Iraq's Trade Buddies
Potential Oil Exports To U.S. Bond America & Iraq As Trade Partners
Much of Iraq's potential as a world oil export leader is unrealized. As George Bush's war rages on, America's trade deficit with Iraq continues to rise.
Home to 11% of the world's proven oil reserves, Iraq's 115 billion barrels of crude is second only to those of Saudi Arabia.
Iraq's oil exports accounted for 84% of that country's total exports in 2006. Non-fuel petroleum products generated about 8% of 2006 Iraqi exports, while food and live animals (cattle, sheep, poultry) shipped from Iraq comprised 5%.
Only 20% of Iraq's oil fields have been developed. An even smaller percentage of Iraq's natural gas reserves have been brought into production.
In 2006, Iraq shipped US$32.2 billion worth of exports to the rest of the world while imports amounted to $20.8 billion. Despite a prolonged war and attacks on oil pipelines that further restrict export volumes, Iraq's trade surplus was some $11.4 billion in 2006.
Top Countries For Iraqi Exports (2006)
The following list shows the top four customers for Iraq's exports, which totalled an estimated US$32.2 billion in 2006.
- United States ... US$16 billion (49.7% of total Iraqi exports)
- Italy ... $3.4 billion (10.7%)
- Spain ... $2 billion (6.3%)
- Canada ... $1.8 billion (5.6%)
The above trade partners consumed over 70% of Iraq's total exports.
Top Countries From Which Iraq Imports (2006)
Iraq imported some US$20.8 billion worth of commodities, principally food, medicine and manufactured goods.
- Turkey ... $4.9 billion (23.4% of total Iraqi imports)
- Syria ... $4.8 billion (23.1%)
- United States ... $2.4 billion (11.7%)
- Jordan ... $1.3 billion (6.3%)
Iraq's top four import partners generated over 64% of its total imports.
According to the U.S. Census Bureau, America's trade defict with Iraq totalled $10.1 billion in 2006. America's deficit with Iraq is 135% higher than in April 2003 when the US-led coalition declared military victory.
Iraq Oil Export Potential
Currently, Iraq's oil output hovers around 2.1 million barrels per day (mbpd). Energy policy specialist Lawrence Kumins writes that a post-Saddam Iraq could rival Saudi Arabia's 10.5 mbpd provided that Iraq is at peace, is led by a stable regime and optimizes its long-term petroleum prospects.
According to the Iraq Country Analysis Brief (Dec. 2005), Iraq offers one of the best long-term prospects for international oil trade. This is because Iraq's wells average several thousand barrels of oil per day, while wells in the U.S. average only 10. In addition, Iraq's costs for bringing oil into full production are among the world's lowest.
Iraq has had no oil exploration for many years. Experts suggest that Iraq's rich hydrocarbon-bearing geology easily supports increased oil production beyond current estimates with the drilling of additional wells, infrastructure improvements and effective oil drilling methods.
If Iraq realizes these operational efficiencies and once its northern pipelines again flow securely, Kurins estimates that Iraq can multiply its annual oil exports up to 150% more to some US$80 billion.
Sources For This Article
This article presents independent calculations and insights based on data drawn from source material in the CIA's World Factbook. This article also focuses on the following report: U.S. Census Bureau, Foreign Trade Statistics, Trade in Goods (Imports, Exports and Trade Balance with Iraq) by Lawrence Kumins
