Expert: High oil prices will not benefit Iraq due to the budget deficit
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Shafaq News/ Oil expert Hamza Al-Jawahiri confirmed on Sunday that Iraq will not benefit from the rise in crude prices this year due to the financial deficit in the federal budget, while reassuring that clean energy will not compete with fossil fuels.
Al-Jawahiri said in an interview with Shafaq News Agency, "The rise in oil prices will reflect positively on Iraq, but it will not benefit from this rise during the current year because it will go to fill the deficit in the 2021 budget."
And he indicated that "it is possible that funds will be available next year for sustainable development, which depends on the budget that will be set and the amount of money that may be available."
Regarding clean energy and its competition with fossil fuels, Al-Jawahiri explained that “clean energy, no matter how developed, will not compete with oil, coal and gas in energy production, and therefore Iraq will remain for decades an oil producer because the costs of clean energy development are high, in addition to that its technology has not developed enough to give you low cost energy products.
He stressed that "oil is an important source and cannot be abandoned so easily. It is a major source of energy production and petrochemical materials, and its importance is constantly increasing, and the demand for it is increasing annually by 3 million barrels, and thus Iraq will continue to produce and sell oil at good prices."
Al-Jawahiri concluded by saying that "coal is still competing and playing an important role in energy production, although many spoke in 1910 that it would disappear after the emergence of oil and gas, but we see that it still occupies a position in energy production and comes in second place after oil."
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