9.5 Government Initiatives to enhance Iraq’s Bioeconomy
Boost the effectiveness of the oil industry
Iraq’s economy heavily relies on its oil and gas sector, anticipated to remain a key pillar in the foreseeable future. Despite having significant oil reserves, the country’s oil production of 4.5 million barrels per day doesn’t fully reflect its reserves. In comparison to the international rate, Iraq’s reserves-to-annual-production ratio is notably higher at 93.6 years in 2016, while globally, it’s 50.6 years. Despite aiming for ambitious oil production goals of 13.5 million barrels per day by 2017, Iraq fell short. Regarding natural gas, Iraq holds an estimated 112 trillion cubic feet in reserves, ranking 65th globally in production. There’s substantial unexplored potential, especially in the western deserts, with the possibility of significantly expanding gas reserves to 280 trillion cubic feet. Despite this potential, Iraq’s daily natural gas production of 2.8 cubic feet remains considerably low relative to its reserves compared to nations like Australia. Iraq faces economic losses due to the burning of gas resources, leading to significant financial implications. There’s underutilization of available Ethane gas, which could be harnessed for electricity and heating purposes. Currently, reliance on imported fuel for gas-powered electricity stations incurs costs and limits potential revenue from oil exports. However, reducing burned gas and shifting to natural gas-based electricity generation could yield substantial financial benefits and lower carbon emissions. The immediate challenge lies in curbing the burning of associated gas, which could be utilized to address energy shortages and develop various industries. The lack of a conducive framework for private-sector gas infrastructure investments, coupled with public budget constraints, hampers the necessary developments in gas extraction and utilization. As Iraq navigates its role in the global oil market, it confronts challenges posed by technological advancements, shifting energy markets, and climate change. With an eye on global trends, Iraq aims to support the global economy while adapting to changing market dynamics and environmental concerns. To enhance the oil sector, the goals encompass doubling oil production, improving export capabilities, enhancing refining capacities, and focusing on environmental preservation within oil-production areas. To achieve these objectives, efforts focus on field development, infrastructure enhancement, port and transport capacity augmentation, investment in gas resources, and prioritizing environmentally friendly technologies. The oil sector remains pivotal, providing resources, inputs, and energy while stimulating overall sectorial progress. The outlined goals and tools aim to bolster Iraq’s oil sector efficiency, reinforcing its position in the global energy landscape while navigating contemporary challenges.
Grow the agriculture industry and ensure food security
Iraq’s agriculture, primarily managed by the private sector, serves as a crucial livelihood source and the primary employer in rural areas. Predominantly, wheat and barley cover 80% of cultivated areas, with wheat being significant in the north and central regions, while the south features diverse crops with intermediate irrigation. Livestock and fishing contribute significantly to rural economies, accounting for 30-40% of agricultural production and providing essential food sources. Long-standing conflicts and sanctions have severely impacted food production in Iraq. Agricultural areas faced diminished outputs, price fluctuations, water scarcity, and security issues. Livestock endured substantial losses, reaching up to 95% in certain regions. Outdated equipment, limited access to irrigation tools, fertilizers, seeds, damaged infrastructure, and underfunding have worsened the post-conflict agricultural crisis, resulting in a significant drop in output. Recognizing agriculture as a major employer and a potential area for expansion, the focus remains on creating more arable lands and improving job opportunities, particularly for women. Augmenting agricultural production is crucial for ensuring food security for millions reliant on food aid. A robust agricultural sector is anticipated to drive economic growth, requiring significant investments to address challenges and boost economic contributions, food security, and job creation. Revitalizing the sector involves operational ties between agriculture and other sectors, infrastructural reconstruction, land system reforms, improved access to loans, and market mechanism enhancements. Simultaneously, efforts aim to ensure sustainable development, enhance competitiveness, and widen access, particularly for youth and women. New policies are necessary to drive productivity, diversify income, alleviate rural poverty, and enhance competitiveness. Key priorities encompass transitioning the government’s role in agriculture, improving farmers’ market access, fortifying food safety measures, supporting crops linked to food security, modernizing agricultural infrastructure, securing strategic crop reserves, and implementing modern technology for efficient irrigation.