How Corona Virus Impact to Oil Sector in Iraq

oil sector in iraq due to covid 19

It’s a brand new beginning for Iraq. Becoming the country with an abundance of misfortune for about 40 years, since now, any dictatorship, war invasion, or even sanction had left this country.

Nowadays, Iraq looks like a promising place for any business investments, especially in the oil sector.

Furthermore, Due to as Energy Consulting in Iraq, the country has high potential rewards for any investors. 

But in the midst of pandemic due to COVID-19, investing in any countries including Iraq doesn’t seem simply matter.

Here, any investors should consider any possibilities that happen in their business. Therefore, looking for the investment strategy due to COVID-19 especially in Iraq would be essential.

Overview of Iraq Oil Sector Market

For the past 5 years, Iraq has experienced a growth in oil production. Iraq has produced about more than two million b/d in 2010.

What is more, in 2015 or in the 3rd quarter, the production has been recorded as the highest one which reached 4.4 million b/d.

But it’s not actually seemed like a good condition for an investor in the oil sector due to security issues and some of the financial troubles.

With about 140 billion barrels, it’s not surprising that the production of the oil sector in Iraq recorded as the fifth largest one in the world.

Furthermore, as its membership in OPEC, Iraq became the 2nd largest producer after Saudi Arabia.

But Iraq still deals with some of the issues including a tense of low oil prices, the impact of the war that happened in a decade, the conflict between political leaders, and the bad condition for any investments. 

Challenges Any Oil Investors May Face When Investing in Iraq’s Oil Market

Based on market research Iraq, there still remains a challenge for any investors to do business in Iraq’s oil sector.

It’s affected by the instability that happens in oil production due to several oil companies being a target of armed militant groups.

Those oil companies are separated in several locations such as the Basra region which are so extremely risky to be threatened by the terrorist with its impunity action.

COVID-19 and Its Impact to Iraq Oil Market

Due to COVID-19 happening this time in over a hundred countries, the oil sector will be likely on hold.

It’s because there is something setback to limit the production and change it to the COVID-19 recovery and deliver it to another sector such as any informal economy.

Though the oil sector has become a huge contributor to the country’s market, the COVID-19 outbreak, however, becomes an obstacle to developing the oil sector.

On the other hand, COVID-19 also gives an impact on any country which implemented lockdown.

It affects mostly the oil demand on a global scale due to around 60% of global transportation needs it. It can be seen as well as China as the first country that ruled lockdown decides to cut off the contraction in the oil sector.

The decline of oil demand is moreover expected up until April with more than 20million barrels per day.

Iraq will likely be a great place to invest, especially in the oil sector. But the COVID-19 may be challenging for any investors who excited to do business in this country. However, it’s essential to find a strategy due to this obstacle by learning a market research Iraq


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