Stalin
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A useful exercise in any war is to follow the money.
This often, though not always gives a clue to why conflicts change.
"..By Patrick Martin
14 December 2009
In a clear signal of the declining influence of American capitalism, even in a country conquered and occupied by the US military, companies from China, Russia, Malaysia and Angola, along with several European oil giants, won most of the rights for exploration and development of Iraq’s oil fields.
The concessions were awarded Friday and Saturday by the Iraqi oil ministry, after a competitive auction in which joint ventures of European and Asian companies won the lion’s share. Of the ten concessions awarded so far, including in an earlier auction, US-based companies will play the lead role in only one, while getting a lesser share in a second.
The most aggressive bidder was the China National Petroleum Company (CNPC), while Lukoil and Gazprom of Russia, and European firms like Royal Dutch Shell, ENI (Italy), British Petroleum, Statoil (Norway) and Total (France) all won bids. Petronas, the state-owned Malaysian oil company, won the most bids, three, while the Angolan state oil company Sonangol won two.
A total of 15 oil fields were put up for bidding, but five received no bids, because they are located in areas in the center and north of Iraq still contested by insurgents or politically unstable, and considered too risky for significant investment. A sixth field drew only one bid. The main interest was in oil fields in the southern part of the country, around Basra.
,,
he poor showing of the American-based oil companies was predictable, since seven of them registered and paid fees to participate, but only one actually submitted a bid to the latest auction. Two US companies, ExxonMobil and Occidental Petroleum, won bids during an earlier auction.
In an early summer decision, BP and CNPC won a contract to run the Rumaila oil field, the biggest in the world, with 17.8 billion barrels in proven reserves. ENI, Occidental Petroleum and Korea Gas signed an agreement last month to develop the Zubayr field, with an estimated 4.1 billion barrels in reserves. ExxonMobil and Shell signed a contract to develop West Qurna Phase 1, believe to hold 8.6 billion barrels.
Industry analysts cited two main reasons for the failure of the US companies. The European-Asian consortiums were able to combine technical expertise and relatively lower labor costs, allowing them to accept a lower per-barrel fee.
More significantly, the US companies needed higher fees to offset the substantially higher security costs they face in Iraq, due to the widespread popular hostility to the US occupation. Any US-run oil facility in Iraq would be a high-profile target for insurgent attack, and a successful attack could lead to colossal losses.
..
Iraqi oil minister Shahristani said that the government has spent more than $8 billion trying to increase capacity, but needs $50 billion more, which it must seek from the global oil industry.
The deals are precarious not only because of the ongoing security issues, but because the legal position of the multinational firms is uncertain. Despite constant prodding from Washington, the Iraqi parliament has failed to adopt a law to regulate the oil industry and give legal protection to foreign investors.
The Kurdish regional government took unilateral action two years ago to invite Western exploration companies into the provinces it controls. The national government is now following suit, opening up the massive southern oil fields to foreign capital..."
http://www.wsws.org/articles/2009/dec2009/iraq-d14.shtml
This often, though not always gives a clue to why conflicts change.
"..By Patrick Martin
14 December 2009
In a clear signal of the declining influence of American capitalism, even in a country conquered and occupied by the US military, companies from China, Russia, Malaysia and Angola, along with several European oil giants, won most of the rights for exploration and development of Iraq’s oil fields.
The concessions were awarded Friday and Saturday by the Iraqi oil ministry, after a competitive auction in which joint ventures of European and Asian companies won the lion’s share. Of the ten concessions awarded so far, including in an earlier auction, US-based companies will play the lead role in only one, while getting a lesser share in a second.
The most aggressive bidder was the China National Petroleum Company (CNPC), while Lukoil and Gazprom of Russia, and European firms like Royal Dutch Shell, ENI (Italy), British Petroleum, Statoil (Norway) and Total (France) all won bids. Petronas, the state-owned Malaysian oil company, won the most bids, three, while the Angolan state oil company Sonangol won two.
A total of 15 oil fields were put up for bidding, but five received no bids, because they are located in areas in the center and north of Iraq still contested by insurgents or politically unstable, and considered too risky for significant investment. A sixth field drew only one bid. The main interest was in oil fields in the southern part of the country, around Basra.
,,
he poor showing of the American-based oil companies was predictable, since seven of them registered and paid fees to participate, but only one actually submitted a bid to the latest auction. Two US companies, ExxonMobil and Occidental Petroleum, won bids during an earlier auction.
In an early summer decision, BP and CNPC won a contract to run the Rumaila oil field, the biggest in the world, with 17.8 billion barrels in proven reserves. ENI, Occidental Petroleum and Korea Gas signed an agreement last month to develop the Zubayr field, with an estimated 4.1 billion barrels in reserves. ExxonMobil and Shell signed a contract to develop West Qurna Phase 1, believe to hold 8.6 billion barrels.
Industry analysts cited two main reasons for the failure of the US companies. The European-Asian consortiums were able to combine technical expertise and relatively lower labor costs, allowing them to accept a lower per-barrel fee.
More significantly, the US companies needed higher fees to offset the substantially higher security costs they face in Iraq, due to the widespread popular hostility to the US occupation. Any US-run oil facility in Iraq would be a high-profile target for insurgent attack, and a successful attack could lead to colossal losses.
..
Iraqi oil minister Shahristani said that the government has spent more than $8 billion trying to increase capacity, but needs $50 billion more, which it must seek from the global oil industry.
The deals are precarious not only because of the ongoing security issues, but because the legal position of the multinational firms is uncertain. Despite constant prodding from Washington, the Iraqi parliament has failed to adopt a law to regulate the oil industry and give legal protection to foreign investors.
The Kurdish regional government took unilateral action two years ago to invite Western exploration companies into the provinces it controls. The national government is now following suit, opening up the massive southern oil fields to foreign capital..."
http://www.wsws.org/articles/2009/dec2009/iraq-d14.shtml
