But in May 1996, the U.N. and the government of Iraq agreed to the implementation of U.N. Resolution 986, which allows Iraq to sell a quantity of crude oil worth $1 billion every 90 days for a trial period of 180 days. The earnings will be placed in a U.N.-managed escrow account and used for humanitarian aid, reparations for the 1990 Persian Gulf War, support of U.N. monitoring operations in Iraq, and other purposes.

Increased Iraqi crude oil output could affect world oil prices. Before the war, Iraqi production had reached 3.5 million barrels per day, about 6 percent of the world total. In 1995, Iraqi net crude oil production was 555,000 barrels per day. The Iraqi government has predicted that it will be able to raise production capacity to 3.2 million barrels per day within 14 months of the end of the U.N. embargo and to 5 million barrels per day by 2000. Achieving these goals, however, will require substantial foreign investment, estimated at perhaps $30 billion over 5 to 8 years.

Country Analysis Brief: Iraq summarizes the history of Iraqi oil development, the nation's oil production and export infrastructure, and its natural gas and electric power capacities, and gives brief overviews of Iraq's demography, economy, and environment. Like other Country Analysis Briefs, it is updated at least annually and is available primarily via the Energy Information Administration's World Wide Web Home Page (http://www.eia.doe.gov).

For general information about energy data and analysis, contact the National Energy Information Center at 202-586-8800 or via Internet E-Mail at infoctr@eia.doe.gov. For more information about this Country Analysis Brief, contact Lowell Feld, Office of Energy Markets and End Use, Energy Information Administration, at 202-586-9502 or via Internet E-Mail at lfeld@eia.doe.gov. If you have problems accessing the report via the Internet, contact wmaster@eia.doe.gov or call 202-586-2753.