Economic Insight – Baghdad
Oil expert Kovand Sherwani affirmed that Iraq possesses substantial natural gas reserves sufficient to last for a century, highlighting a significant economic loss attributed to flaring practices.
During a discussion, Sherwani disclosed that Iraq has approximately 127 trillion cubic feet of natural gas reserves, ranking the country 11th globally in terms of reserves. Despite this, Iraq continues to import natural gas, incurring a loss of around 10 billion cubic meters annually due to inefficient management and oversight failures.
He emphasized that the value of the natural gas currently being flared is estimated at 100 billion dollars per year, a figure that could potentially rise due to the ongoing increases in natural gas prices caused by geopolitical factors, including the conflict between Russia and Ukraine since February 2022.
Sherwani articulated that Iraq has an immense opportunity to leverage its gas reserves not only for self-sufficiency but also for potential export, which could generate significant revenue streams complementary to crude oil income.
He further explained that, unlike oil, natural gas is not subject to similar regulatory constraints on exportation and is poised to become a vital future energy resource. Iraq must prepare for a transition to a post-oil era and align with environmental commitments.
Notably, international climate agreements target 2050 for achieving net-zero carbon emissions, aiming to curb fuel flaring and the release of carbon gases across industrial and agricultural sectors.
Sherwani reiterated the urgency for Iraq to address rising domestic gas demands annually while adhering to international environmental standards. He noted that Iraq does not significantly contribute to global environmental pollution and climate changes, which increasingly impact agricultural and livestock outputs, as well as public health.
