Iraqi Oil Changes Course

[justinsb]

Iraqi Oil Changes Course



Since the USA's invasion of Iraq in March 2003 has changed the route of oil traffic.

Until the war began all of Iraq's $20 billion oil exports were handled by French, Russian and Chinese oil companies. After the war American and British companies undertook this job. Daily oil production of the country was 3 million barrels before the war but has decreased to 1 million barrels since, though it is reported that oil production started to increase recently. According to authorities Iraq's refusal to export through the USA disturbed the country seriously. Iraq had made important agreements with French, Russian and Chinese companies on production and sharing of natural gas areas prior to the war.

Iraq has the second largest guaranteed oil reserves after Saudi Arabia, with 112 billion barrels. Commentators say that under the guise of destroying weapons of mass destruction, the USA has taken control of Iraqi oil reserves, to which it was previously denied access. The commentators predict that the control of Iraq oil will remain under control of USA and British oil companies for a long time. They also stress that there is no clear information on production and marketing of oil in the regions where fighting is continuing.

http://www.zaman.com/?bl=economy&alt=&trh=20041121&hn=14048

[aquart]

1. Yes. That was the point of the war.

[cliss]

2. I knew about the French & Russian

but I didn't know the Chinese were involved. As it turns out, these countries lost huge contracts which were arranged with Saddam. After the US marched in, those contracts were null and void. Shortly afterward, the US urged all parties to "write off their Iraq debt, which they did". Jeez, what cheaters we are, when you come right down to it. They're probably laughing right now, as we hemorrhage to death (financially) in Iraq.

I can only imagine how pissed China must be. (now it all makes sense, the hostile comments, the finger-wagging etc). Especially now, when they desperately need oil to fund their burgeoning economy.

Thanks for the update, J.