The Kirkuk-Haifa pipeline

Abstract

Israel, a state poor in hydrocarbon resources, is surrounded by Arab states with rich crude oil sources. Since Israel is unable to import crude oil from its neighbors in the region because of political reasons, it has to look for exporters outside the region. This increases transportation costs and adds a heavy expense to the existing burden of balance of payment calculations. Construction of a pipeline between Kirkuk and Haifa seems to decrease the transportation costs of crude oil and enhance the security of Israel‘s crude oil supply efforts. It requires Iraqi consent to supply the pipeline with crude oil. An operational Kirkuk-Haifa pipeline is far from being a mere economic issue. It is embedded with the politics of the Arab- Israeli peace process at the same time. It does not seem wise to think that the Arab-Israeli dispute would reach a conclusion and the Kirkuk-Haifa pipeline would be constructed unless the demands and considerations of both parties of the dispute are satisfied.

Israel, a state poor in hydrocarbon resources, is surrounded by Arab states with rich crude oil sources. Since Israel is unable to import crude oil from its neighbors in the region because of political reasons, it has to look for exporters outside the region. This increases transportation costs and adds a heavy expense to the existing burden of balance of payment calculations. Construction of a pipeline between Kirkuk and Haifa seems to decrease the transportation costs of crude oil and enhance the security of Israel‘s crude oil supply efforts. It requires Iraqi consent to supply the pipeline with crude oil. An operational Kirkuk-Haifa pipeline is far from being a mere economic issue. It is embedded with the politics of the Arab- Israeli peace process at the same time. It does not seem wise to think that the Arab-Israeli dispute would reach a conclusion and the Kirkuk-Haifa pipeline would be constructed unless the demands and considerations of both parties of the dispute are satisfied.