Open figure viewer
Significance
In early May, a sixth licensing round elicited minimal interest. However, hitherto slow-moving projects to capture and use associated gas burnt at oilfields are accelerating. That is due to US focus on lessening Iraq's reliance on what are already unreliable and costly imports from Iran.
Impacts
The Arab Gulf states could increase investment in Iraq's gas sector to counterbalance Iranian influence.
Increased generation of heavily subsidised electricity will be the main driver of rising gas demand.
Future licensing rounds will likely offer improved contractual terms for investment in gas-prospective acreage
Keywords:
Iraq,
ME/NAF,
Iran,
United States,
economy,
industry,
international relations,
energy,
foreign investment,
foreign policy,
gas,
government,
investment,
oil,
reform,
regional,
Fossil fuels,
Gas
© Oxford Analytica 2024. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2024
You do not currently have access to this content.
