Turkey becomes the new oil route

In the midst of the crisis in the Persian Gulf, Turkey is once again moving to the center of global energy flows. Faced with blocked sea routes, Iraq is looking for alternatives - and is increasingly relying on an old, long-neglected pipeline connection to the Mediterranean. Baghdad is planning to put the Kirkuk-Ceyhan pipeline back into full operation. The pipeline connects northern Iraqi oil fields with the Turkish port of Ceyhan - and could secure some of the exports that previously ran via the Persian Gulf. The background to this is massive disruptions to the tanker routes, which forced Iraq to drastically reduce its production at times. The infrastructure had been weakened for years by attacks and political conflicts. It is now being reactivated at full speed. At the same time, the first deliveries from the autonomous region of Kurdistan have already resumed, even if they continue to be overshadowed by political tensions between Erbil and Baghdad. Old conflicts, new urgency However, the expansion of alternative export routes is being slowed down by ongoing disputes between the Iraqi central government and the Kurdish regional government. Questions regarding the control of exports and financial conditions remain unresolved. The pressure to act is high: as OPEC's second-largest oil producer, Iraq is heavily dependent on stable export routes. The temporary blockade of central trade routes caused a massive slump in production before it recently recovered. In addition to the pipeline, Baghdad is also relying on interim solutions such as oil transportation by truck and alternative routes via Jordan or Syria. Nevertheless, the connection via Turkey remains the most important strategic option. The current development shows: In an increasingly fragmented energy world, land-based transportation corridors are gaining in importance - and Turkey could play a key role in the long term. The post Turkey becomes the new oil route appeared first on ostwirtschaft.de.