Environmentally assisted cracks in line-pipe steels are initiated either as a result of stresses in combination with environmental effects, as in stress corrosion cracking (SCC), or as a result of trapped hydrogen in the steel, as in hydrogen-induced cracking (HIC). To understand better the mechanism of the crack initiation process, key metallurgical and environmental elements that can affect the cracking phenomena were investigated and are reviewed in this paper. The complexity of both cracking phenomena results from the dependence of SCC and HIC on multiple metallurgical, mechanical, and environmental parameters that may all influence both crack initiation and propagation; e.g., composition, microstructure, and nonmetallic inclusions in the steel, applied stress, water chemistry in the field, and ionic concentrations in the groundwater near the pipe surface to name a few for SCC. In addition, for HIC phenomena, one can add the concentration of hydrogen sulfide (H2S) in the fluids transported in the pipe as well as concentration of CO2, pH, etc. In this paper, cracking of linepipe steels is analyzed critically, with particular attention to the crack initiation process. The paper is divided into two parts: The first part covers SCC and the second covers HIC.