The Urgent Need for US Support in Iraq’s Energy Sector Transformation

The Trump administration’s withdrawal of Iraq’s sanctions waiver has deepened its energy crisis, intensifying reliance on Iranian supplies. Iraq, despite substantial oil and gas resources, lacks proper infrastructure, and the situation demands urgent intervention to promote energy independence and combat pervasive issues in its energy sector.

The recent revocation of Iraq’s sanctions waiver by the Trump administration has exacerbated the country’s energy crisis. This waiver previously allowed Iraq to import natural gas from Iran, accounting for a significant portion of its electricity generation. Unstable Iranian supplies this winter have further strained Iraq’s energy situation, highlighting its dependency on Iran for electricity and natural gas.

The United States’ decision aligns with President Trump’s “maximum pressure” policy aimed at compelling Iran to negotiate over its nuclear program. This policy reflects long-standing tensions between the US and Iran and seeks to pressure Tehran regarding its support for various militia groups. The recent expiration of the waiver signals an urgent need for Iraq to enhance its energy independence from Iran.

Despite its vast oil production capacity and substantial natural gas reserves, Iraq currently lacks the necessary infrastructure to exploit its own gas resources efficiently. Much of its gas is associated with oil production and often flared rather than captured for use. The legacy of the Gulf Wars has left Iraq struggling with a chronic energy shortage and hampered efforts to modernize its electricity infrastructure.

Moreover, Iraq’s electricity grid is critically reliant on gas-fired power plants, primarily in the eastern and central regions. This dependency raises logistical and financial challenges as Baghdad endeavors to find alternatives. The anticipated stoppage of Iranian gas supplies could lead to even more extended power outages, worsening the ongoing energy crisis.

Additionally, Washington’s strategic interests involve pressuring the Iraqi government to resolve disputes with Iraqi Kurdistan, which would enable oil exports via Turkey. Such measures aim to diminish Iranian influence in Iraq, a task complicated by the country’s sectarian dynamics and strong Iranian-backed militia presence.

Interference from both the US and Iran has hindered significant improvements to Iraq’s energy infrastructure. Various challenges, including terrorism, corruption, political instability, and lack of funding, are impeding progress on regional energy projects such as the Jordan-Iraq electricity initiative, which aims to connect both countries’ grids.

The successful realization of the Jordan-Iraq electricity project could mitigate Iraq’s vulnerability to Iranian supply fluctuations. If completed, it could drastically reduce costs for ordinary Iraqis, who currently rely heavily on private generators for their electricity needs.

Iraq’s energy sector further suffers from issues like rampant corruption, security challenges, and heavy reliance on oil revenues, which expose the economy to price fluctuations. Current efforts toward renewable energy sources are minimal, with very low contributions from hydropower, solar, and wind.

The expectation that Iraq could secure energy independence without substantial US assistance is unfounded. Given its rich energy resources, it is paradoxical for Iraq to remain dependent on Iranian imports, especially after two decades of conflict and international intervention. The US must reconsider its actions and provide significant support to help Iraq establish energy self-sufficiency by improving its infrastructure and enabling regional partnerships.

The Trump administration’s insistence on new approaches must align with practical support for Iraq’s energy transition. An overhaul of Iraq’s national energy strategy is crucial for addressing the multifaceted challenges that have hindered the nation for over two decades, allowing it to move toward independence from Iranian energy supplies.

In summary, the US must acknowledge its role in Iraq’s energy dependency and proactively assist the country in developing its energy infrastructure. By supporting initiatives like the Jordan-Iraq electricity project and promoting regional cooperation, Iraq can reduce its reliance on Iranian energy. Effective strategies are essential for enhancing Iraq’s energy independence, ultimately paving the way for a stable and prosperous future.

Original Source: www.arabnews.com