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There is no doubt that oil is considered a strategic commodity for producing and exporting. It is been experienced that oil is an important means to achieve economic growth. The oil industries encounter conflicts such as widespread environmental issues, human displacement, and inadequate compensation for losses imposed in the oil-producing communities, and inadequate community level involvement. These are leading to alienation between states and the indigenous population. The aim of the current research is to investigate the impacts of oil field development for rural areas, having Taq-Taq Oil Field in Kurdistan Region Iraq (KRG) as a case study. The research project was conducted in the form of a survey study. The population of the study included the rural residents in six villages around the field. The necessary data for this research was collected squarely 48 samples. Rural residents in the study area were taken using a random sampling method. The reliability of the questionnaire was calculated by Cronbach alpha coefficient for different sections. After conducting a pilot study for each structure respectively calculated: economic infrastructural, social, cultural, and environmental factors. The results of factor analysis showed that the negative and positive impacts of oil industry development occurred in the rural area. In this case study, a variance of %64 explained for entire factors included: infrastructural, social, cultural, economic, and environmental.
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