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Crude Truths About Iraq

10/11/07, 11:23 am EST

From Jim Holt in the LRB (via the Daily Dish)

Iraq has 115 billion barrels of known oil reserves. That is more than five times the total in the United States. And, because of its long isolation, it is the least explored of the world’s oil-rich nations. A mere two thousand wells have been drilled across the entire country; in Texas alone there are a million. It has been estimated, by the Council on Foreign Relations, that Iraq may have a further 220 billion barrels of undiscovered oil; another study puts the figure at 300 billion. If these estimates are anywhere close to the mark, US forces are now sitting on one quarter of the world’s oil resources. The value of Iraqi oil, largely light crude with low production costs, would be of the order of $30 trillion at today’s prices. For purposes of comparison, the projected total cost of the US invasion/occupation is around $1 trillion.

Who will get Iraq’s oil? One of the Bush administration’s ‘benchmarks’ for the Iraqi government is the passage of a law to distribute oil revenues. The draft law that the US has written for the Iraqi congress would cede nearly all the oil to Western companies. The Iraq National Oil Company would retain control of 17 of Iraq’s 80 existing oilfields, leaving the rest – including all yet to be discovered oil – under foreign corporate control for 30 years.

‘The foreign companies would not have to invest their earnings in the Iraqi economy,’ the analyst Antonia Juhasz wrote in the New York Times in March, after the draft law was leaked. ‘They could even ride out Iraq’s current “instability” by signing contracts now, while the Iraqi government is at its weakest, and then wait at least two years before even setting foot in the country.’ As negotiations over the oil law stalled in September, the provincial government in Kurdistan simply signed a separate deal with the Dallas-based Hunt Oil Company, headed by a close political ally of President Bush.

How will the US maintain hegemony over Iraqi oil? By establishing permanent military bases in Iraq. Five self-sufficient ‘super-bases’ are in various stages of completion….


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Comments

Jed Clampett | 10/11/2007, 11:59 am EST

oh no, you are wrong tim. It has nothing to do with the oil at all and to even imply that is unpatriotic and supportive of the Terrorists.
Are you at all surprised that we’d be hated by these people when they realize how our companies take their natural resources and wealth and make themselves billions in profits while the people live in squalor, working 12 hour days for measly wages. Boy, what a proud spreader of ‘democracy’ and equality america has become.
LOMG LIVE THE HOMELAND!!

TT | 10/11/2007, 12:29 pm EST

and this surprises who?

Matthew Bowen | 10/11/2007, 1:03 pm EST

What are the odds of this bill being passed and what sorts of obstacles does it face? In what ways are the Iraqi government working to maintain sovereignty and control of their own oil supply? They were conquered by a ruthless western nation, and imperialism is all about the spoils of war. How independent is the Iraqi government from their occupiers? I think these are relevant questions and this column overlooks them. Yes, the American government is making movements to capture this tremedous oil supply – a well known fact – but the true shadowed matters of this issue lie in the American involvement in a so called “independent” government.

Charles | 10/11/2007, 1:34 pm EST

What’s even more disturbing is that I have to read about this on a music magazine’s website and not on cnn.com or the front page of the NY Times.

DELTA WILD MAN | 10/11/2007, 1:59 pm EST

Glad someone told me about this…
I mean,, it really opens up my eyes about everything..

We all need to march on Washington, let the people’s wishes be known!

All of us as Americans should demand that all that Iraq oil, be offered to other countries like Iran, North Korea, and the like.
That way, Nations that HATE America, and everything it stands for, can just bump the price of oil up to,, let’s say,, $19.78 a gallon for gas, and see how fast they can bring Americans to their knees..

Yes, We need to pay the price, just to let others reap the propits.

Never forget, without English and American help, the arabs would still be using that oil to cure the mainge on the backs of camels..

DELTA WILD MAN | 10/11/2007, 2:03 pm EST

DIDN’T ANYONE LEARN ANYTHING FROM WATCHING THE MOVIE ” DUNE “??

REMEMBER THE LOGIC OF ” IF YOU CAN CONTROL A THING? ”

In the movie,, everything depended on the ” SPICE “..

HE who controls the SPICE, controls the Universe…

Might think it’s funny,, but..

THEM WHO CONTROLL THE OIL,,CONTROLL WHO CAN AND WHO CAN’T,…..
WELL YOU CAN FILL IN THE BLANK,,

no surprise | 10/11/2007, 2:29 pm EST

No surprise that the european countries were upset that we went to war and forced them to stop the oil for food profiteering and arms sales to Iraq. No surprise that the nations that did support the invasion and occupation will get to share in the spoils of the war. No surprise that france and germany are now supporting bush, trying to get on his good side and get a piece of that pie as well.

Business as usual, I am jacks total lack of surprise.

Andrew | 10/11/2007, 2:53 pm EST

What’s scary about this is you have to give Cheney/Bush their due. In warped way they are truly safe-guarding our national interest. I hate this whole corporate system but its what we have and we would suffer the most if it fell apart. What we need now is responsible leadership to reduce debt and establish policies to rebuild our infrastructure in a sustainable manner before resources become too tight. Leadership will most likely have to come from outside of Washington–the people (consumers) are the most powerful source of change.

Jed Clampett | 10/11/2007, 5:16 pm EST

I can’t give them that because I recognize that they are not sefeguarding anything, they are making the world more polarized and tense, and if the other major players recognize this and realize they have to unite against us to stop our imperialistic ways in the same manner that they had to rise up to germany in the late 30s we are in big trouble. What’s worse, our economy has been so exposed to foreign influence by our ‘globalization’, that it would be quite simple to send it into a tailspin. The iranians demanding payment for OIL in euros is one way, the chinese getting rid of our bonds and investing in countries in africa and latin america would be another, hell, something as simple as opec reducing production for a long time would hurt us more than most.

DirtyDennis | 10/11/2007, 7:45 pm EST

I’m not sure, is this being proffered as news? It’s been long speculated that a sea of oil lies beneath Iraq. You can bet for sure a HELL of a lot of oilmen in Texas believe that.

Someone tell me again, why did Bushney invade Iraq?

common interest | 10/12/2007, 5:20 pm EST

well bush is a messianic nut that think god told him to go to war, but cheney is a bit more sound of mind, just no conscience. He has an interest in controlling the world along with the rest of his PNAC buddies. So the reasons differ between people, but in the end its still a common goal.

Reality | 10/13/2007, 1:57 am EST

REMEMBER THE LOGIC OF ” IF YOU CAN CONTROL A THING? ”

America controls oil through demand. We are simply the world’s most reliable customer. Prices are reduced through competition and accordingly, if the world’s oil producing countries were forced to compete for our demand prices would go much lower.
Our problem is that we are limiting choices by declining to import oil from countries like Iran.

Also, the oil lobby never wanted to invade Iraq for the oil because they knew the production system would require too much military protection to sustain it. Simply put, the cost wasn’t worth the benefit.

Leightbluemeur | 10/13/2007, 6:21 am EST

Sacré Blue! Oh now I get it. Now I understand why French president Nicolas Sarkozy is kissing up to the Bush administration. He wants the Hexagon to have its share of oil concessions.

C Co... aka I Smell Propaganda | 10/13/2007, 4:52 pm EST

If you didn’t know we were at least partly in Iraq for oil by now, you really don’t know much about anything.

Let me explain something: Humans need natural resources to live. Natural resources are limited. Humans are in competition for natural resources. Many wars have been fought for natural resources.

If the world ran on asparagus, people would fight wars over asparagus. But the world runs on oil doesn’t it?

The only reason liberals get so upset because over this is because they hate capitalism and they hate southerners, so the idea of a southern capitalist getting rich off of the world’s natural resources kills them. Nevermind that they are perfectly okay with liberal lawyers suing everbody to make themselves rich while the rest of America has to directly and indirectly pay the bill. They hate who they hate regaurdless of any over factors.

DirtyDennis | 10/13/2007, 5:15 pm EST

From the mouths of moderates, comes … hate-filled diatribes against the Left.

Matthew Bowen | 10/15/2007, 1:21 pm EST

Oil plays a major role – true enough. But the true grit motivations are about power. I think this war in Iraq is a paranoid attempt by men in shadows to offset the natural movement and transfer of power in the world.

If you look at history, global power i.e technological prowess, wealth, and then later colonialism, has always moved eastward. From Japan to Greece to Rome and Constantinople to the mongols to european powers to the “New World.” Just as seasons change, the global balance circulates like an ocean current. Somebody is looking to cease this natural order.

Matthew Bowen | 10/15/2007, 1:22 pm EST

haha, that was some good discrediting of myself. I meant that power moves westward.

DirtyDennis | 10/15/2007, 7:10 pm EST

While your examples don’t exactly support your premise, let’s just go along with the Westward Movement for a moment. How does war in Iraq alter that movement?

blood for oil of olay | 10/16/2007, 6:54 am EST

Bowen-
History is not orderly. It does not move in a direction, geographic or otherwise. It only looks that way because our monkey-minds like to impose patterns and order on things we don’t understand.

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