Ministry of Oil

Ministry of Oil Frequently asked questions Q: How long will it take to meet the domestic oil needs of the Iraqi people? A: To meet the domestic needs, product supplies are being supplemented through imported products (i.e., gasoline and LPG) from surrounding countries, specifically Turkey, Kuwait, and Jordan. The Ministry of Oil and ORHA are working aggressively on this and product is flowing into the country. Bringing refineries up to a higher level of utilization and production will help alleviate gasoline and LPG shortages in the short run. Two refineries are expected to substantially boost their output in the next week. Gas associated with crude oil production is necessary to substantially improve the supply picture for LPG. This highlights the importance of Iraqis having the ability to sell substantial quantities of crude oil in the open market soon. Q: How important is and what affect will lifting the UN sanctions have on the oil industry? A: Lifting UN sanctions is an extremely important step in helping the Iraqi people restore a normal life. Crude oil sales are important, not only to providing the financial means necessary for reconstruction and humanitarian assistance, they are essential to increasing the overall efficiency of Iraq’s oil operation. It will be impossible for Iraq to meet its domestic needs from its own resources until substantial oil exports commence. Q: What are the principle problems facing the oil sector today? A: As with so many facets of life in Iraq, security is of utmost concern. The oil sector is working hard to build up its internal security capabilities, acting in concert with Coalition forces. Providing adequate security is essential, protect vital facilities and distribute products to the people. While progress is being made, much remains to be done. Q: When will the long lines for consumer gasoline be eliminated? A: The Ministry of Oil is making significant progress and believes it should be possible to alleviate the most serious shortages by the end of the month. Hopefully, we will see significant improvements in conditions before that. Q: When will the Ministry of Oil "stand up"and be functioning on its own? A: Iraq has excellent leadership in its new chief executive officer Thamir Al-Ghadhban. The oil industry also has many other able professionals working hard within the Ministry and subsidiary companies. They are fully capable to restore Iraq to its full oil production potential. Although they remain hampered by security concerns and inadequate communication capabilities, they are enjoying success in re-establishing the capabilities of this important economic sector.