The International Energy Agency’s Iraq Energy Outlook (2012) reports, “Alongside its announcement of 143 billion barrels of proven reserves, the Ministry of Oil stated in 2010 that Iraq’s undiscovered resources amounted to some 215 billion barrels.” While the former figure is equivalent to almost 9 percent of the world’s proven oil reserves, the latter is more than 13 percent of the total. Iraq also has significant natural gas reserves that constitute some 1.5% of the world's total, making Iraq 13th among global reserve holders.
For neighboring Turkey — which imports 93% of the oil it consumes and 98% of its gas — Iraq offers an excellent source of potentially cheaper energy and an opportunity to diversify its supply. Iraq's favorable exploration, development and production costs as well as lower transportation expenses highlight its importance for Turkey, which paid $60.1 billion for its energy imports in 2012. That year, 12% of its oil imports came from Iraq, while 41% was imported from Iran.
