Iraq Oil Law
Two quick things. First of all, there has been a lot of talk in the media lately about the "Iraq Oil Law". It is one of the political benchmarks the U.S. set against the al-Maliki government.
Now, being the inquisitive mind that I am...I wanted to know...what is this Oil Law? Is it to share all profits among the country, ensuring that it isn't just the Kurds whom receive the profit? Is it to ensure that hardworking and cooperative Iraqis will be able to reap the spoils of their hard work?
NO.
The Iraqi Oil Law is a bill that guarantees at least 12.5% of oil profits to foreign companies. It gives the Iraqi government ownership of 17 of Iraq's 80 oil fields, with the rest of the developed fields going to foreign companies. All undeveloped and undiscovered fields (which, this is Iraq, there are plenty), are open to private investors.
Why is no one paying attention?
On a more sympathetic note, in a new book out today, President Bush admits that he cries. A lot.
Am I laughing? No. It gives me a warm sentiment inside...you know...a Humean moral sentiment...to know that our President, wrong as he may be, is trying to do his best. Barring that, he feels guilty.
He isn't a heartless evil demon like some liberals want to stamp him. He is just a guy, with differing beliefs. I think he really does believe invading Iraq was right. And he really does believe privatization will benefit all.
So let's take a breath, and realize that there are very few people out there who are flat out evil all the time. Most just disagree about fundamental beliefs.
posted by Preston @ 5:23:00 PM
2 Comments:
Hi, Preston, just finish watching your Indians blow one. Here are my thoughts on your piece on Iraqi oil.
Actually, I glad to see the Iraqis are allowing private investor which benefits the Iraqis in the long term and us as well. For one, it eliminates one less government monopoly in OPEC and two, private companies will do a better job of getting oil to the market. The real issues if Iraqis share in the profit, very similar to Alaska, where every Alaskan gets a piece of the oil revenues. This will go a long way to unite Iraq, which is also a good thing. Take care and go Indians.
Tom,
Privatization is one thing--but a guaranteed profit to foreign companies is another. How could shipping profits out of the country possibly help Iraqis?
I understand that some of the profit will be reinvested in jobs for Iraqis, but nevertheless there will be a large chunk of money...billions...that will be leaving Iraqi soil and going to global oil giants across the sea.
As for the privatization question, that is a much larger debate; but I think the most important thing to do would be to let Iraqis decide what to do with their oil fields. I am unsure why the benchmark said THIS law (with the guaranteed foreign profits) had to be passed, rather than a benchmark that said SOME law needed to be passed.
If we are in Iraq to promote their own freedom and sovereignty, why would we impose conditions on their lawmakers?
As for the Indians...on to the Red Sox! Yes!
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