The Real Reason Behind U.S. Resuming Iraqi Kurdistan Oil Imports

Core Insights - Iraq has significant natural gas reserves, estimated at 3.5 trillion cubic meters (tcm), ranking 12th globally, with around 75% being associated gas [1] - The International Energy Agency (IEA) estimates recoverable resources could be as high as 8.0 tcm, with 30% being non-associated gas, indicating a substantial potential for future discoveries [1] - The Kurdistan Region of Iraq (KRI) has faced security challenges impacting its energy sector, particularly with recent attacks on gas fields, which have raised concerns about foreign investment and energy independence from Iran [2][8] Natural Gas Reserves - Iraq's proven reserves of conventional natural gas are 3.5 tcm, with the IEA suggesting a higher potential of 8.0 tcm [1] - The KRI is estimated to hold 25 trillion cubic feet (tcf) of proven gas reserves and up to 198 tcf of unproven resources, contributing to around 3% of global deposits [5] - The IEA noted a high prospectivity in gas operations, predicting gas production could reach nearly 1,300 million cubic feet per day (mmcf/d) by the end of 2025 [5] Security and Geopolitical Context - The Khor Mor gas field attack is linked to Iranian influence, aimed at deterring KRI's gas development and maintaining Iraq's dependence on Iranian energy imports [2][8] - The U.S. has resumed oil imports from the KRI, signaling a strategic commitment to the region and a counter to Iranian influence [3][9] - Ongoing Iranian-backed destabilization efforts target foreign investments in the KRI's gas sector, complicating the energy landscape [8] Investment and Infrastructure - Significant foreign investments are being made in Iraq's gas sector, with companies like Shell and TotalEnergies leading initiatives to utilize associated gas for power and exports [4] - The KRI lacks a fully developed gas infrastructure, which has historically deterred investment and left many gas fields underutilized [6][7] - The U.S. and its allies are expected to provide financial support and security for energy operations in Iraq, reinforcing their presence in the region [9]