Concern for Iraq Oil

Iraq’s oil pipelines are decades past their use-by-date. “We are afraid of anything happening to them,” said Deputy Oil Minister Ahmad Shamma, according to Iraq Oil Report.

US concerns for the ageing infrastructure were pushed as early as 2008, but now billions of dollars are being invested to create new pipelines to protect Iraqi oil exports. Shamma indicated that containment might have been lost due to corrosion, but said that “We will test them and see what we can do with them. We will operate them as long as it’s possible.”

Despite billions of dollars being invested in the oil industry in Iraq, no new pipelines have yet been developed. There have been reports of new pipelines to Turkey, routes to Israel, and connecting to Europe, and even pipeline deals with Iran.

One thing is for sure, with 95% of Iraq’s revenue coming from oil, a major shutdown of its existing pipelines before new ones are up-and-running would be a disaster.

(Sources: Iraq Oil Report)

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