The -Haifa Pipeline ∗

Abstract , 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. Keywords: , Israel, Jordan, Crude Oil, Pipeline

INTRODUCTION II I I I I I

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İ. Demir

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Joint UNDP/World Bank Energy Sector Management Assistance Programme Ibid

The Kirkuk-Haifa Pipeline

ISRAELI DOMESTIC OIL DEMAND AND SUPPLY - AN OVERVIEW I I I I I I I I II I I I I I I I I I I I I I I

World Energy Monthly Review, I Statistics on the web’ I ‘Energy Balances for Israel’, I I ‘Eastern Mediterranean Energy Data, Statisticsand Analysis-Oil, Gas’,

İ. Demir

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HISTORICAL BACKGROUND OF THE KIRKUK-HAIFA PIPELINE I I I I I

Oil: Israels’ Covert Efforts to Secure Oil Supplies, Energy Policy, II Christian Science Monitor I

The Kirkuk-Haifa Pipeline

I I I I Iraq Company undertakes to construct a pipeline with a capacity of not less than three millions tones of oil a year. The commencement of this pipeline must be in a region which belongs to the Vilayets of Baghdad and Mosul, and which is bounded on the west by the Tigris, on the north by the Mesopotamian-Turkish frontier, and on the east by Persian border. This region excludes the zone reserved by a separate agreement of August 30, 1925 for exploitation by the Anglo Persian Oil Company on the part of the Government of Iraq.

The beginning of the pipeline may tentatively be considered to be round about Kirkuk, in the neighborhood of which the very rich wells of Baba Gurgur have been found. The pipeline will then follow a southwesterly course to Euphrates, which it will cross between Haditha and Hit. At the Euphrates the line will divide, one section running by way of Rutbs to the Bay of Acre, while the other section will lead to the Syrian port of Tripoli. Very important is the proviso that until a total quantity of four million tons a year via Haifa is reached, at less 50 per cent of the entire capacity of the whole pipe-line system must pass through the Haifa Harbor. December 31, 1935 is fixed as the terminus ad quem for the establishment of the pipeline. 11

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Middle East Economic Survey Annals of the American Academy of Political and Social Science, Guardian Reader Pages: I

İ. Demir

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I Journal of Educational Sociology, II Middle East Review of International Affairs, I Middle Eastern Studies, Oil and the Arab-Israeli Conflict, 1948-63, Ibid.,

The Kirkuk-Haifa Pipeline

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IRAQI CRUDE OIL PIPELINES II I I I I II II I I I II I I I

I Haaretz, Anatolia News Agency Middle East Journal,

İ. Demir

I I II I I I I I I I II II I I

I International Organization, Uluslararası Politikada Orta Doğu, I Strategic Positioning in the Oil Industry

The Kirkuk-Haifa Pipeline

II I I I I I I II I I I I II II I I I I I I I I I II

Oil Diplomacy in the Twentieth Century, Ham Güç Petrol Politikaları ve Pazarı, The Prize, ‘Cross Border Oil and Gas Pipelines: Problems and Prospects’ Insight Turkey,

İ. Demir

I I I I I II I I I I I I I I I I I I

The Journal of Energy Literature, I ‘Iraq Energy Data, Statisticsand Analysis-Oil, Gas’, I

The Kirkuk-Haifa Pipeline

I I I I II I I I I I I I I I

Devlet Sistem ve Kimlik, Transnational Relations and World Politics, Power and Intrdependence, Perspectives of Oil and Gas: The Road to Interdependence, III Washigton Report on Middle East Affairs, BBC Monitoring Middle East,

İ. Demir

I

THE U.S. POSITION I I I I I I I II I I I I I I I

I Journal of Palestine Studies, II The Observer, I ‘US Total Petroleum (Excl Crude) Exports to Israel (Thousand Barrels), II St. Petersburg Times,

The Kirkuk-Haifa Pipeline

I

THE ARAB-ISRAELI PEACE PROCESS I I I I I I I I II I I I II I I I

I Energy Policy, I I Haaretz I Energy Policy, I Middle East Economic Survey, Between East and West: Israel’s Foreign Policy Orientation 1948-1956, I I Cambridge Review of International Affairs,

İ. Demir

I I I I I I I I I I I I I I I I I

CONCLUSION I I I

I The Journal of Social, Political and Economic Studies, I

The Kirkuk-Haifa Pipeline

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REFERENCES I Middle East Economic Survey, BBC Monitoring Middle East, Middle East Economic Survey Oil: Israel’s Covert Efforts to Secure Oil Supplies, III Daily Star, I Journal of Palestine Studies, I Middle Eastern Studies,

I Middle Eastern Studies, III Daily Star,

İ. Demir

I Energy Policy, I The Journal of Social, Political and Economic Studies, II Middle East Review of International Affairs, Oil and the Arab-Israeli Conflict, 1948-63, Between East and West: Israel’s Foreign Policy Orientation 1948-1956, Annals of the American Academy of Political and Social Science, World Energy Monthly Review, I Haaretz, Perspectives of Oil and Gas: The Road to Interdependence, II Christian Science Monitor I I I Haaretz I I I I I I Guardian Reader Pages: I Load Date to LexisNexis Academic: Anatolia News Agency I II Washigton Report on Middle East Affairs, I ‘Energy Balances for Israel’, I I I Cambridge Review of International Affairs, I International Organization, Power and Intrdependence, Transnational Relations and World Politics,

The Kirkuk-Haifa Pipeline

I Journal of Educational Sociology, I I St. Petersburg Times, Ham Güç Petrol Politikaları ve Pazarı, I ‘Cross Border Oil and Gas Pipelines: Problems and Prospects’ I Strategic Positioning in the Oil Industry Middle East Journal, The Journal of Energy Literature, Insight Turkey, I Middle Eastern Studies, Energy Policy, I Energy Policy, Oil Diplomacy in the Twentieth Century, II The Observer, Devlet Sistem ve Kimlik, The Prize, Uluslararası Politikada Orta Doğu,