Iraq is projected to become an oil giant of as much geopolitical influence as Saudi Arabia. And the U.S. government and its corporations are at the center of that trend.
Ben Van Heuvelen has a piece at Foreign Policy describing Iraq’s burgeoning “extractive industry” and how they’re on track to become a “swing producer” within five years. A “swing producer” refers to “the ability to drastically increase production on short notice” (Saudi Arabia is currently the world’s only swing producer, and it affords the monarchy unmatched geopolitical power). These projections are not a certainty, but the U.S. and Western oil companies are doing their best.
In 2009, the government started awarding contracts for the country’s largest fields, and the biggest names in oil have signed up. Companies like ExxonMobil and BP have invested billions of dollars, bringing the latest in technology and engineering expertise. Production has rebounded from just over 1 million barrels per day after the invasion to nearly 3 million today. Baghdad’s 11 international oil contracts promise to deliver a total of more than 13 million barrels per day within seven years — a figure that would make Iraq the largest oil producer, ever.
Interestingly, oil corporations are relying heavily on the undemocratic centralization of political power in a quasi-dictator like Nouri al-Maliki in order to develop Iraq’s oil. Maliki’s regime has resorted to unilaterally approving contracts with oil companies like Exxon and BP, circumventing parliament’s approval in violation of Iraqi law. “Maliki’s Shiite-majority allies have backed centralized control of oil,” Van Heuvelen writes, “while parties representing the minority Kurds and Sunnis say local governments should have more authority. No bill has yet survived parliament.”
That volatility, however, hasn’t dissuaded oil multinationals — there’s simply too much oil under the country’s soil. So, many companies, from BP to ExxonMobil to Shell to Lukoil, have been willing to invest billions of dollars without the stability of a modern oil law. Companies have mitigated their risks by negotiating contracts that rely on international arbitration to settle major disputes, rather than Iraqi courts. But the overarching reason companies can operate with some confidence is that — in the laissez-faire political economy of Iraqi oil — their power rivals that of the divided Iraqi state.
It’s a pet peeve of mine when people use the term “laissez-faire” pejoratively to describe a process that is exactly not “laissez-faire.” But his point is taken: Because of a weakened parliament, sectarian divisions, and a strong-man Iraqi regime eager to use oil production to boost its geopolitical sway, those Western corporations possess inordinate command.
This is all happening alongside political developments that made news this week regarding the Obama administration’s attempts to negotiate a new defense agreement with the Maliki regime that may include an expanded number of U.S. troops based in Iraq. That’s right, after Obama dishonestly took credit for withdrawing from Iraq, he’s now vying to march right back in, using weapons deals and military training programs as lure.
So as ExxonMobil begins to wield gratuitous power in Iraq, the Obama administration plans to gain increased U.S. influence with money and weapons and troops, all while Maliki consolidates dictatorial power and suppresses democracy at every turn. Perhaps this is what Leon Panetta was referring to when he announced the war in Iraq was “worth the price.“
Maliki is no dictator. I wonder, does the author of this article believe that the Sunni dictatorship in Saudi Arabia, which brutally suppresses the Shiites who make up the majority of the population of the oil producing region of that country an more democratic. The Saudi regime also denies the Shiites in the Eastern province of that country any share of oill revenues.The Iraqi government does allow election. The Iraqi government does allow freedom of expression whereas the Wahhabi dictatorship in Saudi Arabia brutally suppresses all freedom.
Is the author of the above article and are staff of the antiwar website anti-Shia? I suggest before anyone criticizes Maliki or his allies read a bit about Islamic history beforehand: throughout at least most of Islamic history in at least most parts of the Muslim world Shiites have been brutally suppressed and persecuted at the hands of Sunni fundamentalists and dictators. It is also worth noting that Shiites are a minority in the Muslim world. Also, why should anyone believe that Tariq al- Hashemi and Salih al-Mutlaq are goog people and not criminals as Maliki seems to think they are? Has anyone even considered the very real possibility that he (Maliki) might be right about them?
Ha! So the Iraq war was an unqualified success after all. US corporations do wind up getting most of the oil. So the entire country of Iraq had to be atomized (as Raimondo put it) and millions of people killed or exiled. A small price to pay for the enrichment of the Exxons and Rothschilds of the world.
And as Oil-Corporations get pure oil from Iraq, Iraqis get contaminated water and a joke for services. Has anyone tried to audit the Pentagon or the contractors in Iraq. They probably say in one line they need 50 million USD to rebuild schools and libraries and in reality most of the work done in Iraq is shotty at best and the Green Zone has the luxurious palaces of Saddam. Israeli front companies are all over northern Iraq in Kurdish region while tax-payers pay for something that in no way benefits Americans.
Hard, very hard to talk about…
Theres two sides of the same history, to know well both we need to take it deep, very deep…
Kurdish region while tax-payers pay for something that in no way benefits Americans.
I enjoy this unique specialized expertise imagined tasks, who's extremely astounded people the process for which you discovered it again repeatedly, who this type of present great outcomes really should be undertaken within the proper way as well as gracias for your guidance consumers mentioned!
Android Instagram
It's always mine for starters click here. Online some quite exciting cloth inside web page. Its decent to check in which many people feature remarkably enjoyed along with talked about yourself internet site. Impatient related to added first-class website wood logs right from you actually. Cheers
Nandroid Backup
US is a strong country but I can't tell that Iraq is not strong. Iraq is the largest producer of oil and I am sure that they're protecting that. I just wish that these countries will not quarrel to be the most powerful.
Mary from réévaluation pension alimentaire