During the last years, Iraq has taken steps toward re-engagement on the international stage. Iraq has the potential to be one of the world's largest oil producers given its huge oil resources. Recent news flow suggests that this potential is moving closer to reality. The impact of a rejuvenated Iraqi oil industry could be transformative for both Iraq and global energy security.

In October 2010 Iraq revised its proved conventional oil reserves upwards by 24% to 143 billion barrels, the 3rd highest in the world.

If Iraq is able to achieve even half of the production increases officially targeted it could potentially reach 5-6 mln bpd of production within the next ten years, benefitting both Iraq and the global economy. An increase in Iraqi production also has the potential to radically shift the global outlook for global oil markets and the world economy. For comparison a 2.5 to 3.5 mln bpd increase in Iraq's oil production could counterbalance all of OPEC's output quota cuts since 2008.

In this context, the additional supply offered by a resurgence in Iraq's oil production capacity could do a great deal to reduce oil price risk in the global economy and provide continued momentum to the global economic recovery after the sharp global recession of 2008-2009.

Iraq Trade

Exports

$37.89 billion (2009)
Commodities: Crude oil, Crude materials excluding fuels, Food and live animals
Partners: South Korea, India, Italy, US

Imports

$35.77 billion (2009)
Commodities: Food, Medicine, Manufactures
Partners: China, Jordan, US 10, Turkey, Syria 26.2%