Only one US company has truly profited from Iraq war: Halliburton

[sabra]

http://www.spiegel.de/international/world/0,1518,732984,00.html

A Lot of Blood for Little Oil

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.

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Outside of the formal bidding process, only two US oil giants managed to secure contracts for other oil fields -- Exxon and Occidental.

"No Blood for Oil" had been a slogan used by protesters against George W. Bush's invasion of Iraq. A SPIEGEL cover story in January 2003 even carried the title "Blood for Oil" and analyzed Iraq's role as an oil power. Neoconservatives in Washington had always said that the money from Iraq's oil would be used to pay for the war and the reconstruction.

But the opposite came true. A lot of blood was spilled, but very little oil flowed for the US. With production of 2.5 million barrels of crude oil daily, production in Iraq has returned to close to its prewar levels. Forecasts now suggest it will take 20 years before that production is doubled or tripled, however. The US spent more than $700 billion on Iraq, but now Iraq's oil profits are going to other countries.

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Not until December 2009 were US diplomats able to report a kind of war dividend for the country. "Basra black gold rush begins," reads one of the cables.

At the very least, most foreign oil firms are hiring US engineers, it reads. Engineers, for example, from Halliburton -- the same Texas company that was very closely connected with the old Bush government. Vice President Dick Cheney had once served as Halliburton's CEO.

Halliburton's chief in Iraq was pleased when he spoke before US diplomats last December, almost as if he could hardly believe his own words. "It is really Halliburton (to whom) all the oil majors are turning," he is quoted as saying, "to extract, process, and deliver the oil."

[valerief]

1. The WAR budget takes care of the oil industry. nt