Saturday Afternoon Iraq Economic News Highlights 8-13-22
Saturday Afternoon Iraq Economic News Highlights 8-13-22
Opec: Iraq's Oil Production Rose To 4.496 Per Day
Politician Last Update 08/13/2022 | 10:25 AM The Information/Baghdad: The Organization of the Petroleum Exporting Countries decided to increase oil supplies for the month of July from seven countries, including Iraq, noting that Iraq's production rose to 4.496 million barrels per day.
The oil production of the 13 member states of the Organization of Petroleum Exporting Countries increased by 216,000 barrels per day during the month of July, reaching 28.896 million barrels per day, supported by increased supplies from seven countries, including Iraq.
According to the monthly report of the Organization of the Petroleum Exporting Countries, “the largest increases came from Saudi Arabia, as its oil production rose by 158,000 barrels per day, to reach 10.714 million barrels per day, followed by the UAE, which recorded an increase of 48,000 barrels per day, and then Kuwait, which recorded an increase of 47,000 barrels per day.” “.
And he added, "Iraq increased its production by 30 thousand barrels per day to reach 4,496 million barrels per day," noting that "the increase in Iraq's oil production rose by 447 thousand barrels per day from the same period in 2021."
She added that "the increase also came from Gabon, by 14,000 barrels per day, and the rest of the increases also came from Equatorial Guinea's oil by 13,000 barrels per day and Nigeria by 6 thousand barrels per day."
The report also indicates that the largest drop came from Venezuela, where shipments decreased by 49,000 barrels per day, bringing its production to 661,000 barrels per day, followed by Angola by 19 thousand barrels per day, then Ian and Libya by 11 thousand barrels per day each. Congo by 6 thousand barrels per day, and finally Algeria by 3 thousand barrels per day. https://almaalomah.me/2022/08/13/613474/
Economic Treatment In Light Of Political And Oil Fluctuations
Articles Dr.. Haitham Hamid Mutlaq Al-Mansour
The economic climate in Iraq is witnessing dramatic changes, in addition to the rise in financial indicators caused by the rise in oil prices at a rate of nearly 40% compared to last year, and expectations that the country’s cash reserves will rise to more than 90 billion dollars by the end of this year, and an increase in the rate of growth in the gross domestic product to 9.5%, the fiscal policy is still restricted by the government spending ratio of 1/12, which indicates that the financial boom was not truly reflected on the reality of macroeconomic policy and the reality of citizens, as inflation is witnessing a significant rise in its annual rates in addition to the rise in unemployment rates, which amounted to In its last statistics in 2021, it reached an annual rate of 13.8%.
The political developments in the country and their repercussions on the economy constitute a major obstacle to approving the budget for the year 2021-2022, including the organization and classification of oil revenues to be spent on its consumption and investment resources, which is an important source of demand, revitalizing the economy, the income and spending cycle, and creating job opportunities in a way that reduces unemployment rates and keeps the economy away.
Iraqi about the specter of the phenomenon of stagflation, which it is suffering from recently, and for many reasons, some of them external and internal, the first is related to the Ukrainian war and the economic reaction policies that reinforced stagflation in the United States and the European Union, and since Iraq constitutes in its total foreign expenditures a net importer of goods and services It is natural for inflation to move to it with the lists of imports.
As for the second, besides the lack of approval of the budget and the repercussions of the restricted spending at a rate of 1/12, the internal debt management policies, despite their purely economic objectives, the devaluation of the currencyNationalism and the accompanying reluctance in many compensatory measures for the groups affected by it, took its take from the reality of the general level of prices and the real drop in the value of individuals' incomes, which were not clearly targeted.
Therefore, the two important variables in terms of dealing with the economy are receding in the formation of the government first, the approval of the budget and the initiation of organizing the financial returns according to the budget items and its allocations. Secondly, the management of financial returns in an efficient economic manner through the creation of a sovereign fund to invest and develop oil surpluses for the future may constitute a strategic variable In terms of economic treatment.
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Oil Announces Thwarting The Smuggling Of 24 Thousand Liters Of Its Products
Economic Last Update 08/12/2022 | 10:15 PM Information/Baghdad...Today, Friday, the Ministry of Oil announced that it had thwarted the smuggling of 24,000 liters of its products.
And the ministry’s media said in a statement received by the “Information” agency, that “as part of the Ministry of Oil’s efforts to eliminate the smuggling of petroleum products, the security services, in cooperation with the inspection committees of the Ministry of Oil, seized a silo cement vehicle carrying a product intended for smuggling in a quantity of 24 thousand liters.”
He added, "The materials and the driver were seized and handed over to the concerned authorities according to a fundamental seizure report." Ended / 25 https://almaalomah.me/2022/08/12/613442/
Iran Begins Construction Of Largest Solar Power Plant
ECONOMIC 08/13/2022 | 9:48 AM Information/Baghdad.. Iran has started the process of building the largest solar power plant with a capacity of 300 megawatts in the Rafsanjan Special Economic Zone of Kerman Province, southeast of Iran.
The public relations of the Rafsanjan Special Economic Zone announced the start of a 300 megawatt solar power plant project in the Special Economic Zone of this city, in the presence of the CEO of the National Iranian Copper Industries Company and representatives of the people of Rafsanjan and Anar in the Islamic Consultative Assembly.
Ali Fahimi, Director of Construction Affairs of the Power Plants of the Sargshmeh Copper Complex in Rafsanjan, said: This solar power plant will be built in line with the commitment of the National Iranian Copper Industries Company and the Sargseh Copper Complex to the cause of social responsibilities and environmental protection.
He added: This station will be built in two phases, the first phase will reach 25 megawatts and the additional stage will reach 300 megawatts.
Fahimi indicated that this plant is expected to be able to launch and connect to the national grid within 18 to 24 months from the time the power plant contractor is selected. https://almaalomah.me/2022/08/13/613463/
Iraq's Electricity Crisis: The Supply Challenge Between Iran And The Gulf Connection
Arab economy Baghdad Ahmed Eid August 13, 2022 A power station in southern Iraq (Hussein Faleh/AFP)
The problem of electric power is one of the biggest problems facing the Iraqi state for decades, as successive governments have been unable to solve it despite the existence of sufficient financial budgets to build electric power plants, in addition to the availability of raw materials needed to operate these plants, including fuel and natural gas.
Iraqi families, especially during the summer, face the increased need for energy, darkness and long power cuts in conjunction with a significant rise in temperatures. Iraq has been importing electricity and gas from Iran for more than 16 years at prices that exceed the world average, with amounts amounting to more than two billion dollars annually, while burning its natural gas and gas associated with oil extraction operations in the atmosphere.
For the fourth year in a row, a World Bank report ranked Iraq as the second largest country in the world by the amount of gas it burns in the atmosphere after Russia. In addition to importing Iranian gas, Iraq also imports 1,200 megawatts of electricity through four transmission lines. However, the failure to produce gas locally to operate power stations caused large quantities of it to be wasted, and the dependence on imports from Iran resulted in long hours of rationing, which aggravated the suffering of the Iraqi citizen, especially during the summer.
Iranian Non-Compliance
The Iraqi Ministry of Electricity justified the reasons for the decline in the hours of supplying electricity to citizens with crises and emergency symptoms, and talked about efforts to address them, while confirming that Iranian gas did not reach the agreed levels until the present time.
A spokesman for the Ministry of Electricity, Ahmed Moussa, told Al-Araby Al-Jadeed that the Iraqi electrical system witnessed many problems during the past few days, and the engineering departments in the ministry quickly addressed them, and pointed out that the Ministry's Crisis Cell mobilized all its efforts for maintenance around the clock, except The situation is not ideal in terms of processing hours.
Moussa justified the reason for reducing the supply hours in the recent period because the Iranian side did not abide by the agreement concluded with it on the supply of gas, because the agreement with the Iranian side stipulates that Iraq will get 55 million cubic meters of gas, but the current amount is only 45 million cubic meters. Emphasizing that the actual need at the present time is estimated at 60 million cubic meters.
Iraq's Electricity Crisis: The Supply Challenge between Iran and the Gulf Connection
Energy Iraq decides to continue supplying Lebanon with electricity fuel
He added that his ministry seeks to diversify energy sources and establish electrical interconnection projects with neighboring countries, explaining that work is continuing to complete the joint interconnection procedures with Turkey and the Hashemite Kingdom of Jordan, and discuss the issue in detail with the Gulf Interconnection Authority and the Kingdom of Saudi Arabia.
And Moussa indicated that after negotiations that lasted two years, the electrical connection agreement was officially signed with the Saudi side, stipulating the establishment of a joint connection between the two countries, determining the paths of the lines and studying the connection points, as well as defining the mechanisms of energy transmission, to achieve high stability in electricity supply by providing more than one source for energy.
Deep Problem
For his part, researcher in energy affairs, Alaa Al-Dulaimi, said that the electrical connection is a new beginning for investment in the field of energy, and enhances the economic ability to increase financial revenues for the producing countries.
In his speech to Al-Araby Al-Jadeed, Al-Dulaimi explained that the electricity problem in Iraq is a rooted problem, which began to worsen since the second Gulf War, and extended throughout the years of the siege that the country experienced at the end of the last century, but throughout the years that followed the American invasion of Iraq and the large sums of money that were spent It has not seen any progress for political reasons.
He added that Iraq owns electric power plants, but they are almost stopped or operating at specific hours, due to the lack of the necessary fuel, as a result of Iran's cessation of exporting the quantities of gas needed to operate the stations, in addition to the deterioration of a lot of infrastructure in Iraqi facilities.
Al-Dulaimi indicated that the electrical connection with neighboring countries is an important step in the right direction, especially since Iraq's contract with the Iranian side ends in 2024, which provides an opportunity to end the process of importing Iranian gas that is sold to Baghdad at prices higher than international prices, but the Iranian activity towards electricity Iraq is increasing every time Iraq moves towards diversifying its sources of electricity.
Iraq's Electricity Crisis: The Supply Challenge between Iran and the Gulf Connection
Energy Iraq decides to continue supplying Lebanon with electricity fuel
He revealed that the establishment of an Iranian plant in Iraq with a capacity of 3,642 megawatts would make the country need an additional gas estimated at 25 million cubic meters, which would raise the value of the current import of Iranian gas from 50 to 75 million cubic meters, with an estimated increase of 50 percent. Iranian media sources announced that Iranian companies are working to establish an electrical station to generate 3,642 megawatts of energy in Iraq.
She stated that the production of this amount of energy is 7 times more than Saudi Arabia's program to supply Iraq with electricity during the next three years, and that it is working to establish electric power production stations. She added that Iranian companies have opened several units for the production of electric power in Iraq, namely Al-Sadr, Al-Haidariya, Najaf and Al-Rumaila stations, and that the cooperation between Iran and Iraq in the field of electricity was not limited to the establishment of electric power production plants only, but that the Iranian side participates in the field of maintenance of Iraqi stations. also.
Investment Biases
The researcher in Iraqi economic affairs, Nabil Jabbar, considered that Iran has political and economic goals to increase its cooperation with Iraq in the energy sector, and the involvement of Iranian companies in contracts for the construction of power stations keeps Iraq forced to import Iranian gas, in addition to other partnerships related to the maintenance of electrical stations that will not stop there.
Jabbar added to Al-Araby Al-Jadeed that Iran's endeavor to establish new power stations in Iraq through investment aims to perpetuate Iraq's dependence on importing Iranian gas and Iraq's continued dependence on energy supplies within a special diplomacy linking Iraq with Iran.
Jabbar revealed that there are observations on the investment contracts that the Ministry of Electricity conducts with companies investing in energy production, which proved the bias of those contracts in favor of investors, expressing his fear that the Ministry of Electricity will continue to grant other investment contracts in the same context, which would expose public money to waste and increase levels of corruption. . LINK