The agreement was reached on U.S. soil in an effort to reduce dependency on the Strait of Hormuz.
The Department of State announced Iraq and Syria’s intent to rehabilitate the Iraq-Syria oil pipeline. Two major oil companies, Basra Oil and Syrian Petroleum, signed the agreement at a Chamber of Commerce summit which highlighted U.S. investment in Iraq, with U.S. Energy Secretary Chris Wright presiding.
The statement said that “both countries recognize the strategic objective of restoring a critical energy corridor linking Iraqi oil production to Mediterranean export markets and beyond.”
The Iraq-Syria pipeline had been closed since 2003 due to damage caused by the U.S. during the war in Iraq. With disruptions of oil tankers transiting in the Strait of Hormuz due to the war with Iran, Middle Eastern nations are considering this pipeline as an alternative for oil transportation. The department said the rehabilitated pipeline’s early transport capacity will be 2 million barrels a day.
Secretary Wright said, “There is so much room to drive improvement in Iraq, to raise oil production, to reduce dependencies on hostile neighbors, to bring freedom, prosperity and abundant energy to the nation of Iraq.”
As the Lord Leads, Pray with Us…
- For Secretary Wright as he seeks to broker international cooperation to improve the export and transmission of oil in the Middle East.
- For U.S. officials to be discerning as they facilitate efforts to rehabilitate the Iraq-Syria pipeline.
Sources: CNBC, Department of State
