Atlantic Council GLOBAL ENERGY CENTER SHAPING IRAQ’S OIL AND GAS FUTURE Ellen Scholl SHAPING IRAQ’S OIL AND GAS FUTURE Ellen Scholl ISBN: 978-1-61977-482-7. Cover photo: Oil tankers load crude from the port of Basra in Iraq, one of the most import oil export points in the country, in 2012. Essam Al-Sudani (
[email protected]). This report is written and published in accordance with the Atlantic Council Policy on Intellectual Independence. The authors are solely responsible for its analysis and recommendations. The Atlantic Council and its donors do not determine, nor do they necessarily endorse or advocate for, any of this report’s conclusions. January 2018 CONTENTS Executive Summary 1 Introduction 2 The Politics of Energy in Iraq 4 All Politics Are Regional 10 Oil Development and Importance in Iraq 14 Energy Landscape: Oil Markets in Transition 16 Challenges and Recommendations 18 Gas Development Key to Iraq’s Future 22 State of Play: Iraq as a Nascent Gas Producer 25 Challenges and Recommendations 28 Conclusion 30 About the Author 31 EXECUTIVE SUMMARY nergy has and will continue to be an integral In addition to removing obstacles to increased part of the Iraqi economy for years to production and export growth, perhaps the biggest come. Oil revenue provides the bulk of the challenge for Iraq is sustainably managing the Iraqi national budget, as well as the budget resulting resource revenue in a way that serves Ein the Kurdistan Region of Iraq (KRI), providing a the country’s long-term development interests key source of revenue and funds for recovery and and improves the living conditions for all Iraqis.