Wednesday, May 17, 2006
The process of securing this access involves four steps.
1) Restructuring Iraq from a state to a market-controlled economy, was implemented and well underway within the first few months of the invasion.
2) Put into motion with the December 15, 2005 election, is the formation of a legitimate Iraqi government with the authority to, among other things, sign contracts with foreign oil companies (going to require another dictator like our man Saddam Hussein).
3) The completion and passage of a new national Petroleum Law which is set to take place this year.
4) Having enough security on the ground for US oil companies to get to work, is uncertain, and therefore the timeline for full US troop withdrawal remains unknown.
Prior to the 2003 invasion, foreign companies had limited to no access to the Iraqi market. Only Iraqis or citizens of Arab nations could own a business in Iraq, the oil sector was fully nationalized.
Following the invasion, the Bush Administration implemented orders that have the effect of law allowing for the privatization of Iraq’s state-owned enterprises...
...through Production Sharing Agreements (PSAs). None of the top oil producers in the Middle East use PSAs because the agreements favor private companies at the expense of the exporting countries. PSAs turn the entire exploration, drilling, and infrastructure building process over to private companies under contracts with terms of twenty-five to forty years that lock in the laws in effect at the time the contract was signed. This means that while a future Iraqi government could change Iraq’s laws, including Bush’s economic orders, its changes would not impact oil contracts signed while the current laws are in effect.
For example, Chevron has been flying Iraqi oil engineers to the US free of charge for four-week training courses since early 2004.
ExxonMobil signed a MOU with the Oil Ministry in late 2004, laying the groundwork to provide technical assistance and conduct joint studies.
In January 2005, BP signed a contract to study the Rumaila oil field near Basra,
and Royal Dutch/Shell Group signed an agreement to study the Kirkuk field.
Under the Bush Regime, US troops are never coming home. The largest embassy in the world is being built in Bagdad - bigger that Vatican City. Four huge US military bases are currently being build in Iraq complete with McDonalds, Chili's, Wal-Marts and golf courses. There is no water or electricity in Iraq but these construction projects are on schedule
Posted by Jesus Reyes at 10:24 PM