Energy

Iraq could be poised for a dramatic transformation in which it finally escapes the political and technical constraints that have kept it producing less than 4 percent of the world’s oil, writes Meghan L. O'Sullivan. Should Iraq meet its ambitions to bring nearly 10 million more barrels of oil on line by 2017, it would constitute the largest ever capacity increase in the history of the oil industry. Even half this much would represent a massive achievement.

This article examines the legal and political impediments to the Kurdish Regional Government's (KRG) exploration and production contracts, which the central government in Baghdad has refused to recognize. The newly established Iraqi national constitution significantly opened as many petroleum-control questions as it resolved. Negotiated in 2005, the constitution not only separated branches of government, but established Federalism as its lodestar. When faced with unresolved issues over regional and national control over petroleum resources, however, International Oil Companies (IOCs) function in an ambiguous legal environment that fails to clearly distinguish between federal and regional powers.