Iraqi oil dilemma: to freeze or not to freeze

With the oil sector providing more than 90 percent of government revenues, Iraq’s dependence on the industry is among the highest in the region (source: macpixxel for GIS)

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Iraq

Date

14 April 2016

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Dr. Carole Nakhle

Dr. Carole Nakhle is the founder and CEO of Crystol Energy, an advisory, research and training firm based in London. An energy economist, she specializes in international petroleum contractual arrangements and fiscal regimes; upstream oil and gas regulations; petroleum revenue ...

In recent years, the international community has focused on the North American shale industry and its impact on the Organization of Petroleum Exporting Countries (OPEC), particularly Saudi Arabia. The United States led the growth in global oil supply in 2015, thanks to shale oil’s unexpected resilience in the face of lower prices. OPEC continues to stick to its position that it will not cut production. However, Saudi Arabia announced earlier this year that it was ready to freeze its production if other OPEC members follow suit. At the center of these developments, one country stands out: Iraq.

Iraq is OPEC’s second largest producer after Saudi Arabia and was the second biggest contrib...