Posted by: Tony Carson | 17 October, 2009

Maybe it wasn’t about the oil after all

Did the US really get shut out of the Iraqi oil patch?

Today, Iraq’s cabinet gave contracts to Britain’s BP and China’s CNPC to develop the giant oilfield in Rumalia.

According to the BBC, the contracts will increase production in the oil field by 2bn barrels a day, almost tripling output at the 17bn barrel field. Currently, Iraq’s daily output is 2.4bn barrels, due, among other things, to lack of investment.

Thirty two companies – including Shell, Exxon, BP and Total – bid for contracts to develop six oil fields and two gas fields in June’s televised auction, Iraq’s first big oil tender since the invasion of 2003. But most of the bidders withdrew at the last moment, saying the terms on offer were unfavourable.

So, apologies, George, sorry, Rummy, I really did think it was all about the oil. Still do.

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Responses

  1. It was about oil, but also about ideology. They thought they could transform the entire region by force. Silly buggers.

    It is immaterial whether or not a U.S. or U.K. company gets oil rights or not — increasing world supply drops prices on a world wide basis. Freeing up oil / increasing supply in one corner of the globe reduces supply pressures elsewhere. Either way it benefits the U.S. because they (and we here in Canada) are the most profligate users of petro energy on the planet.

    I wish we could be smug Canadians on this issue but we can’t. Sadly.


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