Oil groups snub US on Iraq deals [View All]

[ze_dscherman]

Some of the world's biggest oil companies have warned the US administration that they will not make large investments in Iraq while the security situation remains so dangerous.

The reluctance of the industry to invest long-term is a setback to US efforts to revive the oil industry and rebuild the economy. Industry experts estimate it would cost $30bn-$40bn to tap the full potential of Iraq's vast oil deposits.

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Such concerns were amplified on Thursday by Sir Philip Watts, chairman of Royal Dutch/Shell, who told his company's results meeting: "The safety our people is paramount. There has to be proper security, legitimate authority and a legitimate process . . . by which we will be able to negotiate agreements that would be longstanding for decades. We wouldn't go into that situation unless these conditions were satisfied because we are a long-term business doing long-term projects and we need the framework in which we can make this sort of investment decision."


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