PHILIPPINES IRAQ CRUDE OIL PRODUCTION (BARRELS PER DAY) LABOR FORCE (modeled ILO estimated value) 25,250 41 2.99 million 57 Iraq is 118 times more than the Philippines when it comes to crude oil production . It has comparative advantage in the production of crude oil. Since Iraq is relatively capital abundant in crude oil, it should specialize in production and exportation of crude oil which is relatively capital intensive. Philippines is higher in labor participation rate compared to Iraq according to the database of International Labour Organization. It has comparative advantage in labor force. Since Philippines is relatively labor abundant , it should specialize in the production and exportation of product that is labor intensive . FACTOR IRAQ PHILIPPINES 2.99 million/57 25,250/41 OPPORTUNITY COST 52, 546 615.85 Reference: https://www.nationmaster.com/country-info/compare/Iraq/Philippines/Energy https://data.worldbank.org/indicator/SL.TLF.CACT.ZS?locations=IQ Iraq is one of the countries in middle east that is considered as one of the largest producers of oil around the world. It has a vast oil reserves which they export to different oil importing countries such as the Philippines. It’s state economy is dependent on its oil sector. It has contracts with different major oil companies around the world which makes them have large potential to further expand oil exports and revenues from it. But Iraq will still need to make significant upgrades and improvements to its internal processing and pipelining of oil, and also its export system and infrastructure to enable their deals with the oil companies reach their best economic potential. On the other hand, Philippines’ current maximum capacity in oil production is so low when you compare it with countries like Iraq. Although, its crude oil processed grew during this decade, it is still not enough to meet its fuel demand in the country. That is why the Philippines is dependent and heavily relies on crude oil supply from large oil producing countries such as Iraq. With petroleum product imports rising to 97.53 million barrels in 2017 from 86.11 million barrels in 2016, DOE data showed. Its two biggest suppliers of petroleum products -- China and South Korea -- accounted for 56% of its total imports in 2017. To grow the oil producing capacity and reserves of the country, it will need to use and utilize the underdeveloped reserves that the country has and work on the petroleum system and technologies so that it can further explore the petroleum accumulations located around the country and have a promising future for oil economy just like the big oil producing countries in the middle east.
