Iraq invasion was for oil - confirmed

What many have long suspected can now be seen: The invasion of Iraq was about oil and the Iraqi parliament is soon to pass a law allowing western companies extraction rights - the first since Iraqi oil was nationalised in the 70's.

The 'IoS' today reveals a draft for a new law that would give Western oil companies a massive share in the third largest reserves in the world. To the victors, the oil? That is how some experts view this unprecedented arrangement with a major Middle East oil producer that guarantees investors huge profits for the next 30 years

So was this what the Iraq war was fought for, after all? As the number of US soldiers killed since the invasion rises past the 3,000 mark, and President George Bush gambles on sending in up to 30,000 more troops, The Independent on Sunday has learnt that the Iraqi government is about to push through a law giving Western oil companies the right to exploit the country's massive oil reserves.

And Iraq's oil reserves, the third largest in the world, with an estimated 115 billion barrels waiting to be extracted, are a prize worth having. As Vice-President Dick Cheney noted in 1999, when he was still running Halliburton, an oil services company, the Middle East is the key to preventing the world running out of oil.

Now, unnoticed by most amid the furore over civil war in Iraq and the hanging of Saddam Hussein, the new oil law has quietly been going through several drafts, and is now on the point of being presented to the cabinet and then the parliament in Baghdad. Its provisions are a radical departure from the norm for developing countries: under a system known as "production-sharing agreements", or PSAs, oil majors such as BP and Shell in Britain, and Exxon and Chevron in the US, would be able to sign deals of up to 30 years to extract Iraq's oil.

PSAs allow a country to retain legal ownership of its oil, but gives a share of profits to the international companies that invest in infrastructure and operation of the wells, pipelines and refineries. Their introduction would be a first for a major Middle Eastern oil producer. Saudi Arabia and Iran, the world's number one and two oil exporters, both tightly control their industries through state-owned companies with no appreciable foreign collaboration, as do most members of the Organisation of Petroleum Exporting Countries, Opec.

Critics fear that given Iraq's weak bargaining position, it could get locked in now to deals on bad terms for decades to come. "Iraq would end up with the worst possible outcome," said Greg Muttitt of Platform, a human rights and environmental group that monitors the oil industry. He said the new legislation was drafted with the assistance of BearingPoint, an American consultancy firm hired by the US government, which had a representative working in the American embassy in Baghdad for several months

news.independent.co.uk...

Worth reading the entire article so you can see how the Iraqis are really getting screwed and why our troops are dying.

Good find. Yes it does look like Iraq is about to be ripped of by the major oil companies, and it will go down in history as suspicious that the only pillar of Iraq’s government that was protected from looting by U.S soldiers in the days immediately following the occupation was the Iraq Oil Ministry.
It’s also a shame that Tony Blair’s Iraq oil trust fund idea for the Iraqi people never got any furthermore than his deceptive mouth.

However I'm sure the Resistance will be able to target pipelines as they already have done on numerous occasions. I feel sorry for the brave men and genes that will be lost by their sacrifice, but by doing this a little they will be able to save Iraq’s oil wealth future; till the day when a proper secular government may rule Iraq once again.
Besides it’s their oil, they have every right to blow it up; and save it from this current barbaric Shiite, terrorist and extremist infiltrated government. (I distinguish between religious terrorists and resistance to the occupation).

The best thing we could have done (if we had wanted Iraq’s oil) was a cut a deal with Saddam or (today) someone like him. It would have saved billions on military equipment costs, and would be safe if we had lifted all sanctions accept those on weapons. However I guess it would deny financial benefits to particular industries, and hence the morally corrupt Western politicians who benefit, or indeed invest in them.

Liberal1984, isn't the targeting of the pipes a sure way to keep the new govt. from having control of Iraq, as well as able to retake power? I'm certain thats what the insurgency mostly Sunnis has been doing ever since they were removed from power and Kurds and Shiites have stepped in.

But in a country more dependent than almost any other on oil - it accounts for 70 per cent of the economy - control of the assets has proved a recipe for endless wrangling. Most of the oil reserves are in areas controlled by the Kurds and Shias, heightening the fears of the Sunnis that their loss of power with the fall of Saddam is about to be compounded by economic deprivation.

The Kurds in particular have been eager to press ahead, and even signed some small PSA deals on their own last year, setting off a struggle with Baghdad. These issues now appear to have been resolved, however: a revenue-sharing agreement based on population was reached some months ago, and sources have told the IoS that regional oil companies will be set up to handle the PSA deals envisaged by the new law.

[edit on 8-1-2007 by deltaboy]

A big piece of the Iraq strategy was always oil. Not stealing, it but ensuring it's continued to flow at the needed volume, and at a realistic price. Regardless of what the US govt stated, this should have been understood by all, and I think it was by most.

What this deal boils down to:

It is also understood that once companies have recouped their costs from developing the oil field, they are allowed to keep 20 per cent of the profits, with the rest going to the government. According to analysts and oil company executives, this is because Iraq is so dangerous, but Dr Muhammad-Ali Zainy, a senior economist at the Centre for Global Energy Studies, said: "Twenty per cent of the profits in a production sharing agreement, once all the costs have been recouped, is a large amount." In more stable countries, 10 per cent would be the norm.

I don't think 20 percent is unreasonable. I guess we'll see what the Iraqi Parliment thinks when they vote on this (or push it through as the obviously biased article states.

Keeping 80% of all the profits from a commodity that cost you nothing to create, extract, process and distribute seems like a pretty good deal to me, and after all it's only for 30 years.

If the Iraqis thnk they can get a better deal it's their prerogative to decline this one and pursue another. Or they could build and maintain the infrastructure themselves and keep all the profit.

But I suppose there is a possiblity that all the ministers have been bribed or threatned already.

In my opinion it’s a good thing to keep the current Shiite dominated, sectarian divided, terrorist infiltrated and pro-Iranian Iraqi democracy as far away from power as possible. That’s only my opinion, but it shared by enough Iraqis to make it’s as good as granted.
What I was referring to when I said…

by doing this a little they will be able to save Iraq’s oil wealth future; till the day when a proper secular government may rule Iraq once again.

Is my humble belief that Iraq will ultimately be dominated by a secular figure like Saddam because (in the long term) we simply cannot afford an extension of Iran (virtual or literal). Therefore it’s my belief disrupting Iraqi oil production today; is also saving it for this better (coming) future.

Now if President Bush is a threat a secular Iraqi dictatorship then he is also a threat to Israel. It might not be intentional but for Christ’s sake how long ago was it when we were talking about going war with Iran? Now it’s “we need those little buggers to help keep the Iraqi democracy running” And this is true; (as long as Iraq is a democracy of course).

I suppose I don’t care too much; because at the end of the day I don’t live in Israel (or Iraq for that matter).
But it’s a shame to think that little outpost of Western civilisation in the Holy Sand could all be put to waist in a glass firing competition with Iran. I mean it has taken a lot of Western investment to get to where it is now, and even changed our political direction in the Middle East (like turning us against the Arab Ba’thist political movement when in actual fact we should have been supporting it (for Israel’s sake and our own).

However I guess nothing’s likely to happen too soon; as if Ayatollah (wanna be nuclear) really wanted to wipe Israel of the map; he could order the firing of some of those biological weapons Iran already has (and has had for a very long time too).
But Iran’s coming dominance will almost be guaranteed to be what Saddam would have said is “a force for backwardness”. By that I mean the spread of beliefs like women should be stoned to death for adultery and the like, and I mean putting Israel into a very tight little corner (though they aren’t half deserving like with the stupid things they’ve done in Lebanon; and to some degree Palestine) (Crumbs perhaps it’ll even be beneficial? Well they do say every cloud has a silver lining).

It has been always for oil, at least one of the benefits to invaded that country, lets not forget that Cheney and Rumsfeld were part of the so call, Energy task force that is to over see how to best profit from oil in Iraq.

The Iraqi people do not want their natural resource to fall in the hands ot the west and Uk companies and is been fight on that matter.

Not sane country will give away their rights to their natural resources for more than a generation.

So every time that a pipe in Iraq gets blown away just remember why the Iraqis are fighting against.

That Iraqi oil is going to be very bloody and costly to the Americans oil barons.

Now wonder Bush wants more troops in Iraq . . . to protect the private interest that will be moving in when they get to have that contract.


[edit on 8-1-2007 by marg6043]

yep, it was for oil, no question. But that wasn't the only reason.

Yep. Billions of dollars in new tax revenue for America. Iraq still gets massive amounts of money from the deal however.. they still own the oil, and they will use the billions to pay for free health care, free education, no or at least low taxes and to pay for parts of the rebuilding.

Does anyone know though if Iraq will remain a member of OPEC?

Originally posted by Rockpuck
they will use the billions to pay for free health care, free education, no or at least low taxes and to pay for parts of the rebuilding.

Oh my!!!!!! just like here in the US, we the people own our oil and we get everythign Freeeee.

I love our free health care system, don't you

Dream on.

Originally posted by marg6043
It has been always for oil, at least one of the benefits to invaded that country, lets not forget that Cheney and Rumsfeld were part of the so call, Energy task force that is to over see how to best profit from oil in Iraq.

Well its oil in need of rebuilding a nation ain't it? After all, without a stable economy there would be no successful rule of a country, true?

The Iraqi people do not want their natural resource to fall in the hands ot the west and Uk companies and is been fight on that matter.

Not sane country will give away their rights to their natural resources for more than a generation.

Of course the Iraqi people don't like having their resources fall into the hands of corporations and companies. But then we have foreign companies and corporations exploiting America's natural resources. Its a globalized world.

So every time that a pipe in Iraq gets blown away just remember why the Iraqis are fighting against.

How does blowing away a mosque or at a market that kills women and children intentionally represents what the insurgency is fighting for? Trying to prevent Iraqi blood coming into our gasoline tanks?

That Iraqi oil is going to be very bloody and costly to the Americans oil barons.

Its going to be costly to the Iraqi people since the economy has been in a downturn. No oil revenues for the Iraqi govt. to spend on for the Iraqi people. Rebuilding infrastructure, military forces, etc.



[edit on 8-1-2007 by deltaboy]

[edit on 8-1-2007 by deltaboy]

Delta I am not even going to argue your post, because time is and have been in my side.

Everything I have foreseen of this war has turned into truth.

And at the end the emerging elite will benefit from that oil along with the oil barons that will have more blood in their hands.

This is all for money, profits and greed.

The Iraqi people will get nothing but more grief.

And this time our own nation will be behind of what the people in that country will suffer under, while protecting corporate power and the new emerging elite.

I predict a coup by the Iraqis against their own government.

Time, is in my side . . .

Uhuh, maybe you like to read the history of guerilla warfare and terrorism from around the world that has lasted for decades where victory goes to either side depending on the situation that the victor has manage to overcome.

And if you are going to depend on time to back up your claims...

Though I agree the war was about resources. Just because these oil producers are signing contracts to extract oil means nothing really...every supplier of oil allows big oil to extract oil (and they get a share of the profit).

I don't believe it is all about oil. Let's not forget that we in Iraq stand between Israle... allies And the upcoming disarming of Iran of Nucular Weapons. Let's say these don't well and Israle strikes. Who is conviently in between? Our son's and daughters, soldiers, aliies of Israle. Yes the Uncle Sam will step in and aline to then take Iran. Very possible, who knows if so I hope North Korea who we know to have nuclear capabilities doesn't aline with there allie Iran! Ponder there are many steps in a military movement and a supposed coverup!

[edit on 8-1-2007 by HDLady]

maybe you like to read the history of guerilla warfare and terrorism from around the world that has lasted for decades where victory goes to either side depending on the situation that the victor has manage to overcome.

Right deltaboy I don’t know what that book says but I would love to see how the Iraqi government is going to overcome…
a. Themselves
b. People shooting reconstruction workers
c. People kidnapping reconstruction because they have money
d. The (long term) threat that the West may want to re-invade Iraq because it has sided with Iran.

I reckon if the Iraqi government didn’t have to overcome the first part (them squabbling selves) Iraq might have hope.
But until Iraq has a more functional government I reckon that oil will be better in the ground.
Partly because of the massive wages required by contractors, partly because it’s a tight deal, partly because anything that gets built has habit of getting blown up, and partly because a lot of the oil wealth is no longer making its way into the hands of Iraqis who most need it anyway.

And if the Iraq government wasn’t so corrupt it was serious about distributing some oil wealth; then why did it end the subsidisation of petrol, or subsidisation of food for that matter?

Originally posted by marg6043

Originally posted by Rockpuck
they will use the billions to pay for free health care, free education, no or at least low taxes and to pay for parts of the rebuilding.

Oh my!!!!!!

just like here in the US, we the people own our oil and we get everythign Freeeee.

I love our free health care system, don't you

Dream on.

I hate it when people comment on something they know nothing about.

Read up on the middle east PLEASE FOR CRYING OUT FRIKIN LOUD and then talk to me.

Most middle eastern states (that produce oil) are welfare states. Just because American oil companies drill the oil does not mean they get all the money.

[edit on 1/8/2007 by Rockpuck]

Rockpuck

Most middle eastern states (that produce oil) are welfare states.

Isn't that in part because they get deals better than Iraq's?
Plus I would hate to be any kind of welfare worker in Iraq. If nothing else because one false sects address and your dead-kidnapped.

Any company that get's these Iraq oil deals can look forward to at least 20% net profit (after all costs). Given that the stuff is worth over 50 a barrel and Iraq has billions of them; I would say that is a pritty good deal (espically when you only have to employ others to do the work).

However we'll see how costly it is. And somehow I really don't think Iraqis will see much of anything (namely given the corruption, and security situation; plus the extreme extra costs it entails) (even for building schools).

Rockpuck

It seems that you think that is all honey and bread in Iraq do you,

What a dreamer!!!!!!!!

Get a hold of yourself and let me spell it out.

Iraq A nightmare, Iraq A government that is holding thanks to US backing their Arses, Iraq Shiite government, Shiite militias in charge.

Guess what Rockpuck, nobody is going to drill anything in Iraq contract or not as long as Iraq is fighting within itself.

BTW where do you think the money for the drilling is coming?

From the oil barons? keep dreaming, keep dreaming.

I cannot wait to see how he oil barons are planning to start drilling

I got it, US will be making their bases in the drilling zones so they can barricade the workers.

Yeah come an talk to me Rock.

Originally posted by Strangerous
What many have long suspected can now be seen: The invasion of Iraq was about oil and the Iraqi parliament is soon to pass a law allowing western companies extraction rights - the first since Iraqi oil was nationalised in the 70's.

The 'IoS' today reveals a draft for a new law that would give Western oil companies a massive share in the third largest reserves in the world. To the victors, the oil? That is how some experts view this unprecedented arrangement with a major Middle East oil producer that guarantees investors huge profits for the next 30 years

So was this what the Iraq war was fought for, after all? As the number of US soldiers killed since the invasion rises past the 3,000 mark, and President George Bush gambles on sending in up to 30,000 more troops, The Independent on Sunday has learnt that the Iraqi government is about to push through a law giving Western oil companies the right to exploit the country's massive oil reserves.

And Iraq's oil reserves, the third largest in the world, with an estimated 115 billion barrels waiting to be extracted, are a prize worth having. As Vice-President Dick Cheney noted in 1999, when he was still running Halliburton, an oil services company, the Middle East is the key to preventing the world running out of oil.

Now, unnoticed by most amid the furore over civil war in Iraq and the hanging of Saddam Hussein, the new oil law has quietly been going through several drafts, and is now on the point of being presented to the cabinet and then the parliament in Baghdad. Its provisions are a radical departure from the norm for developing countries: under a system known as "production-sharing agreements", or PSAs, oil majors such as BP and Shell in Britain, and Exxon and Chevron in the US, would be able to sign deals of up to 30 years to extract Iraq's oil.

PSAs allow a country to retain legal ownership of its oil, but gives a share of profits to the international companies that invest in infrastructure and operation of the wells, pipelines and refineries. Their introduction would be a first for a major Middle Eastern oil producer. Saudi Arabia and Iran, the world's number one and two oil exporters, both tightly control their industries through state-owned companies with no appreciable foreign collaboration, as do most members of the Organisation of Petroleum Exporting Countries, Opec.

Critics fear that given Iraq's weak bargaining position, it could get locked in now to deals on bad terms for decades to come. "Iraq would end up with the worst possible outcome," said Greg Muttitt of Platform, a human rights and environmental group that monitors the oil industry. He said the new legislation was drafted with the assistance of BearingPoint, an American consultancy firm hired by the US government, which had a representative working in the American embassy in Baghdad for several months

news.independent.co.uk...

Worth reading the entire article so you can see how the Iraqis are really getting screwed and why our troops are dying.

I was going to say summin but I gotta go to the bathroom?

Like I say before the ones that are rushing to handle a paper to he US oil barons to take the Iraqi oil is the new emerging elite that are safely tucked away in the green zone making decisions for the nation while the real Iraqi people are trying to stay alive in the war zone that is the rest of the Iraqi nation.

Funny but I wonder if this whole thing is legal after all.

Iraq government is weak and actually they are having a tug a war from within.

Funny how this was planned, have a well planned invasion, the invasion turned sour, have a hasty government, they government can not control its nation, then have a group of money hungry government people to handle the nations resources to the US, when the this people can not even control the nation.