Iraq presents one of the most stark energy paradoxes in the modern market. As the world’s fifth-largest oil reserve holder, it possesses enough natural gas to power millions of homes. Yet, due to a persistent lack of gas-capture infrastructure, it continues to flare that wealth away—spending billions to import the very same fuel from neighboring Iran.
In my latest piece for Forbes, I examine how this "resource curse" has moved from an economic burden to a severe geopolitical risk. With the Strait of Hormuz under pressure and regional tensions at a breaking point, Baghdad's dependency on Iranian energy isn't just a budget leak; it's a national security vulnerability.
Key Takeaways for the Energy Industry:
The Flaring Failure: Iraq remains one of the world's top gas flarers, wasting a resource that could eliminate its chronic blackouts.
The Import Trap: Despite its oil wealth, Iraq relies on Iran for 40% of its power needs, a relationship complicated by U.S. sanctions and regional war.
Infrastructure as Sovereignty: This situation underscores a global truth: power belongs to those who control the processing and transit of energy, not just the extraction.
I'd be interested to hear from the Energy Central community: How can international infrastructure partners better incentivize gas-capture projects in volatile regions where the "payback" is as much about regional stability as it is about ROI? https://www.forbes.com/sites/kensilverstein/2026/04/07/opecs-no-2-producer-burns-its-own-gas-then-buys-irans/