Iraq could be the world’s third largest oil supplier by 2030 after the US and Brazil, according to a new report from the International Energy Agency (IEA)
The report titled ‘Iraq's Energy Sector: A Roadmap to a Brighter Future’ stated that despite the extraordinary challenges of war in recent years, Iraq has made impressive gains, almost doubling the country’s oil production over the past decade.
The IEA found that if Iraq can increase its water availability required for well injection, attract foreign capital, and maintain security and political stability, the OPEC country will reach the six mmbbl of oil production per day by 2030.
The outlook was downgraded from the last IEA review of Iraq’s energy prospects in 2012, when it predicted the production of 7.5 mmbbl per day by 2030, due to reduced plateau targets for many of the country’s major fields and increased capital competition.
The report also noted that more gas can be captured and used in efficient power plants. The IEA revealed that 16 bcm of gas is flared each year, more than enough to replace Iraq’s current imports.
The IEA recommended that Iraq should concentrate its efforts on reducing gas-flaring and clarify its ownership and monetisation of flared gas.
It has projected that flared gas can generate about three million homes by fuelling approximately 4.5GW of gas-fired energy.
The IEA has made several recommendations on the range of issues facing Iraq, including accelerating water projects so that sufficient water can be injected into the country’s southern pelagic fields; implementing projects to reduce gas flaring over the next two years and fully restoring the Baiji refinery.
Fatih Birol, the IEA’s executive director, commented, “Operating under extremely challenging circumstances, Iraq has done a remarkable job expanding its oil industry.”
