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By Mark Simmonds, United Kingdom’s FCO Minister for International Energy.
Iraq is retaking its position at the energy top table. After decades of economic mismanagement and political repression, the country is emerging as one of the most important and dynamic global energy producers. Oil production has increased by over 50% in the last six years, and is projected to more than treble again in the coming decades. This rapid expansion is already redrawing the global energy map, making a vital contribution to international energy security.
I was fortunate to witness this firsthand on my recent trip to Baghdad – the first by a UK Energy Minister since the fall of Saddam, and one of four visits to Iraq by UK Ministers in the last six months. The Iraq I saw was a vibrant society with growing economic opportunities. I was struck in Baghdad by the level of investment across all economic sectors, from construction and manufacturing to education and healthcare. The oil and gas industries are playing a vital role driving this much needed economic reconstruction. It is clear that Iraq’s hydrocarbon wealth must be harnessed effectively to bring prosperity to its people. I discussed this point in detail with Deputy Prime Minister Shahristani and am pleased to see so much progress already in hand. But the potential is even greater, if Iraq makes the right choices with the right partners.
British business is at the forefront of this process. Our biggest energy companies have committed multi-billion dollar investments to Iraq, and I am pleased to see that so many other businesses have followed. The UK is committed to strengthening our economic partnership with Iraq. We must continue to work together to share business expertise across all sectors, but particularly in those where the UK are global leaders, in energy, infrastructure, defence, ICT, education, healthcare, and banking. These themes were explored at the recent Iraq-UK Ministerial Trade Council, which was co-chaired in Baghdad by my colleague Alistair Burt and the Iraqi Foreign Minister, and I am confident that this forum will provide the foundations for future cooperation on trade and commerce.
But the process will not happen overnight. We must be honest with ourselves about the obstacles that still make Iraq a challenging place to do business. It is no secret that the country is going through a difficult period politically. This is creating uncertainty in the business community and puts at risk future investment. Without clear governance and a transparent business sector, Iraq’s economic future risks remaining forever just beyond reach. Overcoming trade barriers is a top priority, and the UK is working closely with the Iraqi authorities to address the most pressing concerns, be they legislative like the Hydrocarbons laws or bureaucratic like the visa and customs processes. We are doing what we can to help UK business work in this market, such as establishing a Visa Application Centre in Baghdad, officially opened by my colleague Lord Green in January.
What is also clear to me – despite much of the media narrative- is that Iraq is a country on the move. The opportunities are fantastic and the potential immense. The global energy market is relying on increasing Iraqi oil and gas production to meet future demand – the International Energy Agency forecasts that almost half of the increase in global demand over the next 25 years will be met by Iraqi oil. Without these new resources, markets will become more volatile, energy security will diminish and fuel poverty will extend across the developing world. Here in the UK, we fully understand that we are connected to a globalised world, and global markets. Nowhere is this more valid than in the energy field, where delivering reliable and affordable energy supplies to the UK, and globally, as part of the secure transition to a low carbon economy, remains a top Government priority. It is no overstatement to suggest that the success of Iraq in realising its ambitious energy strategy will be one of the key components of global economic growth over the coming decades. The UK stands by the Iraqi people in their efforts to achieve this, and is working in close partnership to promote a stable and prosperous future for all.
Mark Simmonds is the United Kingdom’s FCO Minister for International Energy.
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Iraq is retaking its position at the energy top table. After decades of economic mismanagement and political repression, the country is emerging as one of the most important and dynamic global energy producers. Oil production has increased by over 50% in the last six years, and is projected to more than treble again in the coming decades. This rapid expansion is already redrawing the global energy map, making a vital contribution to international energy security.
I was fortunate to witness this firsthand on my recent trip to Baghdad – the first by a UK Energy Minister since the fall of Saddam, and one of four visits to Iraq by UK Ministers in the last six months. The Iraq I saw was a vibrant society with growing economic opportunities. I was struck in Baghdad by the level of investment across all economic sectors, from construction and manufacturing to education and healthcare. The oil and gas industries are playing a vital role driving this much needed economic reconstruction. It is clear that Iraq’s hydrocarbon wealth must be harnessed effectively to bring prosperity to its people. I discussed this point in detail with Deputy Prime Minister Shahristani and am pleased to see so much progress already in hand. But the potential is even greater, if Iraq makes the right choices with the right partners.
British business is at the forefront of this process. Our biggest energy companies have committed multi-billion dollar investments to Iraq, and I am pleased to see that so many other businesses have followed. The UK is committed to strengthening our economic partnership with Iraq. We must continue to work together to share business expertise across all sectors, but particularly in those where the UK are global leaders, in energy, infrastructure, defence, ICT, education, healthcare, and banking. These themes were explored at the recent Iraq-UK Ministerial Trade Council, which was co-chaired in Baghdad by my colleague Alistair Burt and the Iraqi Foreign Minister, and I am confident that this forum will provide the foundations for future cooperation on trade and commerce.
But the process will not happen overnight. We must be honest with ourselves about the obstacles that still make Iraq a challenging place to do business. It is no secret that the country is going through a difficult period politically. This is creating uncertainty in the business community and puts at risk future investment. Without clear governance and a transparent business sector, Iraq’s economic future risks remaining forever just beyond reach. Overcoming trade barriers is a top priority, and the UK is working closely with the Iraqi authorities to address the most pressing concerns, be they legislative like the Hydrocarbons laws or bureaucratic like the visa and customs processes. We are doing what we can to help UK business work in this market, such as establishing a Visa Application Centre in Baghdad, officially opened by my colleague Lord Green in January.
What is also clear to me – despite much of the media narrative- is that Iraq is a country on the move. The opportunities are fantastic and the potential immense. The global energy market is relying on increasing Iraqi oil and gas production to meet future demand – the International Energy Agency forecasts that almost half of the increase in global demand over the next 25 years will be met by Iraqi oil. Without these new resources, markets will become more volatile, energy security will diminish and fuel poverty will extend across the developing world. Here in the UK, we fully understand that we are connected to a globalised world, and global markets. Nowhere is this more valid than in the energy field, where delivering reliable and affordable energy supplies to the UK, and globally, as part of the secure transition to a low carbon economy, remains a top Government priority. It is no overstatement to suggest that the success of Iraq in realising its ambitious energy strategy will be one of the key components of global economic growth over the coming decades. The UK stands by the Iraqi people in their efforts to achieve this, and is working in close partnership to promote a stable and prosperous future for all.
Mark Simmonds is the United Kingdom’s FCO Minister for International Energy.
[You must be registered and logged in to see this link.]
