As the world eagerly awaits COP 28, a significant United Nations and UAE summit dedicated to addressing, adapting, and allocating funds for mitigating natural disasters and climate change impacts on Earth. Global markets stand in anticipation of decisions stemming from the postponed meeting of OPEC and OPEC Plus.
On November 14, 2023, the Iraqi Ministry of Finance published a financial report detailing expenditures and revenues over the past nine months. Notably, no dinars were allocated to the Kurdistan Region; instead, funds were sourced from loans and banks. The report indicates total expenditures of 78.25 trillion dinars and combined oil and non-oil revenues of 95.84 trillion dinars, resulting in a surplus of 17.59 trillion dinars compared to expenditures
We will delve into the intricacies of importing gas from Turkmenistan, the commitment made by Sudani, and the destiny of multibillion-dollar projects designed to eradicate gas flaring and combustion in the oil and gas fields of Iraq and the Kurdistan Region.
As per the central bank's data, the gap between the market and central bank exchange rates has traditionally fallen within the range of 10 to 50 dinars per dollar. However, since the start of this year, this difference has significantly widened, often exceeding 100 dinars and occasionally reaching as high as 300 dinars. These disparities starkly contrast with standard “ financial and banking regulations”, which typically consider a range of 1 to 5 thousand Iraqi dinars or 1% to 3% as normal.
Another pivotal aspect of these negotiations pertains to the complex issue of oil compensation, how to remunerate companies for each barrel of oil produced. In the 2023 budget, the Kurdistan Region has committed to delivering 400,000 barrels of oil daily to SOMO. However, the method of covering the production and transportation costs remains ambiguous.
The growth of industries in Iraq is substantial. The oil sector alone daily consumes 388 million liters, with certain fields sourcing water from the Euphrates River. The cement sector's annual water consumption, largely from rivers and wells, reaches 10.2 billion liters. Steam electricity production uses 114 million liters, and the steel and iron industries require 2.8 billion liters of water annually.
Presently, the combined daily production from 13 gas and oil fields, including the Khor Mor oil and gas field, which produces both condensate and gas, stands at an impressive average of 220,000 barrels. These resources are exported to domestic refineries and cater to the domestic market's demand.
In accordance with a comprehensive report conducted by the Japan International Cooperation Agency, specifically the Yachiyo Engineering Company, pertaining to waste data analysis in Iraq, with a particular emphasis on both the capital cities and the Basra province, as of 2022, it has been clarified that each individual in Iraq generates an approximate daily waste output of 1.36 kilograms. This figure significantly surpasses the global average waste generation per capita, which stands at 0.74 kilograms. Consequently, the cumulative daily waste collection in Iraq amounts to an alarming 20,000 tons, while the Kurdistan Region contributes an additional 6,900 tons to this considerable waste burden.
In 2021, Iraq's carbon dioxide emissions surged to a staggering 177.8 million tons, marking an alarming increase of nearly sevenfold compared to a mere 27.1 million tons emitted over the previous five decades.
For instance, a substantial gap of 1 trillion 258 billion dinars is evident in the total expenditures alone. This discrepancy has been identified by multiple entities, including the Ministry of Finance, the Parliamentary Finance Committee, the Iraqi High Economic Council, and 327 Members of Parliament (pp. 60-63). What adds an intriguing dimension to this issue is the variance in expenditures for Anbar province, a matter that should have garnered the attention of the speaker and Sunni members within the finance committee. While the allocated budget for Anbar province was originally set at 466 billion dinars, the actual sum tallies up to just 436 billion dinars. Thus, this stark contrast amounts to a substantial 30 billion dinars in the collection of the allocated budget for this province!
According to GFW, Iraq will lose 137 hectares[1] of wooded land between 2000 and 2022, 22 hectares due to fire alone and the remaining 115 hectares due to various reasons. The year with the highest loss of trees and green space was in 2003 when 7 hectares of wooded land were destroyed by fire.
The development and exploration of the Durra gas field was delayed each time due to a problem, but this time Saudi and Kuwaiti officials said that the matter is serious, although Iran announced its seriousness in owning the field and starting work in its name. However, the success of the strategy is any party and how to determine and how to develop the gas field and the prospects for Saudi-Iranian relations in the meantime will have an impact.
The North Atlantic Treat y Organization (NATO) Global Warming Modeling predicts that "that over the next decade in Iraq, temperatures will rise by 1°C in the short term and 2°C in the medium and long term, while the whole world is now trying not to rise by 0.5°C." .
The Oil Minister indicated that Turkey's decision to continue suspending oil exports from the Kurdistan Region and Kirkuk is not connected to purported technical problems with oil pipelines that followed the earthquake
The article explains the financial commitments of the Kurdistan Region according to the federal budget for 2004 and 2022, as well as the financial debts that the KRG owes to the oil companies.
