Iraq Oil

One of the benchmarks to be met by the Iraq government by December is the passage of the "Oil Law." News coverage of the contents of this law lead you to believe that it mainly contains provisions for the fair division of oil proceeds among the various regions of Iraq. But what it actually contains are many provisions for the benefit of private foreign (US) oil companies.

• Allow two-thirds of Iraq’s oil fields to be developed by private oil corporations. In contrast, the oil industry has been nationalized in every other major Middle Eastern producer for over 30 years.
• Place governing decisions over oil in a new body known as the Iraqi Federal Oil and Gas Council, which may include foreign oil companies;
• Open the door for foreign oil companies to lock up decades-long deals now, when the Iraqi government is at its weakest.

Overall, the law would secure the agenda of ExxonMobil, Chevon, and the other majors, robbing the Iraqi people of their most basic source of wealth. Much is at stake. With 115 billion barrels of proven reserves ($7 trillion worth at $64 per barrel) and another 215 billion possible or likely ($14 trillion), there’s nearly a million dollars of oil for every Iraqi citizen. It’s a vast and precious national resource—but only if Iraqis are allowed to control it themselves.

Blood for Oil!

Update 7/9/07: Iraqi oil workers lobby against "Oil Law."