years, moving from producing a few million barrels of oil per day to nearly 5 million barrels per day today. This number is expected to double—and even more—if all goes as planned. There are still huge undeveloped fields and promising prospects yet to be explored.”
He continued, “Even under the most ambitious energy transition scenarios, oil and gas will play a prominent role for decades to come. Much of what the energy transition relies on is made from oil, whether it’s electric cars, wind turbines, or solar panels. Natural gas is also essential, as recognized at the Climate Summit and as an important transition fuel.
Replacing gas with less polluting fuels such as coal or, in the case of the Middle East, liquid fuels is the way to quickly reduce emissions and then enable the addition of renewable energy sources. Because renewable energy sources are intermittent, baseload must be stabilized before solar and wind power are added.”
The report noted that “even as we look forward to a potential transition away from fossil fuels, the fossil fuels available in the Middle East and Iraq, particularly hydrocarbons, will be among the last to be consumed on the market, given their low cost and being among the cleanest.”
Almaalomah.me