Why is petroleum Iraq’s most valuable natural resource?

Petroleum is Iraq’s most valuable natural resource primarily because the country holds some of the world’s largest known crude oil reserves. Iraq is part of a region that accounts for more than 23 percent of the world's proven oil reserves, with significant potential for further discoveries in its southwestern territory.12

The economic importance of this resource is profound:
* Economic Foundation: Oil production provides the largest single contribution to Iraq’s gross domestic product (GDP).1
* Foreign Exchange: Petroleum exports constitute almost all of the country's foreign exchange.1
* Global Influence: As a founding member of the Organization of Petroleum Exporting Countries, Iraq has historically played a central role in the global energy market, despite periods of instability caused by war and international sanctions that have impacted production and distribution.12

While the industry has faced significant challenges due to conflict and civil unrest, the sheer scale of Iraq's oil endowment remains the cornerstone of its national economy.12