How much money did Iraq earn from oil in 2022, the challenges it is facing

Iraq's oil revenue in 2022 topped $115 billion, according to preliminary figures released by the oil ministry on Tuesday, a four-year high after a collapse in prices during the coronavirus pandemic.

Oil production accounts for about 90 percent of Baghdad's income, and the country is the second largest producer within the Organization of the Petroleum Exporting Countries (OPEC).

"Total crude oil export earnings for 2022 reach more than $115 billion," Oil Minister Hayan Abdel-Ghani said in a statement.

The country exported more than 1.2 billion barrels in 2022, an average of 3.3 million barrels per day, according to the statement.

These earnings follow a surge in prices following the Russian invasion of Ukraine in February 2022 and the subsequent reluctance of OPEC producers to increase output.

In October, the oil cartel decided to cut production quotas to maintain price levels, with a cut of "two million barrels per day".

With an almost total reliance on oil revenues to finance state spending, Iraq was hit by a price collapse at the start of the coronavirus pandemic.

From $78.5 billion in 2019, oil revenues fell to $42 billion in 2020, according to official statistics. By 2021 they had risen again to $75.6 billion.

After decades of conflict, Iraq faces chronic economic challenges and requires significant investment in infrastructure projects, making oil revenues and barrel prices crucial data for preparing Baghdad's annual budgets.

Despite its oil wealth, Iraq, home to 42 million people, faces an energy crisis that sees regular power outages and harmful power surges, known as load shedding.

Neighboring Iran supplies the country with a third of its gas and electricity, but deliveries are often interrupted, further exacerbating already daily cases of load shedding.

Last month the World Bank warned that Iraq, battered by the impacts of climate change from drought and water shortages to rising temperatures, must diversify its economy and invest $233 billion by 2040 to launch "a path green growth".

Source: France 24