China and US duke it out for Iraq's oil?
Ooops, the latest oil deal fell through.
No wonder Cheney's frantically trying to hang in there.
What a mess they've gotten us into -- just before the invasion, oil was trading at around $30 a barrel .. last I heard it was more than $76 a barrel.
From NYT: "BAGHDAD, July 22 — Efforts to achieve national reconciliation in Iraq received a double blow on Sunday.
Lawmakers acknowledged that there were still many differences on a proposed law to manage oil revenue, the country’s most lucrative resource, making it unlikely they would approve a law before September, when the Bush administration must report to Congress on Iraq’s progress toward meeting certain legislative benchmarks. The report is expected to have an impact on whether Congress continues to support the Iraq war. [..]"
Boy they'd better hurry -- looks like US oil companies may have to fight the Chinese for a cut of all that lovely oil. According to the Financial Times, the Iraqi government has "revived a contract signed by the Saddam Hussein administration allowing a state-owned Chinese oil company to develop an Iraqi oil field."
"Iraq wants Chinese firms to bid for oil exploration contracts and hopes to revive the frozen oil exploration contract...."
http://www.iraqupdates.com/p_articles.php/article/18549
With everyone and his brother competing, China will take on political risks in Iran and security risks in Iraq .. just to get an oil share before US firms hog it all up.
And what's this about China writing off Iraq's 8 billion dollar debt?
"Chinese Commerce minister Bo Xilai and three Iraqi ministers signed a deal Thursday to cancel Iraqi debt owed to China's government, and Iraqi President Jalal Talabani was set to meet Chinese Premier Wen Jiabao on Friday.
...According to Iraq's finance minister, Iraq owes China about $8 billion -- part of the roughly $60 billion in foreign debt accumulated during the Saddam Hussein era."
http://biz.yahoo.com/ap/070622/china_iraq_debt.html?.v=1
There are already Chinese firms in Iran .. not many competitors there, so they have the opportunity to get involved in super giant oil fields. Iran's oil equipment is old and ready to fall apart .. it needs China's investment to keep the oil flowing.
Iran could give such sweet oil deals to China that it might persuade them to look the other way when the subject of backing sanctions against Tehran comes up .. you know, over all that silly nuclear business.
Iraq has the third largest reserves in the world and only 10 percent of the country has been explored for oil. Since US laws prohibit American firms from investing in the Islamic Republic, Iraq's oil becomes all the more important.
Heck, that could be the main reason we invaded. <coff coff>
Here's the secret Republican plan to bring the troops home from Iraq:
Delay until Cheney and his Big Oil buddies get the oil deal they want .. delay until September .. delay until October .. delay until November .. delay until the spring of 2008 .. delay until the spring of 2009.
Cheney will be out of office in January 2009 .. so spring may come a bit earlier that year.
