Iraq: Battle Over Bush Oil Law Proposal

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http://abclocal.go.com/kgo/story?section=nation_world&id=5384183

Jun. 10 - KGO - The threat of violence is of course a major concern for Iraqis, but so too is how to handle the country's oil resources. The Bush administration claims its plan to privatize production is the best way to rebuild Iraq's infrastructure. But representatives from Iraq's oil industry say the plan gives too much control to foreign interests. They're touring California right now to convey that message.

Most of the Iraqi oil wells which were destroyed during the first Gulf War and in the past four years may soon be under foreign control. A law backed by the Bush administration and now in Iraq's parliament would give control of the majority of these fields to foreign oil companies for about 30 years.

Severin Borenstein, U.C. Energy Institute: "There's a lot of expertise in the United States and in some other oil companies that simply doesn't exist in Iraq -- that they're going to need to make efficient use of these oil fields."

The plan is to privatize two thirds of the oil production with Iraq maintaining the other third. Two Iraqi labor leaders spoke in San Jose Sunday. They agree that Iraq needs help. But not so much that it has to give away It is one great natural resource for 30 years.