Iraq Energy Information

Iraq Energy Research

- Iraq's Energy & Climate Policy Framework: Iraq aims for 33% renewable energy in its power mix by 2030, with the Ministry of Electricity overseeing sector modernisation. The oil-dependent economy is diversifying under the Integrated National Energy Strategy (INES), while OPEC+ agreements cap production. Renewable targets face challenges, and climate pledges include reducing emissions and investing in green energy.

- Iraq's Energy Companies: Iraq's energy sector is state-dominated, with INOC overseeing oil companies and the Ministry of Electricity managing power generation, transmission, and distribution. Key oil fields are operated by international firms like BP, Eni, and Lukoil, while gas production is handled by regional state-owned companies. Privatisation efforts are underway in the electricity sector.

- Iraq's Energy Supply & Demand: Iraq's energy sector relies heavily on oil (75% of consumption) and gas (54% of power mix), with significant reserves. Electricity generation has grown rapidly, but blackouts persist. Oil production is constrained by OPEC quotas, while gas flaring remains high. The country imports gas to meet demand and aims to expand export capacity. GHG emissions are rising, driven by fuel combustion and methane leaks.

- Iraq's Energy Use & Price by Sector: Oil dominates energy use (69%), but gas and electricity shares are rising. Transport is the largest consumer (48%), with industry and residential sectors following. Energy demand has grown rapidly since 2016, with significant price fluctuations.

- Iraq's Issues & Prospects: Iraq plans to double oil production to 8mb/d by 2027 and expand energy infrastructure, including nuclear, gas, and solar projects, with significant investments totalling USUSD 620bn by 2030. Key initiatives involve increasing power capacity to 44GW by 2025, developing 11GW of nuclear energy, and enhancing regional electricity interconnections.

Iraq Total Energy Production & Consumption

Total energy consumption has increased rapidly since 2015 (+6% per year), reaching 64 Mtoe in 2024. despite a significant dip (-10%) in 2020.

Total energy consumption per capita amounted to 1.4 toe/capita in 2024.

Graph: Primary Consumption Trends by Energy Source

Source: Iraq energy report

Interactive Chart Iraq Total Energy Production & Consumption

Source: Global Energy & CO₂ data

Iraq Oil Production & Consumption

Constrained by OPEC quotas, oil production decreased by 2% and 4% in 2024 and 2023, respectively. It had previously rebounded by 10% in 2022 to 220 Mt, after remaining stable in 2021 and dropping by 14% in 2020 due to the COVID-19 pandemic. It had previously been increasing rapidly since 2010 (+8%/year), with a major boost in 2016 (+27%). This was mainly due to increased output at fields in southern Iraq and in the Iraqi Kurdistan Region, which more than offset disrupted volumes in the north.

Source: Iraq energy report

Interactive Chart Iraq Crude Oil Production & Consumption

Source: Global Energy & CO₂ data

Interactive Chart Iraq Refined Oil Products Production & Consumption

Source: Global Energy & CO₂ data

Iraq Natural Gas Production & Consumption

Marketed gas production reached 11.3 bcm in 2024, its highest level since 2019; it grew by 30% in 2021 after a 36% decrease in 2020. It had increased very rapidly from 2015 to 2019, by 14%/year. The entire production is used domestically, mainly in the power sector.

According to the World Bank, Iraq is the third largest gas flaring country after Russia and Iran. Over the last decade, flaring steadily increased from 13 bcm in 2012 to 18 bcm in 2024 (i.e. around 12% of total global flaring).

Source: Iraq energy report

Interactive Chart Iraq Gas Production & Consumption

Source: Global Energy & CO₂ data

Iraq Renewable in % Electricity Production

In 2021, the MoE announced the country's ambition to raise the capacity of clean energy to 12 GW by 2030, corresponding to 33% of the power capacity mix thanks to a sharp increase in solar capacity (5.3% in 2024, mostly hydro).

In 2017, the MoE launched the Renewable Energy Investment Program with a target of 2 695 MW of solar for 2020. The target was far from met as only around 40 MW was reached in 2020 (still 40 MW in 2024).

Source: Iraq energy report

Interactive Chart Iraq Share of Renewables in Electricity Production (incl hydro)

Source: Global Energy & CO₂ data

Iraq GHG emissions and CO₂ emissions

In its NDC, Iraq aims to cut CO2 emissions from industry by 1-2% and invest US$100bn in green economy for both private and public sectors by 2030. In addition, the NDC identified mitigation measures for the energy sector, such as reducing flaring at the oil and gas fields, switching from liquid fuels to natural gas, improving energy efficiency, and developing renewables. The initial target set in the INDC (2015) of reducing GHG emissions by up to 14% below a BaU projection in 2035 has been removed.

Source: Iraq energy report

Interactive Chart Iraq CO₂ emissions

Source: Global Energy & CO₂ data