Foreign Policy

The development delivers a blow to political transition talks the United States and Russia plan to lead

Turkey has reportedly struck a deal to explore for oil in northern Iraq’s semi-autonomous Kurdish region in a move that’s likely to rile the United States and Iraq.

Turkish Prime Minister Recep Tayyip Erdogan announced Tuesday that its state-owned oil firm will work with U.S. giant ExxonMobil Corp. to develop oil in the Kurdish-run area, according to media reports. Erdogan said Turkey would pursue separate arrangements with the Kurdistan Regional Government (KRG).

The news could make for a tense meeting between Erdogan and President Obama, who are scheduled to meet this week in Washington, D.C.

Sen. James Inhofe (R-Okla.) will introduce legislation Wednesday calling for increased drilling on U.S. federal lands to displace Iranian oil on the world market, according to a copy of the bill obtained by The Hill.

The bill requires the president to establish enough “Iranian Oil Replacement Zones” on federal lands to produce 1.25 million barrels of oil per day — approximately the amount Iran exports every day.

An Inhofe aide told The Hill that would divert oil the U.S. imports from Saudi Arabia and elsewhere to nations that still buy Iranian crude, such as China, India and Japan. The goal is to give President Obama wiggle room to enforce full sanctions on Iranian oil by ending waivers awarded to some nations. 

Acting Energy Department (DOE) Secretary Daniel Poneman said the Obama administration is not backing down from requests that India eschew solar policies that it says might violate international trade rules.

At issue are Indian requirements that solar energy firms buy all inputs from domestic producers. The subcontinent says that will help grow its solar industry, but the U.S. contends local-content requirements are outlawed by the World Trade Organization (WTO).

“At this point our view is, we are in a discussion with India. Our views on … local content are clear, and we’re hoping we can work through this,” Poneman told The Hill on Tuesday after speaking at the U.S.-India Energy Partnership Summit in Washington, D.C.

The White House released a national strategy Friday for balancing energy- and minerals-development and conservation in the Arctic.

The document contains three policy aims — advancing national security interests, responsibly managing the Arctic ecosystem and bolstering international relationships. The White House will develop an implementation plan for the interagency effort in the coming months, a senior administration official said during a media call.

The Arctic issue is politically sensitive for President Obama, who is juggling demands from green groups to address climate change while also encountering pressure from Republicans and the oil-and-gas industry to ramp up drilling.

Menendez (D-N.J.) introduced legislation on Monday that would provide arms to vetted opposition groups.

The House will consider — and likely pass — a bill this month to expedite construction of the Keystone XL oil sands pipeline, Majority Leader Eric Cantor (R-Va.) said in a Friday memo.

“In line with our underlying principles for legislation and our goal of helping make life work for American families and businesses, I expect the House to have a full legislative agenda in May. We will push the administration to finally approve the Keystone pipeline delivering much needed jobs and lower energy prices for families,” the memo said.

The legislation would circumvent President Obama’s authority to issue a cross-border permit needed to complete Keystone’s northern leg.

The Obama administration will likely approve a limited number of politically controversial natural gas export projects despite some fears on Capitol Hill about a massive expansion, according to a Moody's report released Wednesday.

It said the Energy Department (DOE) would likely approve three out of the 20 applications under review for exporting natural gas to nations that lack a free-trade agreement with the United States. One such application already has received the go-ahead from the DOE.

Those projects have alarmed some lawmakers, who are tussling over whether to allow a major expansion of natural gas exports.

The impact of natural gas exports on everything from foreign relations to jobs will get a look in the House during a May 7 hearing, The Hill has learned.

The House Energy and Commerce Subcommittee on Energy and Power will hold the 10 a.m. hearing, committee spokeswoman Charlotte Baker told The Hill. Witnesses for the hearing have not yet been finalized, she said.

The hearing will sharpen the focus on the geopolitical effects of expanding natural gas exports.

Canadian Natural Resources Minister Joe Oliver is touting the Keystone pipeline to congressional energy leaders and the State department.