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Iraq oil: Disaster for the U.S. economy

Written by Kazi Mahmood
Wednesday, 16 January 2008
Without the influx of Iraq’s oil in the American economy, directly or indirectly, Washington is facing a crisis that can deepen itself and turn into the worst recession the Americans have ever known in their history. The Bush regime has also, in the recent past, tried to force the Sunni Arabs in the Middle East to support the U.S. in Iraq and not to accommodate anti-U.S. forces fighting U.S. troops in that country. This too fell in deaf ears since the anti-U.S. forces did not let down their attacks against U.S. and Iraqi troops. The aim of establishing peace in Iraq is for the U.S. economy to gain from the country’s oil production. The failure by the Iraqi Parliament to vote an Oil law – which allows the dismantling of Iraq’s oil reserves into pieces among U.S. and other western companies – has caused serious strains and deficiencies for the U.S. economy. Invading Iraq, destroying it and killing its youth was one objective of the U.S. led coalition. Yet the primordial objective was to control its oil reserves and to create a security belt that would prevent Iran for example, and the Taliban in extension, from having an access route to Israel. Failing to gain from the oil revenues from Iraq and being forced to pump in more money to accommodate troop’s surges and fund the Iraqi bankrupt regime in power is costing the U.S. to be on the verge of bankrupt altogether. While its proven oil reserves of 112 billion barrels ranks Iraq second in the world behind Saudi Arabia. An EIA estimates that up to 90-percent of the county remains unexplored due to years of wars and sanctions. Unexplored regions of Iraq could yield an additional 100 billion barrels. Iraq's oil production costs are among the lowest in the world. However, only about 2,000 wells have been drilled in Iraq, compared to about 1 million wells in Texas alone. Today, under U.S. control, some regions of Iraq are already exploring oil on an unofficial basis. The Kurdistan region in the north of Iraq is exploring Oil on its own, selling to U.S. and other companies. The oil is exported via Turkey too and this is not revealed by the Western media. In the Southern parts of Iraq, it is known that the Shiite community is sharing its oil reserves with the Iranians. This oil is not going to the United States as expected and as wanted by Washington. Iraq’s oil, cheaper to produce and in the hands of the U.S. was thought to be the savior for the U.S. economy, the prize that would be secured as a result of a ruthless illegal war against a sovereign nation. The entire strategy to highjack Iraq’s oil ‘kaputed’ thanks to the violent resistance against American occupation of the country. There is also the deep and logical involvement of Iran in the affairs of Iraq which prevented the Americans from gaining total control of the oil in Iraq. Despite years of rebuilding, petroleum production continues to fall short of targets, due to insurgency vandalism, poor field management, and corruption. Proposed Iraqi legislation on oil revenue distribution – a measure deemed crucial by the White House – remains the subject of bitter sectarian debate, reported the Christian Science Monitor in 2007. The Al Basrah Oil Terminal finally can work at full speed. This giant H-shaped tanker loading platform, located in the Persian Gulf off Iraq's southeastern coast, is one of the country's most important pieces of economic infrastructure. Thanks to US-funded reconstruction, all four of its berths now are in operation for the first time in many years. The CSM also wrote that “Iraqi oil did not pay for the first round of postwar national reconstruction, as Bush administration officials had predicted. Nor has the industry come close to matching its decades-old pumping record of 3.7 billion barrels a day – a level at which Iraq might become a vital source of oil for thirsty world markets,” However, it is not the world markets that are set to ‘enjoy’ the cheap Iraqi oil, it is the U.S. that is supposed to gain – as part of war spoils – from the benefits of capturing Iraq, killing its leaders and maiming its population in order for U.S. citizens to gain from the oil. The wider aspect of the U.S. plan to dilapidate Iraq’s oil is to get the Iraqi mercenaries who are running Iraq under U.S. protection to sell the oil to western companies for very cheap so that they can sell it for very expensive to the rest of the world. Since the US invasion there have been some 400 insurgent or terrorist attacks against pipelines, pumping stations, oil fields, and other parts of Iraq's oil infrastructure, according to the Brookings Institution, a Washington think tank, reports the CSM. The insurgents promised they will keep attacking Iraq’s oil infrastructures and they seem to have the ability to do so, reports indicate. According to CSM the Iraqi government projects that production will rise to 3.1 million barrels a day by 2008. Further investment of $5 billion to $10 billion will be necessary to get back to prewar oil pumping levels. It may take $15 billion to $25 billion beyond that to increase production further. The U.S. president, in his speeches on the war on Iraq has never failed to thank the U.S. army for their ‘help’ in making things better for the American people. His policy is to make the world suffer in order to provide a better life for the Americans. At least, that is how translates his warmongering thirst to the world. Without the inflow of Iraq’s oil in the American economy, directly or indirectly, Washington is facing a crisis that can deepen itself and turn into the worst recession the Americans have ever known in their history. Bush made his first trips to several countries in the Middle East, including Israel, a country that depends on the monetary largess from the American government. It is good to observer that Bush visited Kuwait, Bahrain, and Saudi Arabia – oil rich countries. He is also visiting the UAE, another rich group of Arab emirates. What the western media will not tell is that Bush was carrying around with him a bowl to seek the pittance from the rich Arab nations. The focus of the U.S. presidential visit to the ME is said to be Iran, but the Americans failed to split the Arab world over Tehran and has altogether raised the ire of other Muslim leaders with comments that Iran was a terrorist state. It is all about oil and Bush went that far as to pathetically beg the Arabs and Opec to increase oil production in order to help salvage the U.S. dollar and the U.S. economy. Related Articles: Anti-terror or conflict resolution The string puller behind the Preah Vihea conflict Syria: US attempted to destabilize Damascus Hamas has to go on political offensive EXCLUSIVE India: Drug heists unravels Mumbai attacks Comments (0) Subscribe to this comment's feed Show/Hide comments Write comment Name Email Website Title Comment Write the displayed characters Powered by Azrul's Jom Comment
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