IEEJ: June 2010

Country Report
IRAQIEEJ: June 2010

Current Iraqi Energy Policy
 Iraq is located in west of Asia and its 450000

square kilometers surface, 30 million population,
Iraq was the world’s 13th largest oil producer in2008, and has the world’s third largest provenpetroleum reserves after Saudi Arabia and Canada.
Just a fraction of Iraq’s known fields are indevelopment, and Iraq may be one of the few
places left where vast reserves, proven andunknown, have barely been exploited.
 Iraq’s energy sector is heavily based upon oil, withapproximately 94 percent of its energy needs metwith petroleum.

IEEJ: June 2010

IEEJ: June 2010

Iraq’s oil sector has suffered over the past several decades
from sanctions, and its oil infrastructure is in need ofmodernization and investment.
2009 Iraqi budget allocated $3.2 billion to the Ministry ofOil, a 50% increase from the 2008 base budget, to continue
this work.
The economy of Iraq is petroleum-based; roughly 95% of
budget revenues and 98% of export earnings come from theoil industry.
Iraq’s proven natural gas reserves are 112 trillion cubic feet(Tcf) Probable Iraqi reserves have been estimated at 275300 Tcf.
Iraq’s proven gas reserves are the tenth largest in the world,and two-thirds of resources are associated with oil fields
Just under 20 percent of known gas reserves are nonassociated. The majority of non-associated reserves areconcentrated in several fields in the North.

IEEJ: June 2010

The Ministry of Oil reported thatapproximately 60 percent of associatednatural gas production is flared due to a lackof sufficient infrastructure to utilize it forconsumption and export. The flaring of thenatural gas has meant lost Liquefied
Petroleum Gas (LPG) output of an estimated
4,000 tons per day, while at the same time
there are LPG shortages requiring imports of
1,200 tons per day.

IEEJ: June 2010

1-Current Energy policy and measures ofeach country
The policy of the current energy points below, which
it happened as a result of the bad policy of the pastregime, because of ongoing wars and presented toan economic embargo and a comprehensive
science and is still trying to hinder the growth andstability till now:-IEEJ: June 2010

1
Sale the different types of energy
to the citizens at low prices.

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2
Approximately 60 percent ofassociated natural gas production isflared due to a lack of sufficient
infrastructure to utilize it for
consumption and export.

IEEJ: June 20103
The policy of rationalization toconsumption is weak and citizen
awareness is low in energy
consumption.

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4
Reliance on renewable energy is very
weak, "does not exceed 1% of totalenergy production" and there is nouse of solar energy in heating andwater heating.

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5
Total losses in electric power are very high" morethan 50% as a result of poor power factor andthe load of the transmission lines are higher
than the designated, the transmission anddistribution of electrical networks are very old
and the weakness of the supervisory role to theconsumers of electric power and the many
abuses and poor control meters and reluctanceto pay electricity bills and do not use smart
meters and distribution control centers and theweakness of bill collection.

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6

Weak in use of thermal
insulation in buildings

IEEJ: June 20107

Low level of environmental
awareness and lack of carbon
emissions reduction.

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Inefficient economic management of
the production and consumption ofelectricity and management ofelectrical systems and weak
coordination between relevantenergy ministries (oil andelectricity).

IEEJ: June 2010

From the above points we note theweaknesses of the energy policy of thecountry and that need to be a correct policy
urgently and applied to redress theimbalance for the purpose of energy saving
and end the suffering of the citizen as aresult of a shortage in the electrical supply
and volatility for oil products, to improve
services and develop agriculture, industry,
trade and security reality a result, reducecarbonemissions
toimprove
theenvironment....

IEEJ: June 2010

We include below a table that
contains
Information about the realityof electricity and oil in Iraq

IEEJ: June 2010

2008

2009

1

Oil production barrels/day

2.4 million
barrels/day

2.6 million barrels/day2

Oil Consumption barrels/day

0.6 million
barrels/day

0.6 million barrels/day

3

Associated Natural Gas Production million
cubic feet /day

4

Associated Natural Gas Utilization million
cubic feet /day

5

Associated Natural Gas Flared million cubicfeet /day

6

Electrical Energy Production billion KWhours

4052

7

Electrical Energy Demand billion KW hours

96

105

8

Electrical Power Demand MW

11000

12000

9

Electrical Power Generation MW

4538

5899

10

Electrical Power (peak) MW

6204

7575

11

Electrical Power Installed Capacity MW

13515

15362

1492

175

827665IEEJ: June 2010

2- Energy demand and supply (statistics)
2008

2009

1

Electrical Energy Demand mega watthour

73394000

77690000

2Electric Energy Supply mega watt hour39869055

518376383Electric Energy Sales mega watt hour

19598139

25857349

4

Percentage Losses

51%

52%

IEEJ: June 2010

3
Major difficulties and bottlenecks
currently faced in formulatingenergy policies of each country

IEEJ: June 2010

A
Electrical energy demand much
more than supply

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BThe supply & transportation of thefuel to the newly installed power
plants over the map of Iraq
(pipelines & trucks )IEEJ: June 2010

CThe national grid & distribution
networks needs to update &increase the capacity of its
components to face the increasing
rates in the energy demands.

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DShortage & quality of the Iraq rivers
water as they emerges mainly fromthe neighboring countries ( north ,south & west ) as they built many
dams to store the water for
irrigation & electrical power
generation which have a negative
effects on the power plants & thepower generation.

IEEJ: June 2010E
The lack of experience in (operation& maintenance) of the workers in
the power plants due to theexpansion of the newly installed
plants & the lack of the condensed
training for them.

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FThe product capacity of the Iraqi oil
refineries is less than the needs ofthe power generation so ministry ofelectricity imports large amountfrom the neighborCountries.

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4
Subjects I would like to study
in the order of priority andthe reason

IEEJ: June 2010

A
Implement of heat isolation to reduce theenergy consumptionIEEJ: June 2010

B
Increase the electrical energy tariff to reachthe real coast so create good behavior forenergy consumption and reduce theshortage of electric power productionIEEJ: June 2010

CDepend on solar power for heating & water
heating to compensate the shortage inelectric power.

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DReduction the losses & improve the power
factor because the losses in Iraqi electric
network exceed 50% and there is ability to
reduce it to 10%.

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EA plan for environmental improvement andreduction of carbonic emission

IEEJ: June 2010

Ja'afar Mohammed Hashimmohammadalarajy@yahoo.com
April 25, 2010

IEEJ: June 2010

Thank you for your attention

Contact: report@tky.ieej.or.jp