Instability and Security Issues in Iraq benefit the Oil companies and Defence Contractors.

I believe the Bush administration had a post-war strategy in Iraq. In fact, I think it is playing out exactly as planned.

The massive security problems necessitate a prolonged coalition presence. This not only ensured the US would be �at war� during the 2004 election, and would therefore be more likely to re-elect Bush but it also keeps the money rolling into the defence contractors� pockets.

The security problem also raises doubt over the supply of oil from the region, which therefore inflates the price. This obviously benefits the oil companies to whom the Bush family and a lot of the cabinet are affiliated.

No links, just a theory.

It would be interesting to see if corporate stocks overall reflect you theory....I dont agree with it by the way, but thats just me.

Watching your infrastructure investment and staff getting blown up time and again would in my mind make investors nervous...an unwanted distraction away from more lucrative and safer projects elsewhere.

Its also harder to set up McDonald franchises

Originally posted by craigandrew
Watching your infrastructure investment and staff getting blown up time and again would in my mind make investors nervous...an unwanted distraction away from more lucrative and safer projects elsewhere.

Granted, there must be safer projects elsewhere, but more lucrative? At $1.50 / barrel to extract (please correct me if I'm wrong) and a current market value of around $55 / barrel, together with many untapped reserves, I'd say it is pretty lucrative.

Maybe, but if the pump, pipeline, refinery infrastructure keeps getting toasted, along with the staff....then it could cost the .15c per, and it would still not be doing THEM much good, let alone any of the revenue meant for Iraqi coffers.....The oil has to reach the west before they can make money.

And these global corporations have other interests. There is only so much mark up they can do before oils rising price has a negative effect on other industries and services affected by the oil price.

News just said there had been a major drop in oil prices acreditted to the increasing flow of oil from Iraq, despite attempts from the insurgents to stop the flow (remember common Iraqis benefit from the flow of oil too, regardless of who is buying or selling it).

I dont know what this does for the theory that corporations are deliberately benifiting from the media reports of disruption to the supply.


Now is this fact, or just a timely Carrot to woo voters to the Bush camp today.

Cheers

Hmmm,

Sounds very much like a carrot to me.