Article

2007-01-08 Iraq

Western firms set to profit from Iraq oil

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Posted by Fred 2007-01-08 00:00|| || Front Page|| [2 views since 2007-05-07] Top

#1 But that is twice the industry average for such deals, said the report.

Of course that 'average' includes a lot of places where the locals aren't shooting up the place...

Posted by PBMcL 2007-01-08 00:23|| 2007-01-08 00:23|| Front Page Top

#2 Arrgh. Finally, the spoils.

Posted by SpecOp35 2007-01-08 00:38|| 2007-01-08 00:38|| Front Page Top

#3 #1. Good point. The Iraqi oil fields are far from the average oil field.

We have been hearing from the left that price of oil is so high because bush started a war so his friends could make more money. Having western companies pumping Iraqi oil will probably bring stability as well as more oil to the market, bringing the cost of oil down. Once that happens, we will get to hear from the left about how American companies are stealing oil from Iraq so they can make money selling I
us cheap gas.

I can hardly wait.

Posted by Mike N. 2007-01-08 00:50|| 2007-01-08 00:50|| Front Page Top

#4 S: Arrgh. Finally, the spoils.

Don't count your chickens. There's no guarantee these companies will find any oil. The Independent says exploitation. It's more like exploration. Exploitation comes *after* you find the oil. If it were that easy, Saddam would have found it already.

Posted by Zhang Fei 2007-01-08 01:38|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2007-01-08 01:38|| Front Page Top

#5 Besides which, there is the 30 years of neglect by Saddam and the Baathists to make up for in the fields. That rehabilitation work will take at least 3-5 years but will bring the present Iraqi fields back up to full production. Since both Saudi Arabia and Iran are reporting declining production recently, the idea that the Iraqi fields can be brought back to their potential is a very exciting prospect. It will also have major geopolitical ramifications since Iraq will have the population, the oil, the ancillary economy, and the US support/weapondry to be the regional power there.
Major counterbalance to Iran in the making, and an important step in the diminution of the Saudi Royal Family.
And besides, when has the flipping Left ever been happy about a capitalist success story? So sure, they will bitch and whine about the profits being enjoyed by the Western oil companies - but the Iraqi public will be the ones really benefiting from the arrangement, since it appears that some sort of National Oil Trust Fund will be in the offing for Iraq. Something along the lines of the oil fund that Alaska has, where Alaskans get a check every year from the oil profits. Of course the Left will also bitch about that, since the Shia and Kurds are the two groups with all the best oil fields in their zones.

Posted by Shieldwolf 2007-01-08 04:44|| 2007-01-08 04:44|| Front Page Top

#6 --- The Islamic fascists have been bitching & whining about the sale of Islamic oil to any infidel nation for decades now, equating this sale with robbery. Their ultimate aim is subjugation of the infidels and collection of jizya. The infidel supporters of the Jihad and fellow travelers of Islam all over the world will regularly be issuing headlines like "Western firms set to profit from Iraq oil" in order to push their agenda against property, profit, government by consent of the governed, etc., goals orphaned by the fall of the Soviet Union.
--- If Muslim nations had never had a capacity to export oil, their fascists would never have had resources other than persuasion, and jihadis would never have gotten to be a problem for the rest of the world. This dilemma will not be resolved until 1) Muslim oil becomes of little importance to the world economy (so many ways this could happen, none of them quick or painless) or 2) the Jihad is neutralized. The Jihad is fueled by oil money. The world economy runs on oil.
--- It is highly likely there is a lot of oil yet to be discovered in Iraq since Saddam's regime was mostly interested in plunder and oppression. That's why foreigners are willing to invest huge sums in exploration. Oil experts feel profits are highly likely, even more so now that Arabian and Iranian oil production is falling off and the price per barrel inevitably rises. If Iraq ever stabilizes, it could become rich far beyond its wildest dreams, becoming the largest oil exporter in the world as other exporters fall by the wayside. The enemies of the West will find some way to bitch about that outcome, should it come to pass, I'm sure.

Posted by Anguper Hupomosing9418 2007-01-08 09:57|| 2007-01-08 09:57|| Front Page Top

#7 Article: Supporters say the provision allowing oil companies to take up to 75 per cent of the profits will last until they have recouped initial drilling costs. After that, they would collect about 20 per cent of all profits, according to industry sources in Iraq. But that is twice the industry average for such deals, said the report.

Sounds like the Independent is confusing revenues with profits. Before the participating oil companies recoup their drilling costs, they haven't made any profits yet. Profit = revenue - cost. I think the Independent and sources within the Iraqi government are operating under the impression that billions of dollars of foreign investment in oil exploration ought to be considered a gift to Iraq. The fact is that the Iraqi government hasn't done any drilling on its own because it can't or won't come up with the billions required to do it. I think some of these Iraqi officials are also unhappy that an opportunity to steal money has been taken away from them.

Posted by Zhang Fei 2007-01-08 11:17|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2007-01-08 11:17|| Front Page Top

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