Reopen Pipelines and ports. Establish trading
partners and return to world oil economy. Invest in new technology,
drilling, and refining technologies.
Oil is the most abundant natural resource in Iraq, and with 112 billion
barrels, Iraq has the second largest proven oil reserves in the world. It
has the theoretical potential to produce 3 million barrels a day. However,
economic sanctions, technological isolation and economic mismanagement
resulted in severe constraints on oil production. Moreover, the continued
sabotage by Saddam loyalists and foreign terrorists and looting in some
sections of the country damaged the infrastructure and caused interruptions
to the flow of crude to the refineries. Difficulties due to outdated
technology and poor maintenance at the refineries themselves and
interruptions to the flow of refined product to the cities have created the
need to import more petroleum products than originally projected. The main
products required are liquefied petroleum gas (LPG), used for cooking;
kerosene, used for heating in the winter months; benzene, for auto fuel; and
diesel, to fuel larger equipment and power generation.
Coalition Activities to Improve Oil Sector
CPA partners are focusing on activities that will:
· Repair and restore the oil infrastructure to pre war levels.
· Establish a professional security force to secure Iraq’s oil
· Ensure enough petroleum-based products are imported into Iraq to augment
refinery production and meet country’s basic power, transportation, and
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