Tuesday, August 29, 2006

The Mosul - Haifa Oil Pipeline

An anti-Israel caller to C-Span this morning was critical of Ahmad Chalabi for advocating the rebuilding of the Mosul-Haifa oil pipeline--a pre-1948 oil export route. So, I googled the idea, and found this 2003 article from the Guardian describing the proposal. My reaction: why not? In fact, why not make it an explicit goal of the European UN force--to rebuild the Iraq-Israel oil pipeline and turn the politics of oil into the politics of pro-Western democracy as an overt goal of American diplomacy in the Middle East? Here's the bottom line:
The plan envisages the reconstruction of an old pipeline, inactive since the end of the British mandate in Palestine in 1948, when the flow from Iraq's northern oilfields to Palestine was re-directed to Syria.

Now, its resurrection would transform economic power in the region, bringing revenue to the new US-dominated Iraq, cutting out Syria and solving Israel's energy crisis at a stroke.

It would also create an end less and easily accessible source of cheap Iraqi oil for the US guaranteed by reliable allies other than Saudi Arabia - a keystone of US foreign policy for decades and especially since 11 September 2001.

Until 1948, the pipeline ran from the Kurdish-controlled city of Mosul to the Israeli port of Haifa, on its northern Mediterranean coast.

The revival of the pipeline was first discussed openly by the Israeli Minister for National Infrastructures, Joseph Paritzky, according to the Israeli newspaper Ha'aretz .

The paper quotes Paritzky as saying that the pipeline would cut Israel's energy bill drastically - probably by more than 25 per cent - since the country is currently largely dependent on expensive imports from Russia.

US intelligence sources confirmed to The Observer that the project has been discussed. One former senior CIA official said: 'It has long been a dream of a powerful section of the people now driving this administration [of President George W. Bush] and the war in Iraq to safeguard Israel's energy supply as well as that of the United States.

'The Haifa pipeline was something that existed, was resurrected as a dream and is now a viable project - albeit with a lot of building to do.'

The editor-in-chief of the Middle East Economic Review , Walid Khadduri, says in the current issue of Jane's Foreign Report that 'there's not a metre of it left, at least in Arab territory'.

To resurrect the pipeline would need the backing of whatever government the US is to put in place in Iraq, and has been discussed - according to Western diplomatic sources - with the US-sponsored Iraqi National Congress and its leader Ahmed Chalabi, the former banker favoured by the Pentagon for a powerful role in the war's aftermath.

Sources at the State Department said that concluding a peace treaty with Israel is to be 'top of the agenda' for a new Iraqi government, and Chalabi is known to have discussed Iraq's recognition of the state of Israel.

The pipeline would also require permission from Jordan. Paritzky's Ministry is believed to have approached officials in Amman on 9 April this year. Sources told Ha'aretz that the talks left Israel 'optimistic'.
More on the pipeline from Wikipedia:
The Trans-Arabian Pipeline Company (Tapline), was founded as a joint venture between the Standard Oil company of New Jersey (now Esso), Standard Oil of California (Chevron), The Texas Company (Texaco), and Socony-Vacuum Oil Company (Mobil), however, it eventually became a fully owned subsidiary of Aramco. The company built and operated the Trans Arabian Pipeline, a 1214 km 30" oil pipeline from Qaisuimah, Saudi Arabia to Sidon, Lebanon. In its heyday, it was an important factor in the global trade of petroleum-- helping with the economic development of Lebanon-- as well as American and Middle Eastern political relations.

Construction began in 1947. Originally the Tapline was intended to terminate in Haifa which was then in Palestine but due to the establishment of the state of Israel, an alternative route through Syria (via the Golan Heights) and Lebanon was selected with an export terminal in Sidon. Oil transport through the pipeline started in 1950. The initial capacity of the pipeline was 300,000 barrels per day (bpd), eventually rising to a maximum capacity of about 500,000 bpd with the addition of several more pumping stations.

Since the 1967 Arab-Israeli War, the section of the pipepline which runs through the Golan Heights came under Israeli control, though the Israelis permitted the pipeline's operation to continue. After years of constant bickering between Saudi Arabia and Syria and Lebanon over transit fees, the emergence of oil supertankers, and pipeline breakdowns, the section of the line beyond Jordan ceased operation in 1976. The remainder of the line between Saudi Arabia and Jordan continued to transport modest amounts of petroleum until 1990 when the Saudis cut off the pipeline in response to Jordan's support of Iraq during the first Gulf War. Today, the entire section of the line is unfit for oil transport.

Despite these problems, the Tapline has remained a potential export route for Persian Gulf oil exports to Europe and the United States. At least one analysis has indicated that the transportation cost of exporting oil via the Tapline through Haifa to Europe would cost as much as 40 percent less than shipping by tanker through the Suez Canal. In early 2005, rehabilitation of the Tapline at an estimated cost of $100 to $300 million was one of the strategic options being considered by the Jordanian government to meet oil needs.