ASSESSMENTS

U.S. Energy Influence in Iraq

Feb 9, 2012 | 12:54 GMT

Engineers at the Khurmala oil field south of Arbil, Iraq

SAFIN HAMED/AFP/Getty Images

Summary

On Jan. 31, Baghdad withdrew its opposition to a deal between ExxonMobil and the Kurdistan Regional Government, a move that reflects the conflicts between and among Iraq's various political actors. Energy negotiations with the United States are one arena where the al-Maliki government has been forced to make significant concessions recently. Iran typically holds the upper hand when it comes to influencing Baghdad and controlling Iraq's sectarian conflicts, but it cannot compete with the investment capital and technologies that U.S. firms can bring to bear.

The United States, Kurds and Sunnis benefit from Baghdad's need for investment into its oil production....

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