Petroleum

Iraq has some of the largest oil reserves in the world. It has over 143 billion barrels of proven reserves. As of 2012, Iraq produces 3.4 million barrels of oil per day from the 2,000 oil well already drilled. In the 1970s, Iraq produced slightly more barrels per day, but the sanctions imposed against the country in 1990 following their invasion of Kuwait significantly affected the oil sector. It was prohibited from exporting oil until 1996, leading to an 85% decline in the output. Although the sanction was lifted in 2003, the ongoing conflicts have hampered the development of oil resource in Iraq. The decades of war and unrest has brought about uncertainty about the oil reserves in the country. The US Department of Energy estimates that Iraq has 112 billion barrels while the US Geology Survey estimates 78 billion barrels.