Sustainable Development For Iraqi Oil And Gas Resources In the Light Dissertation

Sustainable Development For Iraqi Oil And Gas Resources In the Light of International Law - Dissertation Example 1.2. Background of the study Overview of the current situation in the Iraqi oil and gas industry From 1975 to 2003 the Iraq’s oil and gas industry has been entirely state-operated. Blanchard (2009) points out that during this time the infrastructure â€Å"suffered from the negative effects of war, international sanctions, a lack of investment and technology, and, in some cases, mismanagement† (p.1). After the collapse of Saddam’s Regime in 2003, new Iraqi government started to put plans to develop oil and gas industry as the sector critical for the national economy. The Iraqi Constitution states that oil and gas are exclusively owned by the Iraqi people in all regions, implying that the management of these resources is a federal responsibility. Nevertheless, the Kurdistan Regional Government (KRG) has opposed these and other related statements, interpreting the Federal Oil and Gas Law so that to pursue its own Regional Oil and Gas Law and policies (Al-adhadh 2008 : p.7). KRG claims: â€Å"Under the country’s constitution, oil and gas management is primarily a Regional right, and the main features of this Law are in line with Iraq’s draft oil law. †¦The Law not only affords the Kurdistan Region a clear and transparent legal structure for negotiations with investors; but it also benefits the rest of Iraq as, consistent with the constitution, the law requires the Kurdistan Region to share revenues from oil and gas development with the Federal Government in Baghdad† (Strategic Media n.d.: p.8). Such disagreement between national and regional interpretations of the Iraqi Oil and Gas Law entailed the current situation when, in spite of lengthy debates of economists and... This paper stresses that the need of new legal and policy guidelines for the sustainable development of the country’s petroleum resources is widely recognised among Iraqis, due to ongoing political debates the effective solution has not been found so far. The main reason is significant differences in the understanding of â€Å"the proper role and powers of federal and regional authorities in regulating oil and gas development; the terms and extent of potential foreign participation in the oil and gas sectors; and proposed formulas and mechanisms for equitably sharing oil and gas revenue†. Such differences are especially apparent in disagreements between the Iraq’s national government and the Kurdistan Regional Government. This study intends to answer a number of important questions, critical for the national economics of Iraq in terms of creating conditions for the effective management of Iraqi oil and gas industry in accordance to modern international policies of sustainable development. This report makes a conclusion that it is necessary to keep in mind that, in spite of economic growth is considered to be a powerful means of improvement of human well-being, economic development must be within the limits of what is ecologically sustainable. This is important because environment not only provides the resources for economic activity, but also ensures ecological conditions for life of humans. So, ecology is of the same great importance as economy. This study is focused on the unique current conditions in the Iraqi oil and gas industry and on the prospects for sustainable development in the production and end use of oil and gas in Iraq, with particular reference to Kurdistan region.