Petroleum industry in Iraq

Iraq was the world's 12th largest oil producer in 2009, and has the world's fifth largest proven petroleum reserves after Venezuela, Saudi Arabia, Canada, and Iran. Just a fraction of Iraq's known fields are in development, and Iraq may be one of the few places left where vast reserves, proven and unknown, have barely been exploited. Iraq's energy sector is heavily based upon oil, with approximately 94 percent of its energy needs met with petroleum. In addition, crude oil export revenues accounted for over two-thirds of GDP in 2009. Iraq's oil sector has suffered over the past several decades from sanctions and wars, and its oil infrastructure is in need of modernization and investment. As of June 30, 2010, the United States had allocated US$2.05 billion to the Iraqi oil and gas sector to begin this modernization, but ended its direct involvement as of the first quarter of 2008. According to reports by various U.S. government agencies, multilateral institutions and other international organizations, long-term Iraq reconstruction costs could reach US$100bn or higher.[2]

Iraqi oil production has surged after years of disorder.[1]


Turkish-born Armenian Calouste Gulbenkian played a major role in making the petroleum reserves of the Middle East available to Western development and is accredited with being the first person to exploit Iraqi oil.[3]

During the 20th century the Ottoman Empire granted a concession allowing William Knox D'Arcy to explore oil fields in its territories which, after the dissolution of the Ottoman Empire, became the modern countries of Iran and Iraq. Eventually D'Arcy and other European partners founded the Turkish Petroleum Company (TPC) in 1912, which was renamed the Iraqi Petroleum Company in later years.[4][5][6]

Baba Gurgur
Kirkuk district: an oil gusher spouting with a stream of oil in foreground.

After the partition of the Ottoman Empire, the British gained control of Mosul in 1921.[4] In 1925, TPC obtained a 75-year concession to explore for oil in exchange for a promise that the Iraqi government would receive a royalty for every ton of oil extracted. A well was located at Baba Gurgur just north of Kirkuk. Drilling started, and in the early hours of 14 October 1927 oil was struck. The oil field in Kirkuk proved extensive. [7]

Discovery of oil in Kirkuk hastened the negotiations over the composition of TPC, and on 31 July 1928 shareholders signed a formal partnership agreement to include the Near East Development Corporation (NEDC)—an American consortium of five large US oil companies that included Standard Oil of New Jersey, Standard Oil Company of New York (Socony), Gulf Oil, the Pan-American Petroleum and Transport Company, and Atlantic Richfield Co.. (By 1935, only Standard Oil of New Jersey and Standard Oil of New York were left).[8][9] The agreement was called the Red Line Agreement for the "red line" drawn around the former boundaries of the Ottoman Empire.[10][11] The Red Line Agreement lasted until 1948 when two of the American partners broke free. During the period, IPC monopolized oil exploration inside the Red Line; excluding Saudi Arabia and Bahrain, where ARAMCO (formed in 1944 by renaming of the Saudi subsidiary of Standard Oil of California (Socal)) and Bahrain Petroleum Company (BAPCO) respectively held controlling position.[10]

After Muhammad Mossadegh nationalized the oil industry in Iran, IPC agreed to accept an "equal profit sharing" arrangement in 1952. Instead of a flat royalty payment, Iraq would be paid 12.5% of the sale price of each barrel.[12] However, foreign company control of Iraq's oil assets was unpopular and in 1958 Abd al-Karim Qasim overthrew Faisal II of Iraq. After seizing control of the Iraqi government, Qasim demanded better terms from IPC but decided against nationalization of Iraq's petroleum assets.[4]

In 1961 Iraq passed Public Law 80 whereby Iraq expropriated 95% of IPC's concessions and the Iraq National Oil Company was created and empowered to develop the assets seized from IPC under Law 80. This arrangement continued in 1970 when the government demanded even more control over IPC, eventually nationalizing IPC after negotiations between the company and the government broke down. By this time the Ba'ath Party was in power in Iraq and Saddam Hussein was its de facto ruler, although Ahmed Hassan al-Bakr did not formally step down as President until 1979.[13][14]

In February 2007, during the Iraq War, the Iraqi cabinet approved a draft law that would distribute oil revenues to the various regions and provinces of Iraq based on population, and would also give regional oil companies the authority to enter into contractual arrangements directly with foreign companies concerning the exploration and development of oil fields. Iraqis remained divided over provisions allowing regional governments to enter into contracts directly with foreign companies; while strongly supported by Kurds, Sunni Arabs wanted the Oil Ministry to retain signing power. As a compromise the draft law proposed that a new body called the Federal Oil and Gas Council would be created that could, in some circumstances, prevent execution of contracts signed by regional governments.[15] This arrangement undid the Ba'athist era nationalization of the oil industry.




A map of world oil reserves according to U.S. EIA, 2017
See: Oil reserves in Iraq

According to the Oil and Gas Journal, Iraq's proven oil reserves are 115 billion barrels, although these statistics have not been revised since 2001 and are largely based on 2-D seismic data from nearly three decades ago. Geologists and consultants have estimated that relatively unexplored territory in the western and southern deserts may contain an estimated additional 45 to 100 billion barrels (bbls) of recoverable oil. Iraqi Oil Minister Hussain al-Shahristani said that Iraq is re-evaluating its estimate of proven oil reserves, and expects to revise them upwards. A major challenge to Iraq's development of the oil sector is that resources are not evenly divided across sectarian-demographic lines. Most known hydrocarbon resources are concentrated in the Shiite areas of the south and the ethnically Kurdish north, with few resources in control of the Sunni minority. The majority of the known oil and gas reserves in Iraq form a belt that runs along the eastern edge of the country. Iraq has 9 fields that are considered super giants (over 5 billion bbls) as well as 22 known giant fields (over 1 billion bbls). According to independent consultants, the cluster of super-giant fields of southeastern Iraq forms the largest known concentration of such fields in the world and accounts for 70 to 80 percent of the country's proven oil reserves. An estimated 20 percent of oil reserves are in the north of Iraq, near Kirkuk, Mosul and Khanaqin. Control over rights to reserves is a source of controversy between the ethnic Kurds and other groups in the area.[16]


In 2009, Iraq's crude oil production averaged 2.4 million barrels per day (mbd), about the same as 2008 levels, and below its pre-war production capacity level of 2.8 million mbd After the end of the US invasion the production increased on a high level, even though a new invasion from the so-called ISIL started. Production in March 2016 stood at 4.55 million barrels a day. Which seems to will become a new all-time peak year for Iraq if OPEC talks about freezing or reduce production held in April 2016 will not led to a reduction. The old peak was 1979 with 171.6 million tons of oil compared to 136.9 million tons produced in 2011 and 152.4 million tons in 2012.[17][18] The company's geographical operation area spans the following governorates: Kirkuk, Nineveh, Erbil, Baghdad, Diyala, and part of Babil to Hilla and Wasit to Kut. The remainder falls under the jurisdiction of the SOC and MOC, and though smaller in geographical size, includes the majority of proven reserves. MOC's oil fields hold an estimated 30 billion barrels of reserves. They include Amarah, Field, Huwaiza, Noor, Rifaee, Dijaila, Kumait and East Rafidain.[19]

A 2012 report by the International Energy Agency estimated that Iraq could increase production from 2.95 mbd in 2012 to 6.1 mbd by 2020, which would increase Iraq's oil revenues to $5 trillion between 2012 and 2035, or around $200 billion per year.[4]

Iraq has begun an ambitious development program to develop its oil fields and to increase its oil production. Passage of the proposed Hydrocarbons Law, which would provide a legal framework for investment in the hydrocarbon sector, remains a main policy objective. Despite the absence of the Hydrocarbons Law, the Ministry of Oil (Iraq) signed 12 long-term contracts between November 2008 and May 2010 with international oil companies to develop 14 oil fields. Under the first phase, companies bid to further develop 6 giant oil fields that were already producing with proven oil reserves of over 43 billion barrels. Phase two contracts were signed to develop oil fields that were already explored but not fully developed or producing commercially. Together, these contracts cover oil fields with proven reserves of over 60 billion barrels, or more than half of Iraq's current proven oil reserves. As a result of these contract awards, Iraq expects to boost production by 200,000 bbl/d by the end of 2010, and to increase production capacity by an additional 400,000 bbl/d by the end of 2011. When these fields are fully developed, they will increase total Iraqi production capacity to almost 12 million bbl/d, or 9.6 million bbl/d above current production levels. The contracts call for Iraq to reach this production target by 2017.

Iraq faces many challenges in meeting this timetable. One of the most significant is the lack of an outlet for significant increases in crude oil production. Both Iraqi refining and export infrastructure are currently bottlenecks and need to be upgraded to process much more crude oil. Iraqi oil exports are currently running at near full capacity in the south, while export capacity in the north has been restricted by sabotage, and would need to be expanded in any case to export significantly higher volumes. Production increases of the scale planned will also require substantial increases in natural gas and/or water injection to maintain oil reservoir pressure and boost oil production.

Iraq has associated gas that could be used, but it is currently being flared. Another option is to use water for re-injection, and locally available water is currently being used in the south of Iraq. However, fresh water is an important commodity in the Middle East, and large amounts of seawater will likely have to be pumped in via pipelines that have yet to be built. ExxonMobil has coordinated initial studies at water injection plans for many of the fields under development. According to their estimate, 10–15 million bbl/d of seawater could be necessary for Iraq's expansion plans, at a cost of over $10 billion.

Furthermore, Iraq's oil and gas industry is the largest industrial customer of electricity, with over 10 percent of total demand. Large-scale increases in oil production would also require large increases in power generation. However, Iraq has struggled to keep up with the demand for power, with shortages common across Iraq. Significant upgrades to the electricity sector would be needed to supply additional power. Iraq also plans to sign delineation agreements on shared oil fields with Kuwait and Iran. Iraq would like to set up joint committees with its neighbors on how to share the oil.

According to the Oil and Gas Journal, Iraq's proven natural gas reserves are 112 trillion cubic feet (Tcf), the tenth largest in the world. An estimated 70 percent of these lie in Basra governorate in the south of Iraq. Probable Iraqi reserves have been estimated at 275–300 Tcf, and work is currently underway by several IOCs and independents to accurately update hydrocarbon reserve numbers. Two-thirds of Iraq's natural gas resources are associated with oil fields including, Kirkuk, as well as the southern Nahr Bin) Umar, Majnoon, Halfaya, Nassiriya, the Rumaila fields, West Al-Qurnah, and Zubair. Just under 20 percent of known gas reserves are non-associated; around 10 percent is salt dome gas. The majority of non-associated reserves are concentrated in several fields in the North including: Ajil, Bai Hassan, Jambur, Chemchemal, Kor Mor, Khashem al-Ahmar, and Khashem al-Ahmar.

Field / block Company Home country Company type Share in field Plateau production target (bpd) Service fee per bbl ($) Gross revenue at plateau ($/yr)
Majnoon Shell Netherlands Public 45% 1,800,000 1.39 410,953,500
Majnoon Petronas Malaysia State 30% 1,800,000 1.39 273,969,000
Halfaya CNPC China State 37.5% 535,000 1.4 102,519,375
Halfaya Petronas Malaysia State 18.75% 535,000 1.4 51,259,688
Halfaya Total France Public 18.75% 535,000 1.4 51,259,688
Rumaila BP UK Public 37.5% 2,850,000 2 780,187,500
Rumaila CNPC China State 37.5% 2,850,000 2 780,187,500
Zubair ENI Italy Public 37.81% 1,200,000 2 287,415,600
Zubair Occidental US Public 23.44% 1,200,000 2 205,334,400
Zubair KOGAS Korea State 18.75% 1,200,000 2 164,250,000
West Qurna Field Phase 2 Lukoil Russia Public 75% 1,800,000 1.15 566,662,500
Badra Gazprom Russia State 30% 170,000 5.5 102,382,500
Badra Petronas Malaysia State 15% 170,000 5.5 51,191,250
Badra KOGAS Korea State 22.5% 170,000 5.5 76,786,875
Badra TPAO Turkey State 7.5% 170,000 5.5 25,595,625
West Qurna Field Phase 1 Exxon US Public 60% 2,325,000 1.9 967,432,500
West Qurna Field Phase 1 Shell Netherlands Public 15% 2,325,000 1.9 241,858,125
Qayara Sonangol Angola State 75% 120,000 5 164,250,000
Najmah Sonangol Angola State 75% 110,000 6 180,675,000
Garraf Petronas Malaysia State 40% 230,000 1.49 56,288,475
Garraf JAPEX Japan Public 30% 230,000 1.49 37,525,650
Missan Group CNOOC China State 63.75% 450,000 2.30 240,831,562.5
Missan Group TPAO Turkey State 11.25% 450,000 2.30 42,499,687.5

Notes: 1. Field shares are as a % of the total. The Iraq state retains a 25% share in all fields for which Service Contracts have been awarded.


Export pipelines

To the North: Iraq has one major crude oil export pipeline, the Kirkuk-Ceyhan Oil Pipeline, which transports oil from the north of Iraq to the Turkish port of Ceyhan.This pipeline has been subject to repeated disruptions this decade, limiting exports from the northern fields. Iraq signed an agreement with Turkey to extend the operation of the 1.6 million bbl/d pipeline, as well as to upgrade its capacity by 1 million bbl/d. In order for this pipeline to reach its design capacity, Iraq would need to receive oil from the south via the Strategic Pipeline, which was designed to allow flows of crude oil from the south of Iraq to go north via Turkey, and vice versa. Iraq has proposed building a new strategic line from Basra to the northern city of Kirkuk, with the line consisting of two additional crude oil pipelines. To the West: The Kirkuk-Banias Oil Pipeline has been closed and the Iraqi portion reported unusable since the 2003 war in Iraq. Discussions were held between Iraqi and Syrian government officials to re-open the pipeline, which had a design capacity of 700,000 bbl/d, although actual volumes never reached this level. The Russian company Stroytransgaz accepted an offer to fix the pipeline in December 2007, but no follow-up was made. Iraq and Syria have discussed building several new pipelines, including a 1.5 million bbl/d pipeline carrying heavy crude oil, and a 1.25 million bbl/d pipeline for carrying light crudes. To the South: The 1.65 million bbl/d Iraq Pipeline to Saudi Arabia (IPSA) has been closed since 1991 following the Persian Gulf War. There are no plans to reopen this line. Iraq has also held discussions to build a crude oil pipeline from Haditha to Jordan's port of Aqaba.


Iraq seaborne crude oil exports by destination in 2017 (31760972217)
Destination of Iraqi seaborne exports of crude oil in 2017

The Basra Oil Terminal on the Persian Gulf has an effective capacity to load 1.3 million bbl/d and support Very Large Crude Carriers. In February 2009, the South Oil Company commissioned Foster Wheeler to carry out the basic engineering design to rehabilitate and expand capacity of the terminal by building four single point mooring systems with a capacity of 800,000 bbl/d each. According to former Minister of Oil Issam al-Chalabi, it would take at least until 2013 to complete the project if financing is found. There are five smaller ports on the Persian Gulf, all functioning at less than full capacity, including the Khor al-Amaya terminal.

Overland export routes

Overland routes are used to export limited amounts of crude from small fields bordering Syria. In addition, Iraq has resumed shipping oil to Jordan's Zarqa refinery by road tankers at a rate of 10,000 bbl/d.


Estimates of Iraqi nameplate refining capacity vary, from 637,500 bbl/d according to the Oil and Gas Journal to 790,000 bbl/d according to the Special Inspector General for Iraqi Reconstruction. Iraqi refineries have antiquated infrastructure and only half run at utilization rates of 50 percent or more. Despite improvements in recent years, the sector has not been able to meet domestic demand of about 600,000 bbl/d, and the refineries produce too much heavy fuel oil and not enough other refined products. As a result, Iraq relies on imports for 30 percent of its gasoline and 17 percent of its LPG. To alleviate product shortages, Iraq's 10-year strategic plan for 2008-2017 set a goal of increasing refining capacity to 1.5 million bbl/d, and is seeking $20 billion in investments to achieve this target. Iraq has plans for 4 new refineries, as well as plans for expanding the existing Daura and Basra refineries.

Natural gas


Gas production

Iraqi natural gas production rose from to 81 (billion) Bcf in 2003 to 522 Bcf in 2008. Some is used as fuel for power generation, and some is re-injected to enhance oil recovery. Over 40 percent of the production in 2008 was flared due to a lack of sufficient infrastructure to utilize it for consumption and export, although Royal Dutch Shell estimated that flaring losses were even greater at 1 Bcf per day. As a result, Iraq's five natural gas processing plants, which can process over 773 billion cubic feet per year, sit mostly idle. To reduce flaring, Iraq has been working on an agreement with Royal Dutch Shell to implement a 25-year project to capture flared gas and provide it for domestic use. Iraq's cabinet gave preliminary approval for the $17 billion deal covering development of 25–30 Tcf of associated natural gas reserves in Basra province through a new joint venture, Basra Gas Company. The agreement, which originally was to cover all of Basra Governorate, has been modified to include only the associated gas from the Rumaila, Zubair, and West Qurna Phase I projects. Implementation of this agreement is necessary for the new oil development projects to go forward.

Upstream development

Iraq has planned an upstream bidding round in late 2010 for three non-associated natural gas fields with combined reserves of over 7.5 Tcf. This will be the third hydrocarbon bidding round conducted by Iraq, following two earlier rounds that were held to develop Iraq's oil fields. All of the companies that prequalified to bid in the two earlier rounds will be invited. Iraq has committed to purchasing 100 percent of the gas.


Plans to export natural gas remain controversial due to the amount of idle and sub-optimally fired electricity generation capacity in Iraq—much a result of a lack of adequate gas feedstock. Prior to the 1990–1991 Gulf War, Iraq exported natural gas to Kuwait. The gas came from Rumaila through a 105-mile, 400-MMcf/d pipeline to Kuwait's central processing center at Kuwait. In 2007, the Ministry of Oil announced an agreement to fund a feasibility study on the revival of the mothballed pipeline. Iraq has eyed northern export routes such as the proposed Nabucco pipeline through Turkey to Europe, and in July 2009 Prime Minister Nouri al-Maliki suggested that Iraq could be exporting 530 Bcf per year to Europe by 2015. A second option is the Arab Gas Pipeline (AGP) project. The proposed AGP pipeline would deliver gas from Iraq's Akkas field to Syria and then on to Lebanon and the Turkish border sometime in 2010, and then on to Europe. Other proposals have included building LNG exporting facilities in the Basra region.

See also


  1. ^ "Country Analysis Brief: Iraq". US Energy Information Administration. 28 April 2016. Retrieved 6 May 2016.
  2. ^ Donovan, Thomas W. "Iraq's Petroleum Industry: Unsettled Issues". Middle East Institute. Retrieved 23 June 2013.
  3. ^ Britannica Concise Encyclopedia. Chicago: Encyclopædia Britannica, Inc. 2006. p. 817. ISBN 1593394926.
  4. ^ a b c d ILEI-Oil-and-Gas-Law.pdf (PDF), retrieved 2018-06-12
  5. ^ J. Zedalis, Rex (September 2009). The Legal Dimensions of Oil and Gas in Iraq | Current Reality and Future Prospects. Cambridge University Press. p. 360. ISBN 9780521766616.
  6. ^ "IPC - History and early development". Retrieved 22 August 2012.
  7. ^ Morton, Michael Quentin (May 2006). In the Heart of the Desert (In the Heart of the Desert ed.). Aylesford, Kent, United Kingdom: Green Mountain Press (UK). ISBN 978-0-9552212-0-0. 095522120X.
  8. ^ "MILESTONES: 1921-1936, The 1928 Red Line Agreemen". US Department of State. Archived from the original on 29 July 2012. Retrieved 18 August 2012.
  9. ^ "Business & Finance: Socony-Vacuum Corp". Time. 1931-08-10. Retrieved 2012-08-20.
  10. ^ a b Stephen Hemsley Longrigg (1961). Oil in the Middle East. New York: Oxford University Press. OCLC 237163.
  11. ^ Daniel Yergin (1991). The Prize (The prize ed.). New York: Simon & Schuster. ISBN 0-671-50248-4. 0671502484. TPC was renamed the Iraqi Petroleum Company (IPC) in 1929.
  12. ^ Samir Saul (2007). "Masterly Inactivity as Brinkmanship: The Iraq Petroleum Company's Route to Nationalization, 1958-1972". The International History Review. 29 (4): 746–792. JSTOR 40110926.
  13. ^ Benjamin Shwadran (1977). Middle East Oil: Issues and Problems. Transaction Publishers. p. 30f. ISBN 0-87073-598-5.
  14. ^ Toyin Falola; Ann Genova (2005). The Politics of the Global Oil Industry: An Introduction. Praeger/Greenwood. p. 61. ISBN 0-275-98400-1.
  15. ^ Wong, Edward (2007-02-27). "Iraqi cabinet approves national oil law". The New York Times. ISSN 0362-4331. Retrieved 2018-06-12.
  16. ^ "Industry in Iraq". Middleeast Arab. Retrieved 23 June 2013.
  17. ^ "Iraq oil output hits record high ahead of production freeze talks". RT. Retrieved 16 April 2016.
  18. ^ "statistical review of world energy 2013" (PDF). British Petroleum. Retrieved 16 April 2016.
  19. ^ Sorkhabi, Rasoul. "Iraq". Oil Edge. Archived from the original on October 29, 2013. Retrieved 6 May 2016.CS1 maint: Unfit url (link)
Al Başrah Oil Terminal

Al Başrah Oil Terminal, commonly referred to as ABOT, is a strategically critical Iraqi offshore, deep sea crude oil marine loading terminal that lies approximately 50 km (31 mi) southeast of the Al-Faw Peninsula in the Persian Gulf. Along with its sister terminal, the Khawr al ‘Amīyah Oil Terminal (ميناء خور العمية, alt. Khor al-Amaya Oil Terminal, KAAOT), the terminals provide the principal point of export for more than eighty percent of Iraq's gross domestic product as of 2009, and all of the oil from the southern Başrah refinery.

Crude oil produced for export from the southern Iraqi oilfields is carried through three 48 in (1.2 m) diameter pipelines to the southern tip of the al-Faw Peninsula and then undersea to the ABOT(29°40′54″N 48°48′33″E) platform. One 48 in (1.2 m) and two 32 in (0.81 m) pipelines supply the KAAOT(29°47′00″N 48°48′25″E) platform.The ABOT facilities can transfer up to 3 million barrels (480,000 m3) (Mbbl) of oil per day when all four of its supertanker berths operate at maximum capacity and has a maximum draft of 21 m (69 ft). Three single-point mooring systems (SPM) were added in 2012, each with a design rating of 800 thousand barrels (130,000 m3) (kbbl) of oil per day, and two more SPMs are planned to be operational by 2013 to increase total loading capacity to 6.4–6.6 Mbbl (1,020,000–1,050,000 m3) of oil per day.The KAAOT facility has a shallower depth and its two berths can accommodate Suezmax oil tankers with capacities up to 1 Mbbl (160,000 m3) or 200,000 DWT and has the capacity to transfer about 240 kbbl (38,000 m3) of oil daily.

East Texas Oil Field

The East Texas Oil Field is a large oil and gas field in east Texas. Covering 140,000 acres (57,000 ha) and parts of five counties, and having 30,340 historic and active oil wells, it is the second-largest oil field in the United States outside Alaska, and first in total volume of oil recovered since its discovery in 1930.

Over 5.42 billion barrels of oil have been produced from it to-date. It is a component of the Mid-Continent Oil Province, the huge region of petroleum deposits extending from Kansas to New Mexico to the Gulf of Mexico.

The field includes parts of Gregg, western Rusk, southern Upshur, southeastern Smith, and northeastern Cherokee counties in the northeastern part of the state. Overall the field is about 45 miles (72 km) long on the north-south axis, and five miles (8 km) across. Interstate 20 cuts across the field from east to west, and the towns of Kilgore, Overton, and Gladewater are on the field. At one time, downtown Kilgore had more than 1,000 active wells clustered in a tight area, making it the densest oil development in the world.

Energy development

Energy development is the field of activities focused on obtaining sources of energy from natural resources. These activities include production of conventional, alternative and renewable sources of energy, and for the recovery and reuse of energy that would otherwise be wasted. Energy conservation and efficiency measures reduce the demand for energy development, and can have benefits to society with improvements to environmental issues.

Societies use energy for transportation, manufacturing, illumination, heating and air conditioning, and communication, for industrial, commercial, and domestic purposes. Energy resources may be classified as primary resources, where the resource can be used in substantially its original form, or as secondary resources, where the energy source must be converted into a more conveniently usable form. Non-renewable resources are significantly depleted by human use, whereas renewable resources are produced by ongoing processes that can sustain indefinite human exploitation.

Thousands of people are employed in the energy industry. The conventional industry comprises the petroleum industry, the natural gas industry, the electrical power industry, and the nuclear industry. New energy industries include the renewable energy industry, comprising alternative and sustainable manufacture, distribution, and sale of alternative fuels.

History of the petroleum industry

The petroleum industry is not of recent origin, but petroleum's current status as the key component of politics, society, and technology has its roots in the early 20th century. The invention of the internal combustion engine was the major influence in the rise in the importance of petroleum.

Oil reserves in Iraq

Oil reserves in Iraq are considered the world’s fifth-largest proven oil reserves, with 140 billion barrels. The sources for this oil is primarily located in the Shiite Muslims-majority and Arab Sunni Muslims-dominated areas on the other hand are comparatively lacking.As a result of military occupation and civil unrest, the official statistics have not been revised since 2001 and are largely based on 2-D seismic data from three decades ago. International geologists and consultants have estimated that unexplored territory may contain vastly larger reserves. The majority of Iraq's proven reserves of oil comes from the following cities: Basra (Being #1), Baghdad (Being #2), Ramadi (Being #3), and finally, Ba'aj (Being the last oil rich city).A measure of the uncertainty about Iraq's oil reserves is indicated by widely differing estimates. The U.S. Department of Energy (DOE) estimated in 2003 that Iraq had 112 billion barrels (17.8×10^9 m3). The United States Geological Survey (USGS) in 1995 estimated proven reserves were 78 Gbbl (12.4×10^9 m3). Iraq's prewar deputy oil minister said that potential reserves might be 300 Gbbl (48×10^9 m3). The source of the uncertainty is that due to decades of war and unrest, many of Iraq's oil wells are run down and unkept. Repairs to the wells and oil facilities should make far more oil available economically from the same deposits. Iraq may prove to contain the largest extractable deposits of oil in the entire Middle East once these upgrading and facility improvements have advanced.

After more than a decade of sanctions and two Gulf Wars, Iraq’s oil infrastructure needs modernization and investment. Despite a large reconstruction effort, the Iraqi oil industry has not been able to meet hydrocarbon production and export targets. The World Bank estimates that an additional $1 billion per year would need to be invested just to maintain current production. Long-term Iraq reconstruction costs could reach $100 billion or higher, of which more than a third will go to the oil, gas and electricity sectors. Another challenge to Iraq's development of the oil sector is that resources are not evenly divided across sectarian lines. Most known resources are in the Shiite areas of the south and the Kurdish north, with few resources in control of the Sunni population in the center.

In 2006, Iraq's oil production averaged 2.0 million barrels per day (320×10^3 m3/d), down from around 2.6 Mbbl/d (410×10^3 m3/d) of production prior to the coalition invasion in 2003. Iraq's reserve to production ratio is 158 years. After the end of the invasion the production increased on a high level, even though there is an invasion from the so-called ISIL the production in March 2016 stood at 4.55 million barrels a day. Which seems to well become a new all-time peak year for Iraq if OPEC talks about freezing or reduce production held in April 2016 will not lead to a reduction. The old peak was 1979 with 171.6 million tons of oil compared to 136.9 million tons produced in 2011 and 152.4 million tons in 2012.

Oil shale

Oil shale is an organic-rich fine-grained sedimentary rock containing kerogen (a solid mixture of organic chemical compounds) from which liquid hydrocarbons can be produced, called shale oil (not to be confused with tight oil—crude oil occurring naturally in shales). Shale oil is a substitute for conventional crude oil; however, extracting shale oil from oil shale is more costly than the production of conventional crude oil both financially and in terms of its environmental impact. Deposits of oil shale occur around the world, including major deposits in the United States. A 2016 estimate of global deposits set the total world resources of oil shale equivalent of 6.05 trillion barrels (962 billion cubic metres) of oil in place.Heating oil shale to a sufficiently high temperature causes the chemical process of pyrolysis to yield a vapor. Upon cooling the vapor, the liquid shale oil—an unconventional oil—is separated from combustible oil-shale gas (the term shale gas can also refer to gas occurring naturally in shales). Oil shale can also be burned directly in furnaces as a low-grade fuel for power generation and district heating or used as a raw material in chemical and construction-materials processing.Oil shale gains attention as a potential abundant source of oil whenever the price of crude oil rises. At the same time, oil-shale mining and processing raise a number of environmental concerns, such as land use, waste disposal, water use, waste-water management, greenhouse-gas emissions and air pollution. Estonia and China have well-established oil shale industries, and Brazil, Germany, and Russia also utilize oil shale.General composition of oil shales constitutes inorganic matrix, bitumens, and kerogen. Oil shales differ from oil-bearing shales, shale deposits that contain petroleum (tight oil) that is sometimes produced from drilled wells. Examples of oil-bearing shales are the Bakken Formation, Pierre Shale, Niobrara Formation, and Eagle Ford Formation.

Organization of United States Air Force Units in the Gulf War

The 1990–1991 Gulf War was the last major United States Air Force combat operation of the 20th Century. The command and control of allied forces deployed to the Middle East initially as part of Operation Desert Shield, later engaging in combat operations during Operation Desert Storm, were assigned to United States Central Command Air Forces (USCENTAF), the USAF component of the Joint United States Central Command.

United States Air Force units were initially deployed to Saudi Arabia in August 1990, being assigned directly to CENTAF with a mission to defend the kingdom. In November 1990, the decision was made to enhance the force into an offensive-capable one, and additional units were ordered deployed to CENTAF. As a result, CENTAF set up a table of organization which established provisional Air Divisions to prevent too many units reporting directly to CENTAF headquarters. These were as follows:

The 14th Air Division (Provisional) commanded deployed primarily Tactical Air Command and United States Air Forces in Europe units with the mission of destroying enemy air, missile and ground forces, as well as enemy infrastructure targets. To accomplish this mission, the 14th-controlled A-10 Thunderbolt II ground attack aircraft; F-15C Eagle and F-16 Fighting Falcon fighters; F-111 light tactical bombers; EF-111 Raven electronic combat aircraft and the F-117 stealth attack aircraft. The division also provided electronic warfare, reconnaissance, and in-theater attached Strategic Air Command refueling support.

The 15th Air Division (Provisional) commanded deployed Tactical Air Command units with a reconnaissance and electronic warfare mission focused on defeating enemy ground base air defenses and increasing the effectiveness of friendly formations. Aircraft deployed included RF-4C Phantom II tactical reconnaissance; F-4G Phantom II anti-radar; EC-130H Compass Call electronic warfare and two prototype E-8A Joint Stars battle management and command and control aircraft.

The 1610th Air Division (Provisional) controlled Military Airlift Command C-130E/H Hercules theater airlift, aeromedical evacuation and Air Force Special Operations Command forces. Strategic Air Command deployed strategic electronic warfare and reconnaissance units also attached.

The 17th Air Division (Provisional) commanded primarily provisional air refueling wings created from active-duty KC-135/KC-10 units of the Strategic Air Command's Fifteenth Air Force and SAC Air National Guard KC-135 units deployed within the CENTAF AOR.

The SAC 7th Air Division commanded deployed Air Refueling and B-52 Stratofortress Bombardment Wings located outside of the CENTAF AOR.

The 7440th Composite Wing was a United States Air Forces in Europe (USAFE) Provisional Wing under Joint Task Force Proven Force that flew combat missions over Northern and Central Iraq from Incirlik Air Base, Turkey.

Pine Mills Oilfield

The Pine Mills Oilfield is an oilfield developed in the late 1940s and early 1950s located in Wood county, Texas stemming out from the townsite of Pine Mills toward US Highway 80 and the settlement of Crow, Texas. J.M. "Julius" DeuPree and his partner F.R. Jackson are credited with being responsible for the initial exploration of the Pine Mills Oil Field. He established the No. 1 Durratt near Pine Mills in 1949. DeuPree and Jackson were aided by L.A. Warren a land man for Sohio.Two test wells were announced by DeuPree and Jackson during the last week of September and early October, 1949. By this time the October 3 Wood County Record went to press, an official at First National Bank of Mineola estimated that approximately $300,000 in lease and royalty buying had been unleashed by the fact that oil flowed from the area's first discovery well.The No. 1 Duratt was gauged at 168 barrels per day as of October 6, 1949. Production was from top of pay at 4,793', the total depth of the well was 4,801 feet, and the elevation was 433 feet. The well was in the sub-Clarksville sand.The No. 1 Duratt set off exploration over a wider portion of the field. Mineral rights were leased from Pine Mills to US Highway 80 west of Crow and all the way to the Pine Mills townsite. The first wells in the area were going to be allowed to flow 100 barrels per day for thirty days a month.\

The second producing well in the Pine Mills Field was the Schio No. 1 Gordon Turner, and the well was reported to have struck approximately 22 feet of oil bearing sand the last week of October, 1949.The Pine Mills field continued its expansion and, early in 1951, the initial wildcat test well in the S. Holman Survey was done approximately a mile west of the Pine Mills Field, and reached oil in March 1951, extending the size of the field. The test well was believed to have cut in to a fault running north-south parallel to the Pine Mills Field fault. In April 1951, the B.B. Orr No. 1 Childress extension well in the Pine Mills Field struck oil.

Texas oil boom

The Texas oil boom, sometimes called the gusher age, was a period of dramatic change and economic growth in the U.S. state of Texas during the early 20th century that began with the discovery of a large petroleum reserve near Beaumont, Texas. The find was unprecedented in its size (worldwide) and ushered in an age of rapid regional development and industrialization that has few parallels in U.S. history. Texas quickly became one of the leading oil producing states in the U.S., along with Oklahoma and California; soon the nation overtook the Russian Empire as the top producer of petroleum. By 1940 Texas had come to dominate U.S. production. Some historians even define the beginning of the world's Oil Age as the beginning of this era in Texas.The major petroleum strikes that began the rapid growth in petroleum exploration and speculation occurred in Southeast Texas, but soon reserves were found across Texas and wells were constructed in North Texas, East Texas, and the Permian Basin in West Texas. Although limited reserves of oil had been struck during the 19th century, the strike at Spindletop near Beaumont in 1901 gained national attention, spurring exploration and development that continued through the 1920s and beyond. Spindletop and the Joiner strike in East Texas, at the outset of the Great Depression, were the key strikes that launched this era of change in the state.

This period had a transformative effect on Texas. At the turn of the century, the state was predominantly rural with no large cities. By the end of World War II, the state was heavily industrialized, and the populations of Texas cities had broken into the top 20 nationally. The city of Houston was among the greatest beneficiaries of the boom, and the Houston area became home to the largest concentration of refineries and petrochemical plants in the world. The city grew from a small commercial center in 1900 to one of the largest cities in the United States during the decades following the era. This period, however, changed all of Texas' commercial centers (and developed the Beaumont/Port Arthur area, where the boom began).

H. Roy Cullen, H. L. Hunt, Sid W. Richardson, and Clint Murchison were the four most influential businessmen during this era. These men became among the wealthiest and most politically powerful in the state and the nation.

The United Kingdom and the Iraqi oil industry

Iraq's large oil reserves have attracted attention from the United Kingdom, a country with a high demand for (and a low supply of) oil. British involvement in the Iraqi oil industry dates to World War I. Political influence in the region has given the UK the power to establish a number of oil companies in Iraq.

Virginia Energy Independence Alliance

The Virginia Energy Independence Alliance is a broad-based coalition of consumers, industries, associations and academia from across Virginia that is committed to promoting the development and use of alternatives to foreign energy in Virginia. The Alliance strives to raise awareness of America’s need for energy independence, to work with local and state governments to encourage the pursuit of domestic energy sources, and to promote Virginia as a leader in the development and use of domestic energy.

Yates Oil Field

The Yates Oil Field is a giant oil field in the Permian Basin of west Texas. Primarily in extreme southeastern Pecos County, it also stretches under the Pecos River and partially into Crockett County. Iraan, on the Pecos River and directly adjacent to the field, is the nearest town. The field has produced more than one billion barrels of oil, making it one of the largest in the United States, and in 1998 it remains productive, though at a diminished rate. Since fracturing has exploded in the Permian Basin, the Yates field has seen very heavy activity in the past 3 years. Estimated recoverable reserves are still approximately one billion barrels, which represents approximately 50% of the original oil in place (OOIP).

Petroleum industry in the Middle East

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