Oil professional Furat al-Moussawi warned that Iraq’s financial and strength challenges will maintain until 2028, attributing this to the u . s .’s close to-overall reliance on a rentier economic system and the lack of radical strategic solutions so far.
Iraq nonetheless suffers from a unmarried-source rentier economy that is out of step with global marketplace traits, and this has caused enormous damage to the national financial system.” He mentioned that “all cutting-edge tasks rely upon oil revenues without any real diversification in the productive sectors.”
He introduced, “The united states is presently exporting approximately 3.four million barrels in step with day, two hundred,000 barrels more than the restrict authorized beneath the OPEC agreement, which has alarmed the organisation and caused a few international locations, most appreciably Saudi Arabia, to are looking for to reclaim their market proportion.”
Al-Moussawi mentioned that “the rate of a barrel of oil accepted within the 3-year finances is $70, which poses a major mission in light of market fluctuations, even as the finances will now not regain balance unless the rate of a barrel reaches at least $fifty five.” He emphasised that “Iraq does no longer but have a sovereign wealth fund, which will increase the fragility of its economic scenario.”
inside the power zone, Al-Moussawi defined that “gas funding continues to be contingent on increasing oil manufacturing, which limits development ability.” He delivered that “the Karbala refinery has not yet been finished, as has an funding undertaking in Al-Faw, at a time when the united states of america does not have sufficient refineries to qualify it for regional competition.”
He endured, “The only clean venture currently is the agreement with overall, Qatar strength, and Basra Oil, which incorporates four strategic projects, such as exploiting seawater for oil fields, generating the primary one hundred megawatts of solar energy, and investing in four gas fields.”
He mentioned that “the government realizes that the contemporary strategy is ineffective, as evidenced by means of the shortage of effective investments and radical answers to the strength crisis,” caution of “the problem of achieving fuel self-sufficiency before 2028.”
Al-Moussawi emphasised that “geopolitical turmoil, which includes the Russia-Ukraine war and sanctions on Iran and different countries, has contributed to oil fee volatility, prompting OPEC to emphasise its study of market tendencies earlier than making any selection to growth production.”
The oil expert concluded by way of pronouncing, “Iraq stays in the weakest role among oil-producing countries due to its entire dependence on oil sales, missing any actual tools to ensure lengthy-term economic stability.”
