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R ELIGION , P OLITICS , AND THE E CONOMY

has estimated that the country would have to invest billions of dol- lars to upgrade this infrastructure to maintain the current level of production. In 2009, the Iraqi Ministry of Oil granted licenses allowing international oil companies to access some of the country’s oil fields, paying a royalty to the government. Some of those funds are being used to upgrade roads, pipelines, ports, and oil refining facilities. The balance is used by the government for other impor- tant infrastructure improvements, such as new schools, hospitals, and highways. In addition to its vast oil resources, Iraq has 110 trillion cubic feet of proven natural gas reserves. Of that, 70 percent is “associated” natural gas, which is produced at the same time that oil is extracted. There are three main manufacturing areas in Iraq, the most

An oil pumping station in southern Iraq. The country controls the world’s fifth-largest petroleum reserves, and oil is an important part of Iraq’s economy.