• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 15 mins Despite pressure about Khashoggi's Murder: Saudi Arabia Reassures On Oil Supply, Says Will Meet Demand
  • 5 hours Dyson Will Build Its Electric Cars in Singapore
  • 18 mins Why I Think Natural Gas is the Logical Future of Energy
  • 4 hours China Opens Longest Mega-Bridge Linking Hong Kong to Mainland
  • 2 hours The Balkans Are Coming Apart at the Seams Again
  • 1 hour How Long Until We Have Working Nuclear Fusion Reactor?
  • 13 mins Can “Renewables” Dent the World’s need for Electricity?
  • 23 mins World to Install Over One Trillion Watts of Clean Energy by 2023
  • 7 hours Satellite Moons to Replace Streetlamps?!
  • 3 hours These are the world’s most competitive economies: US No. 1
  • 12 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 1 hour Iraq war and Possible Lies
  • 7 hours Aramco to Become Major Player in LNG?

Iraq Oil Revenue Not Enough For Sustainable Development

Iraq

Oil revenues still are not high enough to allow the Iraqi government to fund the reconstruction of the country, according to Iraqi Prime Minister Haider Al-Abadi.

“Oil prices are not at the required level to be used for sustainable development,” state TV quoted al-Abadi as saying during a press conference.

Iraq proclaimed itself victorious earlier this year after a three-year, hard-fought war against the terrorist Islamic State. The victory freed up some money—but not enough—for reconstructing the nation after almost 15 years after the demise of dictator Saddam Hussain and the fall of his regime.

The oil price crash of 2014 has made it difficult for fossil-fuel dependent countries to provide key government services to its citizens, and Iraq was not immune. In Iraq, years of financial mismanagement and domestic conflict exacerbated existing civil governance issues.

Just over a month has passed since the Kurdish referendum, which resulted in a near-unanimous vote for the Kurdistan Regional Government to secede from Iraq. Baghdad has not accepted the results of the vote, moving instead to deploy its military to secure control of the Kirkuk oilfields, which, though located in northern Iraq, do not lie in areas legally allotted to the KRG. The political consequences of the referendum have played out in a recent deal with Iran. 

With the Kurdistan autonomous region heavily dependent on oil revenues, chances are the government will seek to come to a mutually beneficial agreement with the central government in Baghdad. Yesterday, the region’s Prime Minister, Nechirvan Barzani acknowledged the adverse effect that the Iraqi offensive has had on the region’s oil income, saying it had fallen to less than 50 percent of what it used to be before October 16, when the offensive was launched.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Tom on November 15 2017 said:
    Socialist governments never have enough to invest in profitable businesses. Saudi Arabia is exhibit number one.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News