Basra oil Between the magnitude reserves and the waste of resources

Dr.Yahya Hamoud Hassan- university of Basra-college of management and economics

1. Executive Summary:
2. The exportability of Basra oil features international correlations related to the foreign market, it requires the Iraqi marketing company to increase the profit of exporting Iraqi crude oil in the international oil markets, by achieving some kind of balance in the geographical distribution of its exports to the main consumption areas of the world.
3. Oil and gas are one of the most influential sources of environmental pollution in all their different stages of production and consumption in the Basra governorate, Oil has a noticeable impact on the environment and social aspect, so one of the most difficult things in the areas of development is to achieve rapid increase without environmental damage.
4. There are no government measures that limit high levels of pollution, or reduce emissions in production, and no policy encourages renewable energy sources, increasing the risk of pollution in Basra governorate, Iraq’s refineries also lack special sections to measure the extent of pollution of environmental elements – water, air, and soil, and work to control the sources of these pollutants – to be within the limits allowed by environmental protection organizations.
5. 4. In regard to the funds of petrodollar revenues, and since Basra is the most oil-producing city in Iraq, it produces more than (3) million barrels per day, and we impose about (3) million dollars per day, and therefore the revenues of the governorate per year are about (32.400) billion dollars per year (90 million dollars per month×360 per day).
6. The revenues of Basra refineries (the refining capacity of the Basra refinery is about 150,000 barrels per day), and the privileges granted to the governorate and its allocations must be reconsidered, especially as it suffers from pollution more than other governorates.
7. Improve government procedures regarding the way the issue of petrodollar funds is handled, and solve the bureaucratic problem of blocking the passage of funds allocated to the governorate as an oil-producing province.
8. Iraqi crude oil is characterized by a high sulfur content, which requires processing before it is offered in the market, and Iraqi refineries lack the presence of special sections to measure the extent of pollution of environmental elements (water, air, soil), and work in controlling the sources of these pollutants to be within the limits allowed by environmental protection organizations, and here it is necessary to focus on the health consequences borne by the governorate as a result of the unfair use of the environment.
9. Introduction:

Basra Governorate is one of the most important economic pillars in Iraq, as it has a huge oil reserve that represents (70%) of the country’s production capacity, and it also houses the largest strategic refineries, as well as the country’s water window towards the Gulf, the Arabian Sea, the Indian Ocean, and the Red Sea. About (25%) of Iraq’s total oil production goes to domestic consumption, (5%) to power plants that consume light crude oil, and (20%) to refineries to obtain oil derivatives, such as: (gasoline, white oil, gas oil, lubricants… etc.) which are consumed locally, and the Petroleum Products Distribution Company distributes derivatives to gas stations, Basra is one of the first cities where oil refineries were built in Iraq, and among the countries that built a refinery in the Middle East, as the beginning of the activity of the refining industry in Iraq dates back to 1927, when the first refinery was built in Alwand. In 1953, the Muftiya refinery was constructed in the north of Basra city, and then the Shuaiba refinery west of Basra in April 1974. These refineries are engaged in the production of petroleum products, which are as follows: (Naphtha, white oil, jet fuel, gas oil, and fuel oil), Production from Basra fields is about (3.25) million barrels per day of Iraq’s production capacity, and about (70%) of Iraq’s total production comes mainly from northern and southern Rumaila (1.4 million barrels per day), West Qurna (550,000 barrels per day), Zubair (403,000 barrels per day), Majnoon (198.00 barrels per day), Nahran Omar (63,000 barrels per day), and Al-Lahis (30,000 barrels per day).