Friday, June 20, 2008

Iraq Oil Negotiations

Note that the title of this post includes the word negotiations. The democratically elected Iraqi government is talking with American oil firms about giving them access to that country's oil. Strangely, given what a number of liberals have been wailing and gnashing their teeth about for several years now, there's no mention at all of US firms simply taking whatever oil they want.

In what should come as a final nail into the coffin of the canard that the USA went to war in Iraq to steal its oil, a number of companies are about to be awarded contracts to work the oil-fields there.

Four Western oil companies are in the final stages of negotiations this month on contracts that will return them to Iraq, 36 years after losing their oil concession to nationalization as Saddam Hussein rose to power.

Either someone high up has completely misunderstood the concept of invading a country and stealing its oil or *gasp* it's not true at all!

The whole world could benefit from the contracts as there is hope that Iraq's oil output can be raised from its current ceiling of 2.5 million barrels a day to 3 million in about six months time and, in a few years, to 4 million barrels a day. When Iraq's new oil fields are tapped production could increase to 6 million barrels a day.

Imagine the effect on oil prices of that combined with new wells being opened up in the US now. Ten years on, no doubt with oil under even more demand, fresh supplies could be coming online.

1 comment:

NotClauswitz said...

I don't know that it will matter much to the Conspiracy Wingnut Socialists, their worldview is so much shattered glass that they will see in it what they will, and announce the same...