Advantages Of Oil In Kurdistan

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Asoo Othman Dr. Bilal Section: 2 Date: 28-11-2015 Advantages Oil for KRG Oil is a unique source that derives from petroleum, which is black oil under the earth’s surface, and it discovered in the early 1900s by the British Company. Most of the countries in the world, such as Iraq or Kurdistan, USA, UAE, Russia, Canada, Saudi Arabia, and China have oil, so they will be powerful in economy and political way. In the economical way, the government can make opportunity for their population, so it makes the economy stable. Also, in the political view, the government can gain money from selling oil, so they can help their citizens. Furthermore, the government can use oil to produce electricity, and have a high infrastructure of their country (EDF…show more content…
Furthermore, many large companies in the world want to connect with KRG to do business in oil. “Kurdistan has an excellent role in the world energy, especially in the oil industry because the price of extracting oil in Kurdistan is not expensive” (Sulcci). It means that the price of extracting oil in Kurdistan is less than many countries in the world. For example the price of extracting oil in Canada is 15 times higher than Kurdistan region, and in Russia is 7 times higher than Kurdistan region(Sulcci). Even though KRG can obtain benefit from oil because they have more fields to produce more oil, and they share oil with huge companies in the world to gain money, oil has many disadvantages for KRG since KRG neglects the agricultural region, and any problem or change in their production and the rate of…show more content…
First, KRG focuses too much on oil, so KRG neglects agriculture (USAID/Iraq). Agriculture is a very important element in life because it is the backbone of the economic system. Also, Agriculture provides food for every country, and it is the opportunity for people to work on and earn money. Furthermore, agriculture helps to reduce the rate of poverty in Kurdistan; as the article mentions that “Agriculture can serve as the cornerstone to poverty reduction and economic stability”(USAID/Iraq). It means that poor families can maintain their life by selling their products, so the rate of poverty does not increase. In another way, if the KRG aids to improve agriculture, farmer or government can send their products to abroad,so it is another way to fix the economic issues. Consequently, government should encourage people who leave the village to go back and start farming because it is away to the growth agriculture system in

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