With last week's headlines dominated by Egypt's presidential elections, negotiations on Iran's nuclear program, and fresh atrocities in Syria, it would have been easy to miss a major development out of Iraq that in time could have equally momentous consequences for the future of the Middle East. I'm referring to the announcement that the Kurdistan Regional Government (KRG) and Turkey have agreed -- in principle at least -- to build a series of pipelines that will allow the Kurds to export oil and gas directly to Turkey and, from there, onward to the rest of the world. The U.S. should be paying close attention.
Until now, the KRG's ability to develop its substantial energy riches has been held hostage to its dependence on export pipelines controlled by the central government in Baghdad. To get any oil to international markets -- and, in turn, to get its fair share of revenue from those sales -- the KRG has largely been at Baghdad's mercies.
Iraq's oil ministry has sought to exploit its position of strength to coerce concessions from the KRG on a long-stalled national hydrocarbons law. In particular, Baghdad has demanded veto power over exploration and development contracts that the Kurds are negotiating with international oil companies. At least 40 such contracts have already been signed over the central government's vociferous objections -- including a breakthrough agreement late last year with the global energy giant, Exxon Mobil.
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