“If the surge has worked, why are the troops still in Iraq?”
To which reader xix replies
“Because they still have some oil! Even if republicans win the White House this coming election, you can bet the farm that our troops will be heading for home the minute their wells run dry! Make that ESPECIALLY if republicans win the White House!
The wells are not dry and the U.S., for all its efforts in Iraq, will not benefit directly from Iraq’s oil reserves.
After an open bid process in which international oil giants such as Chevron, Shell, BP and Exxon Mobil participated, the first contract was awarded to China National Petroleum Corporation (CPNC). CNPC (aka: PetroChina) was awarded a $3 billion oil service contract. The Government of Iraq was apparently prepared to sign no-bid contracts with several of the American and European firms until three U.S. Senators-Chuck Schumer (D, NY), John Kerry (D, MA), and Claire McCaskill (D, MO)-tried to intervene in the negotiation process. The three insisted that the Iraqi government not sign any contracts until an official revenue-sharing plan was established between the various Iraqi ethnic and religious groups. The Iraqi government balked and put the contracts out for open bid.
Whether western oil companies secure any additional contracts remains to be seen. Regardless, China benefits first and foremost from the blood U.S. and Allied soldiers have spilt. Way to go Schumer, Kerry, and McCaskill.
P.S. – xix, we haven’t pulled out of Iraq yet.
No Oil for Blood, Frederick W. Kagan, Weekly Standard
China agrees $3bn Iraq oil deal, Aljazeera.net
China Hails $3bln oil deal with Iraq, Yahoo! News
Foreign companies bid to boost Iraqi oil production, Said Rifai and Doug Smith, Los Angeles Times
Iraq’s oil fields open to bidders, CNNMoney.com