Iraq's first shipment of gas condensate indeed represents progress toward better exploiting the country's gas resources. Expanding that effort, particularly if export-ready volumes are increased in the future, will open new revenue streams that the government sorely needs in light of falling oil prices, rising deficits and reliance on foreign loans to cover deficits.
Increasing Iraq's gas production requires a similar increase in oil production, and the feasibility of the latter cannot be accurately determined. Moreover, the unreliable security situation in northern and western Iraq has seriously hindered efforts to complete the development of free gas fields there, such as at the Akaz gas field in Anbar and the Mansuriya field in Diyala.
Still, the responsibility for drafting an effective, sustainable and more transparent energy policy rests squarely on the shoulders of Iraqi officials. Gas exportation, despite the associated potential gains, may not always be the best solution, particularly if the sector can be exploited locally to diversify the economy and address the growing need for electric power.
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