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Home International Customs

Iraq’s oil industry must stop its self destruction

byCT Report
29/03/2016
in International Customs, Iraq
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BAGHDAD: Thirteen years after the invasion and occupation of Iraq by the US, UK and their allies and clients, the country is no more liberated, democratic, free of corruption, peaceful or united, And certainly worried about its future and the fragmentation that may come as a result of failing governments to safeguard the well-being of Iraqis.

These are stories you hear about daily on television channels and read in newspapers. In all modesty, I am not eloquent enough to add all the details and paint this tragic picture, but I will stick to the development of my area of expertise and readers can judge the rest for themselves.

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The oil industry — the pride of the country, its engine of growth and one of the best in the region since the mid-1950s — is now leaving a lot to be desired. The wars and sanctions prior to 2003 did a lot to put the industry back from its peak production of 3.5 million barrels a day (mbd) in 1979.

Yet in spite of the UN restrictions on exports and the deliberate delay in allowing services and materials to the industry, Iraqi production in 2001, just over a year before the occupation, was 2.583-mbd. The removal of all sanctions, availability of funds and the purported support from the occupying powers were not sufficient to reach the 2001 production until 2011.

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