U.S. Shows Strong Interest in Iraqi Oil

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Seeking to bolster regional influence through capital means, U.S. President Donald Trump suggested U.S. energy companies were heavily active in Iraq. While interest is burgeoning, it is Iraqi state-run firms that are currently doing most of the work.

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Small U.S. Footprint -- for Now

It's state-run energy companies in Iraq that are doing much of the heavy lifting with some of the largest investments, although U.S. President Donald Trump said it's largely American companies doing the work. According to Industrial Info Resources data, there are 38 active Oil & Gas Production and Pipeline projects in Iraq, with a total investment value of US$14.45 billion.

On Tuesday, Trump said ahead of a meeting in Washington D.C. with Iraqi Prime Minister Ali al-Zaidi that "a lot of deals" could be had for U.S. energy companies in Iraq.

"A lot of oil is coming out, and the American companies are doing it -- mostly American companies now," Trump said.

Iraq has largely been unable to export its crude oil for much of the year due to fighting in the Middle East. At this time last year, Iraq was the fifth-largest crude oil supplier to the U.S. economy, with about 230,000 barrels per day.

Iraq's government-owned State Company for Oil Projects, controlled by the Ministry of Oil, is behind a $4 billion project to rehabilitate and reconstruct some 500 miles of 30-inch pipe on the Kirkuk-Baniyas network to carry 300,00 barrels of oil per day (bpd) from Kirkuk in the semiautonomous Kurdish north. The Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Production Project Database offers a detailed report on the on the pipeline project.

That would support trade diversity amid the tacit closure of the Strait of Hormuz. Elsewhere, investments had been hindered by government fractures in Iraq, though the May appointment of Bassim Mohammed Khudiar as the nation's oil minister may reverse that.

"The main objective is to make Iraq an attractive investment environment for all international companies, especially from Europe and the U.S.," he said after his appointment. For more on that, see July 1, 2026, article - Iraq Is Hot Spot for International Oil Production Investment.

Despite the current lack of a major U.S. footprint in the Iraqi energy sector, the prime minister said he's looking to diversify and expand the nation's capabilities during his tenure in office.

"We have directed the Ministries of Oil, Electricity and Communications to give priority to reputable American companies working in energy, telecommunications, technology, and development," he was quoted by the Reuters news service as saying ahead of his visit with Trump.

For related information, see July 1, 2026, article - Conflict in the Middle East has spilled over to impact the global energy sector. Drone strikes on the Erbil Refinery and the Lanaz Refinery, both run by Bahrain-based Kar Group, impacted operations in Iraq, though they've since recovered.

Iraqi production is down as well. Secondary sources reporting to economists at the Organization of the Petroleum Producing Countries put Iraqi production at 1.97 million bpd for June, compared to the full-year 2025 average of 4 million bpd.

Data from Industrial Info show France's TotalEnergies is behind the one of the largest foreign-operated energy projects in Iraq. It's part of a group working to install a gas-processing plant that can handle associated gas from the south of the country in fields such as West Qurna. Joined by China Petroleum Engineering & Construction Company, the project has a total investment value of $1.6 billion.

Chevron is among the few U.S. companies currently working in Iraq, after acquiring an interest in the West Qurna field from Russian energy company Lukoil. Others such as BP, Italian energy company Eni and various Chinese entities are dominating the Iraqi landscape.

By the Numbers

• 1.97 million bpd from Iraq in June
• 4 million bpd for full-year 2025, showing the impact from the war

Key Takeaways

• State-run oil companies dominate the Iraqi landscape.
• Trump wants to exert commercial influence over the region.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).