Office of the Historian

257. Memorandum Prepared in the Department of the Interior1

Washington, August 1957.

PROPOSAL FOR NEW MIDDLE EAST OIL PIPELINE SYSTEM

Comments of the Office of Oil and Gas, Department of the Interior

1.
At its meeting on August 13, 1957, the NSC Planning Board discussed the problem of a possible new Middle East petroleum pipeline system as outlined in the State Department memorandum of August 1, 1957, with attachments,2 and invited Government agencies concerned to submit such additional comment or information with respect to the construction of such a pipeline system as they may deem appropriate.
2.
It may be helpful to submit at this time the following brief comments, particularly because recent events in Syria may make it desirable to consider in the near future some aspects of this proposal. A detailed analysis of this and other Middle East petroleum problems has been begun in connection with bilateral U.S./U.K. discussions that have been in progress for some time. Although it is anticipated that this analysis will materially clarify many parts of the Middle East oil transportation problem, there are some fundamental aspects of a major pipeline to move Middle East oil to Western markets that may be helpful now to mention.
A.
The Kirkuk field in Iraq is located several hundred miles from tidewater; has reserves capable of supporting a production rate much above the 500,000 plus B/D capacity of the Iraq pipeline system; its oil must seek a market in the West.
B.
A large capacity pipeline from the Kirkuk field to a deep water Mediterranean terminal in Turkey would provide a very useful new outlet for Kirkuk oil with added insurance against disturbances in Syria in particular that have in the past been very expensive for Iraq.
3.

Construction of a pipeline from Kirkuk through Turkey to the Mediterranean would be a problem relatively much more simple than the entire pipeline system described in the State Department memorandum. Its functions would be of obvious value to the West, to Iraq, and to Turkey. It, therefore, would appear eligible for support under any Middle East conditions that can be foreseen.

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This pipeline would involve basic political problems similar to those of the complete system but would be much more limited in scope. This part of the system would likewise provide an excellent occasion for exploring the political problems involved.

4.

The complete pipeline system would draw on the crude oil reserves at the head of the Persian Gulf as well as on those of Northern Iraq and Turkey. In addition to the complex political problems, there are other aspects which must be examined in the light of our national security. These include the question of whether undue reliance might be placed on pipelines; the extent to which construction and use of this pipeline might inhibit normal expansion of the tanker fleet; comparative security of the pipeline, the Suez Canal, and other tanker routes; costs and economics of the pipeline relative to use of large tankers on alternate routes.

These complex considerations can be defined with acceptable accuracy for planning purposes only after completion of the extensive and fully informed appraisal of all factors involved which is now underway.

5.
In view of the circumstances, it is suggested that:
a.
Consideration be given now to the question of whether support should be given to the Kirkuk–Mediterranean line via Turkey.
b.
Consideration of the complete system be postponed until the detailed analyses now under way nave been completed.
  1. Source: Department of State, S/P–NSC Files: Lot 61 D 167, Middle East Petroleum Pipeline System, Construction of; NSC 5722. Secret. Circulated under cover of an August 26 memorandum from Boggs to the NSC Planning Board for use in connection with its discussion of this subject on August 30. (Ibid.)↩
  2. Attached to Document 254.↩