What's new

The Great Iraq Oil Robbery

Joined
Apr 29, 2008
Messages
248
Reaction score
0
The Iraq war was a win-win situation for Usa, this wasen't a war for weapons,it was a war for oil.This war has been a main reason for the skyrocketing Oil prices, which inturn are pushing-up food prices.Somebody is getting ****** rich here!!
I have a great article to support my view...and I feel the price rise will not stop until the USA gets out if Iraq.

"The oil men of the Bush administration are trying to set up one of the biggest swindles in history — the great Iraq oil robbery.

"The cabinet of the new Iraqi government — under pressure from the U.S. occupiers who put them in power — approved a law that would undo Iraq's nationalized system and give Western oil giants unparalleled access to the country's vast reserves.

"The oil companies would be guaranteed super-profits — [stolen] on a scale unknown anywhere else in the Middle East — for a period of 20 to 35 years, from oil pumped out of two-thirds or more of Iraq's oilfields.

"Meanwhile, Iraqis would continue to endure poverty and the devastation of war while sitting atop what is estimated to be the third-largest supply of the world's most sought-after resource."

"...the law underlines the importance of the scramble for oil to the U.S. empire — no matter how much George Bush and his administration deny it with claims about spreading "democracy" and making the world safe from terrorism.

"The U.S. government's thirst for oil isn't only about profits — and still less about securing supplies of a commodity that ordinary Americans depend on — but is also about power. In a world in which the economic and military might of nations depends significantly on access to oil, more control for the U.S. means less control for its rivals.

"These dual calculations — securing access for its own needs and controlling the access of others — have been central to the history of oil and the U.S. empire, from the end of the 19th century, to the start of the 21st."

"...as Saman Sepheri wrote in the International Socialist Review, "every tank, every airplane — from the B-52 to the stealth bomber — every Cruise missile and most warships in the U.S. or any other nation's military arsenal rely on oil to wage their terror."

"U.S. companies would love to take advantage of the super-profits guaranteed by the production-sharing agreements (PSAs) that the [U.S.-imposed] Iraqi government would sign under the law.

"PSAs are usually used in situations where the oil is difficult to extract, so the company's investment in production is substantial. But the opposite is the case in Iraq — the cost of extraction is about $1 per barrel, and the selling price on the world market is around $60 a barrel. And under the PSA, foreign oil companies would be guaranteed 70 percent of the profits — seven times the typical share under other contracts in the Middle East."

"The other aim of the oil law, as left-wing Iraq expert Michael Schwartz put it in a recent interview with Socialist Worker, is to give U.S. companies "control over the spigots" — so that the U.S. will "get to decide how much is going to get pumped at any particular moment, and who it will be sold to."

"For the last century, the world's governments have been ready to go to war over oil — and they will again, until a new society that places priorities on democracy, freedom and justice is established."
 
The United States perceives three threats to its hyper-power status:
1) Resurgent Russia
2) Rising China
3) Islamic fundsamentalism (primarily Iran)

1) Russia is being taken care of by the eastward expansion of NATO and EU; pretty soon, I'm certain all European states (except Russia) will be a part of EU and/or NATO. This ensures Russia does have a proxy right in front of its nose (Moscow).

2) The Afghan War, thought initially was being fought for AQ and OBL, is now more of an anti-China program. Today it is Afghanistan, tommorrow Uncle Sam will make inroads into Kazakhstan, Kyrgyzstan, and Tajikistan. This also serves to boggle Russia a bit. The United States already has a presence in Korea and Japan. The South-East Asia is more pro-US than pro-China. The reason why the United States wants us (India) to "rise up to PRC" (which militarily we already have) is because we are the only not-so-pro-China nation south of China that Uncle Sam cannot "command." Further, the Uniteds States would like to loosen up its grip here and there in order to free up resources for elsewhere. We easily fit the bill. That's a different story that we are using them as much as they are using us and that we are playing our own game all together. The reason why Pakistan is being courted has more to do with PRC's influence over Pakistan than anything else. The insurgency that we see in Pakistan right now will die sooner or later. Uncle Sam is circling the PRC, much like how the USSR had done. For every nation in the IOR that PRC buys China forgets that USA can do that too. Let us also not forget Diego Garcia and the rising IN.

3) The Iraq war has everything to do with Iran and Islamic fundamentalism. The petro-dollars are merely an icing on the cake. The United States gets most of its oil from Canada and Mexico. The oil shale deposits in Canada are more than enough to keep America "oiled." Iraq was largely done to minimize Iran; this has backfired to a certain extent, but we all forget that the US military isn't dumb and is learning with every day. Once Iraq is under America's umbrella, it wouldn't be long before Iran is courted in too.

Now what is it that could wrong in US' plans?

1) Russian dominance over EU's oil and gas supplies.
2) Failure of US' Pakistan policy and mismatch with India's intentions.
3) Iraq gets engulfed in a state of perpetual civil-war (highly unlikely).

These are just my views and I'm no expert; feel free to disagree.
 
Regret to state that the post by Hon Mohammed Azizuddin is written by someone with very little knowledge of actual facts and is based upon common misconceptions. Here are some facts:

Total Oil reseves of Iraq: 115 billion barrels.

Max ever produced: 4-million barrels per day.

2007 average production: 2.08 million barrels per day.
Current capacity: 2.40 million barrels per day

206 oil earnings: $38-billion

At today’s price: $90-billion per year
($126 per barrel)

US expenditure as of 2005: $250-billion direct, $500-billion including support costs.

Current average expenditure: $6-billion per month or $ 72-billion per year.

US had already spent five times more money by 2005 than entire Iraqi oil exports could possibly earn at $126 per barrel ( today’s average Mid East crude basket price) One can see from the above that there is no robbery as such. US has strategic interests in the Mid East region. Total US oil products demand is nearly 21-million barrels per day out of this nearly 50% comes from the OPEC countries. It is in the US interest to keep the oil supply open. However it is debatable that if Iraq did not have oil; US would not have attacked Iraq in such a big way. Afghanistan has no oil, still US invaded Afghanistan.

Main reason for US involvement is that post 9/11, the world has changed and US has resolved to fight terrorism wherever US perceives it emanates from. No doubt US companies are benefiting from Iraqi oil but it is not the way it is implied in the above post. This is another example of ‘Spin’ of the truth. Oil is one of the reasons but not the main reason.
 
Vish / Azizudiin:
Petrodollar is not a Icing over a cake if you go a little deeper you will understand that what it is. Dollar VS Euro. Sadam made a deal with Russia, China and most of the EU that he will trade his oil for Euro instead of US dollars. That would have destroyed the Dollar. rest this would explain.

Interview With William R. Clark, Author "Petrodollar Warfare: Oil, Iraq and the Future of the Dollar"

This is a good website.
INFORMATION CLEARING HOUSE. NEWS, COMMENTARY & INSIGHT
 
Niaz, agreed the original poster over simplified it, but the issue is not the American people went to war for oil, it was the American companies that went to war for amongst other things... oil.

The almost 1 trillion dollars you quoted went back into American companies. Most of it is costs like $200/hr for one of the contractor company's costs for driving a truck. So a great deal of money was shuffled and shown as costs. It did cost the American people but profitted the actual instigators of war.

Now Oil prices are up and they are getting near free oil. They will charge their own people along with the rest of the world and go richer.

Of course the power grab argument remains true as well. As long as America controls it, China and Russia can't.
 
Vish / Azizudiin:
Petrodollar is not a Icing over a cake if you go a little deeper you will understand that what it is. Dollar VS Euro. Sadam made a deal with Russia, China and most of the EU that he will trade his oil for Euro instead of US dollars. That would have destroyed the Dollar. rest this would explain.

Interview With William R. Clark, Author "Petrodollar Warfare: Oil, Iraq and the Future of the Dollar"

This is a good website.
INFORMATION CLEARING HOUSE. NEWS, COMMENTARY & INSIGHT


Hon Murad,

Oil market is more complicatd than the info given in the website. One of the reasons of oil price rise is the the decline in the the dollar value.

Iran, which currently produces 4-million barrels of crude per day, now conducts all trade in Euros. ( Expected earnings this year approx $70-billion)
Since all dollars have to pass thru US; Iran does not want its money stuck in the US as it happened following the hostage crisis.

Iran is one of my accounts so I know the modus operandi. The oil is valued in US dollars, but two days before the payment due date, Euro value is calculated based on the euro/dollar market rate , and payment phyiscally made in equivalent Euros. Similarly, Iran is buying a lot of refined products, mainly gasoline and gas oil. Iran opens L/C's thru Swiss Banks ( Calyon is one such) thru NICO, a wholly owned Swiss based company. Iran purchases Euros and the bank converts into US dollars for the Seller.
 
Niaz, agreed the original poster over simplified it, but the issue is not the American people went to war for oil, it was the American companies that went to war for amongst other things... oil.

The almost 1 trillion dollars you quoted went back into American companies. Most of it is costs like $200/hr for one of the contractor company's costs for driving a truck. So a great deal of money was shuffled and shown as costs. It did cost the American people but profitted the actual instigators of war.

Now Oil prices are up and they are getting near free oil. They will charge their own people along with the rest of the world and go richer.

Of course the power grab argument remains true as well. As long as America controls it, China and Russia can't.

I can't say for sure about US companies, but all the traders that I know pay directly to SOMO ( State oil marketing organization of Iraq). The company I work for buys fuel oil from SOMO. We open an L/C directly to SOMO. Fuel oil is loaded from Khor Zubair ( one of the creeks of Shat al Arab). Somo collects the money by presenting normal shipping documents to the bank.

I don’t think US companies get nearly free oil. The US companies however make huge profits trading Iraqi oil. Especially because no US Company can touch Iranian products, refineries with even a small US equity will pay extra for the non Iranian origin oil including Iraqi.

You are however correct that except for the actual ammo and fuel used in fighting; most of the expenditure in Iraq is on logistics support. All the prime contractors are US companies and main beneficiary, apart from US companies, is Kuwait. One of my colleagues, who is a Kuwaiti (his father) with an American mother; resigned and formed his own company in Kuwait. He used his American part with success with Halliburton and became their subcontractor. I met him in Doha in Feb this year. He claimed that he was making the money he earned in a year as an oil trader in one month.

I however maintain that 'Robbing' Iraqis of their oil is a popular misconception.
 
Regret to state that the post by Hon Mohammed Azizuddin is written by someone with very little knowledge of actual facts and is based upon common misconceptions. Here are some facts:

Total Oil reseves of Iraq: 115 billion barrels.

Max ever produced: 4-million barrels per day.

2007 average production: 2.08 million barrels per day.
Current capacity: 2.40 million barrels per day

206 oil earnings: $38-billion

At today’s price: $90-billion per year
($126 per barrel)

US expenditure as of 2005: $250-billion direct, $500-billion including support costs.

Current average expenditure: $6-billion per month or $ 72-billion per year.

US had already spent five times more money by 2005 than entire Iraqi oil exports could possibly earn at $126 per barrel ( today’s average Mid East crude basket price) One can see from the above that there is no robbery as such. US has strategic interests in the Mid East region. Total US oil products demand is nearly 21-million barrels per day out of this nearly 50% comes from the OPEC countries. It is in the US interest to keep the oil supply open. However it is debatable that if Iraq did not have oil; US would not have attacked Iraq in such a big way. Afghanistan has no oil, still US invaded Afghanistan.

Main reason for US involvement is that post 9/11, the world has changed and US has resolved to fight terrorism wherever US perceives it emanates from. No doubt US companies are benefiting from Iraqi oil but it is not the way it is implied in the above post. This is another example of ‘Spin’ of the truth. Oil is one of the reasons but not the main reason.

HI Niaz, Yes that article was'ent written by me, I just said I had an article that supported my view...

Now, Iraq was'ent a big supplier of oil.Saddam always kept a cap on oil production.Western companies were never allowed to explore oil in iraq.Today, the world is so much dependant on oil, that 0.5% reduction on production of oil can cause rise to crude oil price.
The major problem of this crude oil price rise has started after the Iraq war.Whats happening to oil in Iraq??? Who is really getting rich here??
 
HI Niaz, Yes that article was'ent written by me, I just said I had an article that supported my view...

Now, Iraq was'ent a big supplier of oil.Saddam always kept a cap on oil production.Western companies were never allowed to explore oil in iraq.Today, the world is so much dependant on oil, that 0.5% reduction on production of oil can cause rise to crude oil price.
The major problem of this crude oil price rise has started after the Iraq war.Whats happening to oil in Iraq??? Who is really getting rich here??


Only people getting rich today are the oil exporting countries such as OPEC and USSR. Even oil traders are having a tough time. Our company has leased a big storage space from Vopak oil terminal in Fujairah. Our inventory value used to be $50-million, now it is nearly $100-million and profit margins have not improved. The tripling of oil prices since 2004 and doubling since last year is likely to cause a global recession. No doubt US Iraq war is one the causes and if US attacks Iran, oil will surely touch $250 per barrel.

Most affected are the countries which depend upon imported oil to maintain their growth rate such as Brazil, India and China;followed by others including Pakistan. Among the major oil companies, only those will large production base such as Exxon Mobil and Shell are happy. Companies with smaller oil reserves but with large retail network are also in trouble. Some African countries would soon be unable to pay for their energy imports.

Believe me, US may be the prime cause but as the largest importer in the world, US is not the beneficiary.
 
Also getting very rich are defence exporting mega-corporations in the west who sell overpriced junk to countries like Saudi Arabia, UAE etc. If oil stays above $100 a barrel then oil companies involved in drilling will make huge amounts of money extracting shale oil. Canada and the USA has massive amounts of shale oil which costs about $10 to $20 a barrell to extract right now. The Saudi light crude only costs about $3 to $5 to extract from the ground and until the '90s it was not even feasable to think of extracting shale oil. Now things have changed and as the "easy" crude starts to run out and world demand for oil rises in the next 10 years, there will be huge amount of money made by technology oriented oil companies drilling for shale and undersea reserves.
 
Back
Top Bottom