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WASHINGTON DC - Iraq must maintain momentum toward energy independence and avoid complacency amid growing regional instability and risks to oil exports, former US assistant secretary of state for energy resources Geoffrey Pyatt said Tuesday.
Speaking on the sidelines of the Iraq Dialogue conference hosted by the Atlantic Council, Pyatt told Rudaw the Iraqi government under former Prime Minister Mohammed Shia’ al-Sudani had made “real progress” toward reducing Iraq’s dependence on Iranian energy and improving the country’s investment climate.
“Whoever is the next prime minister will have a huge stake in preserving and sustaining and accelerating that success,” Pyatt said.
The Iraqi parliament on Thursday gave its vote of confidence to Ali al-Zaidi, the country’s new premier, approving his government program and 14 ministers of his cabinet.
The former US official said Iraq’s energy sector is directly tied to the credibility and stability of the Iraqi state, warning that disruptions to Iraqi oil exports create serious fiscal risks for Baghdad.
“The shutdown of so much of Iraq’s oil production creates a fiscal risk, which is real,” he said.
Pyatt stressed the importance of gas development and energy diversification, arguing that Iraq must better utilize its natural resources rather than rely on imports.
“Focus on the fundamentals, first capturing gas,” he said, adding that Iraq should improve the use of its existing resources and recognize the strategic importance of the gas sector for both Baghdad-Erbil relations and Iraq’s electricity supply.
Asked whether Iraqi and Kurdish officials understand the importance of achieving energy independence from Iran, Pyatt said recent regional tensions and the closure of the Strait of Hormuz had increased awareness of the issue among Iraqi leaders.
He pointed to a recent meeting with Kurdistan Region Deputy Prime Minister Qubad Talabani on the sidelines of the 11th Delphi Economic Forum, in Greece, saying Kurdish officials appeared highly focused on energy security and diversification.
“The war with Iran and the closure of the strait has focused minds on the need to really double down on energy independence and energy security,” Pyatt said.
Pyatt also addressed Washington’s decision not to renew sanctions waivers previously allowing Iraq to import Iranian energy, saying reducing Iran’s “malign energy influence” has remained a bipartisan goal across multiple US administrations.
At the same time, he stressed that the United States does not want instability in either Iraqi or the Kurdistan Region. “We want to see an Iraq which is strong, prosperous, sovereign, and democratic,” he said.
On relations between Erbil and Baghdad, Pyatt said energy remains at the center of disputes over revenue sharing, budget transfers, and oil exports, but argued the Kurdistan Region possesses major advantages due to its oil and gas reserves and experienced energy sector.
“Kurdistan has a huge advantage in terms of its geological resources,” he said, highlighting the Kurdistan Region’s focus on energy transition, sustainability, and investment.
Pyatt praised companies operating in the Kurdistan Region, including US-based Chevron, ExxonMobil, HKN Energy, and the United Arab Emirates-based Crescent Petroleum, saying foreign investment remains critical for improving efficiency and developing Iraq’s domestic energy sector.
He also highlighted the Region’s strategic pipeline connection to Turkey as an important alternative export route amid instability around the Strait of Hormuz.
“KRG is well positioned to play the diversity game,” he said, noting the importance of expanding pipeline infrastructure and diversifying export routes for Iraqi oil and gas.
Asked whether Baghdad fully recognizes those advantages, Pyatt said much would depend on Iraq’s next government and future energy ministers.
“I hope very much that the next energy minister and next power minister recognize the opportunities there,” he said.
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