After just over 10 years of debate, amendment and repeated rejection in Parliament, Iraq's landmark oil bill is no closer to passing. The Cabinet first introduced the draft law in February 2007 to revamp and jump-start the country's crucial oil and gas sector after the fall of longtime leader Saddam Hussein. And though the intervening decade has done little to address the underlying factors that paralyzed Baghdad's attempt at reforming the energy industry, that hasn't stopped the country's leaders from trying. Since taking office in August, for instance, Oil Minister Jabbar al-Luaibi has steered Iraq's energy policy in a more pragmatic direction. The legislature will soon debate the latest iteration of a bill to reinstate a national oil company to oversee the country's smaller, regional firms, and al-Luaibi recently announced that Baghdad is exploring new contract models for foreign investors. Leaders such as Shiite National Alliance head Ammar al-Hakim, meanwhile, have proposed various plans to reconcile Iraq's different stakeholders to end the country's political gridlock. Even so, the differences between and within Iraq's Sunni Arab, Shiite Arab and Kurdish communities will continue to undermine progress in the oil and gas sector, particularly with elections looming on the horizon.
Mapping Iraq's Discord
If a picture is worth a thousand words, a map is just as valuable in assessing the challenges facing the Iraqi government. The country's oil production, which even at today's depressed oil prices generates roughly 30 percent of its gross domestic product, is concentrated in just a handful of areas. In southern Iraq, the predominantly Shiite province of Basra alone accounts for roughly two-thirds of the country's oil production; were it a country, Basra would be among the world's top 10 oil producers. The Kurdistan Regional Government (KRG) in northern Iraq, along with the nearby disputed territories under Kurdish control, produces another 13 percent of the country's oil. And the Sunni-majority regions in central and western Iraq produce little oil to speak of.





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