Iraq loses 15% of its financial imports due to climate changes and the Glasgow Agreement

oil field
 
12/16/2021

Economy News - Baghdad

A report by Verisk Maplecroft, a risk consultancy, has raised concerns that large amounts of oil and gas reserves in the world are at risk due to rising waves, storms, floods, and a sharp rise in temperatures caused by climate change.

Among these countries that will be affected are Iraq, Saudi Arabia and Nigeria, which are the leading countries in the world in exporting oil and gas.

In this regard, the oil expert Alaa Al-Asadi says, “Climate changes oblige oil-buying countries to reduce oil purchases,” adding that “the COP26 conference that was held in Glasgow about a month ago, in which Iraq participated, was signed by the President of the Republic, Barham Salih, which Oil-buying countries are obligated to reduce oil purchases by 15%, and this will affect Iraq.

Al-Asadi explained that "fossil fuels cause air pollution, and they want to reduce pollution in order to reduce the temperature in the world," stressing that "side effects will occur on the Iraqi economy, because the country depends 93% on oil."

The economist pointed out that "European, Western and Southeast Asian countries have agreed to reduce oil imports by 15% until 2030 in the transport sector, so it is likely that our imports will decrease by 15%," adding that "the transport sector consumes 60% of the world's oil, And 40% for giant industries and facilities," noting that "these countries will replace cars that run on fuel, with cars that run on electric power."

A report by Verisk Maplecroft noted that about 600 billion barrels, or 40% of the world's recoverable oil and gas reserves, could be affected by severe weather.

About 10% of the world's extractable commercial reserves are located in areas classified by the consulting firm as "high risk", while about a third are located in areas considered "high risk".

The Iraqi Oil Ministry recently announced that Iraq's total oil exports increased to 3.12 million barrels per day in October from 3.081 million barrels per day in the previous month.

The ministry said in a statement that exports from Basra ports in the south amounted to 3.012 million barrels per day last October.

Source: Rudaw

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