Should Iraq rely on state financing for energy projects?

There has scarcely been a more urgent time for Iraq to pursue crucial reforms in its energy sector to ensure that investment continues even when government revenues have been decimated by low oil prices. The alternative of continuing to rely on direct state financing of large projects only increases the risk that these projects are delayed.

Does Iraq's capital budget affect its long-term oil and Gas Development Goals?

The average annual capital budget allocated to the Ministry of Oil was one-fifth lower in the 2015‑18 period than in 2013, affecting Iraq’s ability to pursue its long-term oil and gas development targets.

Why is government financing a major infrastructure project in Iraq a problem?

The current model, which favours government financing of large infrastructure projects across the sector, is prohibitively burdensome at times of depressed oil revenues and risks indefinite delays to projects that are crucial to Iraq’s economic development.

Why is Iraq facing a major energy crisis?

Already in a fragile state, Iraq’s economy is today facing a major crisis resulting from the impact of the Covid-19 pandemic on global oil markets, underscoring the urgent need for reforms of the country’s energy sector.

Should natural gas and electricity be delayed in Iraq?

Given how essential both natural gas and electricity are to economic prosperity in Iraq, such delays should be avoided at all costs. They hold the key to the diversification that would make Iraq more resilient to oil price movements in the future.

Will IEA support Iraq's Energy reforms?

As Iraq’s newly formed government begins to tackle the long list of considerable challenges it faces, the IEA stands ready to support the country in its efforts to enact the reforms that will help its energy sector – and its economy – meet its vast potential.