An international transport specialist details the “supposed” pros and cons of the Basra-Oqaba pipeli

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[size=52]An international transport specialist details the “supposed” pros and cons of the Basra-Oqaba pipeline[/size]

[size=45]Economic researcher and consultant in international transport economics, Ziad Al-Hashemi, revealed the most prominent positives and negatives assumed for the Basra/Aqaba pipeline project.[/size]
[size=45]Al-Hashemi said in a blog post, “The Basra/Aqaba pipeline - the (Hamal Ujh) project - has sparked controversy, confusion, and discussion, because of the positives, negatives, and challenges it may carry, and a point of view from other angles!”[/size]
[size=45]He continued, “In general, any project, whatever it may be, must be considered at the beginning, before entering into details, as an available and potential economic opportunity that can bring the economic and financial benefits that the country needs.”[/size]
[size=45]He added, “What helps in determining whether this project (any project) is useful or not, or successful or not, is the process of evaluating the project in its multiple stages - economic, commercial, market, technical, engineering, planning, legal, political, and others.” Through comprehensive and integrated feasibility studies by reputable advisory bodies, it studies the proposed projects objectively, professionally and independently, and ultimately presents its report and recommendations to decision-makers.”[/size]
[size=45]Al-Hashemi said, “With regard to the pipeline project (Basra-Aqaba), it is a project that also needs extensive research to determine its pros and cons, obstacles, or challenges that this project may face, including: -[/size]
[size=45]-Supposed positives of the project:[/size]
[size=45]- Diversifying export outlets to preserve (Iraqi energy security) from the impact of tensions at the entrance to the Arabian Gulf.[/size]
[size=45]It provides an opportunity for Iraqi oil to reach new target markets in Europe, helping Iraq diversify its customer base between the East and the West.[/size]
[size=45]It helps Iraq launch an energy supply chain starting from Basra and linked to refining, petrochemical or manufacturing factories in Egypt or Aqaba (which Iraq may own or participate in ownership) for the purpose of linking the products of these factories with demand and consumption markets in Europe / Africa / South America. .[/size]
[size=45]- Raising Iraq’s geo-economic value among other countries by entering Iraq as a competitor and holder of market shares in the markets of manufacturing industries and petrochemical products around the world.[/size]
[size=45]– Economic gains and sustainable and diversified financial returns to the Iraqi economy as a result of oil exports and its outputs, and participation and investment in international manufacturing sectors that depend on Iraq’s oil exports.[/size]
[size=45]- Meeting the needs of the electrical power generation stations of the Arab network, which it is assumed that Iraq will be one of the countries connected to it, and this may contribute to reducing the costs of production and consumption for Iraq.[/size]
[size=45]The pipeline project is a strategic project to raise the level of cooperation between Iraq, Jordan, and Egypt and enhance the level of inter-relations, whether political, security, or economic.[/size]
[size=45]It is beneficial for Iraq for the oil pipeline to pass through a regional (non-axial) state that will not exploit this pipeline to put pressure on Iraq in the future, and this is what ensures the smooth flow of Iraqi oil flows without obstructions.[/size]
[size=45]The supposed negatives and challenges, according to Al-Hashimi, are as follows:[/size]
[size=45]- Fears that the pipeline will be exploited to supply the entity with Iraqi oil, in response to supposed Western requirements or pressures.[/size]
[size=45]- Regional rejection or veto by some pivotal regional countries to hinder Iraq’s attempts to diversify oil export outlets, and thus stand against the establishment of any oil pipeline towards the West.[/size]
[size=45]- Security pressures and stability problems - an issue that still constitutes a major and real obstacle to the completion and success of any project.[/size]
[size=45]- Limited oil export capabilities through the Gulf of Aqaba due to the geography of the region and the small export port.[/size]
[size=45]- High construction costs and fears of opening new outlets for corruption inside and outside Iraq.[/size]
[size=45]The economic researcher pointed out that “the issue of evaluating such strategic projects is not based on the opinion of the street and the public, media wrangling, and emotional populist speeches!”[/size]
[size=45]He added, “But through a comprehensive feasibility study that identifies the positives, negatives, and challenges, and presents solutions and recommendations to address those negatives, leaving the final decision in the hands of the decision-makers after evaluating this project and determining its benefits or harms to Iraq economically, security-wise, and geopolitically.”[/size]
[size=45]He explained, “A final message to the naysayers and supporters - this project is beyond the capabilities of the Iraqi governments at this stage in the life of the Iraqi state, with regard to its evaluation, completion, good management, and control of the movement of its resources, in addition to this government has not taken concrete steps in the issue of launching Iraqi foreign projects that could “Benefiting from this pipeline’s oil.”[/size]
[size=45]He went on to say, “Therefore, it is expected that this project will remain on paper only (like other previous projects), and the government will be content with following the debates and media skirmishes surrounding this project and benefiting from reducing pressure on it in other vital and real files.”[/size]
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