Der Spiegel: A Lot of Blood for Little Oil

[marmar]

US Involvement in Iraq
A Lot of Blood for Little Oil

By Cordula Meyer


Contrary to what many people believe, the Iraq war provided few advantages for the US oil industry. The diplomatic cables show that, in most cases, it was competitors to the Americans who often did better in the country. Only one US company truly profited: Halliburton.

During the first bidding rounds, the oil bosses were still laughing. When Iraqi Oil Minister Hussein al-Shahristani issued the first drilling contracts for foreign multinational companies at Baghdad's al-Rashid Hotel on June 30, 2009, he made clear that there would not be any sharing of profits, but rather a fixed price paid for each barrel of oil drilled.

But the companies still had great hopes. A consortium led by the US company Conoco Phillips wanted to get $26.70 per barrel in one difficult oil field. For the Rumaila area near the Kuwaiti border, ExxonMobil offered $4.80 per barrel. A consortium led by BP would have been happy with $3.99.

"There was buzz in the room" during these bids, noted US Ambassador Christopher Hill.

But when the minister announced what his government actually wanted to pay, there was "stunned silence." Two dollars per barrel -- and nothing more. In addition, the companies would have to replace the Iraqis' ramshackle oil drills with new equipment. "Giggles were heard" when these figures were revealed, the ambassador wrote. Afterwards, Shahristani named the offer for other oil fields at prices that were even lower. Things grew silent. ...........(more)

The complete piece is at: http://www.spiegel.de/international/world/0,1518,732984,00.html

[bemildred]

1. The big winner of GWII is Iran.

As predicted.

[dixiegrrrrl]

2. Very interesting...very.

Only one US company truly profited: Halliburton.

TY for posting this, marmar.

[kenny blankenship]

3. It's true that the Iraqis have shunned US oil co.s, so that part of the plan has not worked

However the general outline of the BushCheney plan - to create "democratic" client states in the Mid East that will depend on our military for security and thus depend on our goodwill and can never afford to use oil as a political weapon against us as happened in the 1973 Oil Embargo - remains intact. American Empire planners cannot resist the urge to bring these states under close US foreign policy domination while China is on the rise. Iraq was the easiest & best quality oil to pump in the ME, and due to the long sanctions regime, it was the least exploited. Iran may not have as much oil as Iraq, but their oil and their abundant natural gas is likewise a very underexploited resource due to long standing conflict with the US.

[Kennah]

4. Perhaps Not Yet

I caught some of "Iran Is Not The Problem" on LinkTV this week. It's on again tonight on DirecTV.

Had the Bush Administration been successful in it's attempts to pressure Iraq to change their oil law, then U.S. oil companies likely would have gotten a big share of profits.

If Caribou Barbie, or any other Republican, wins the Presidency in 2012, then expect renewed pressure on Iraq to change it's oil law.