In it's first major oil deal with a foreign country since the American and British effort to bring down Saddam Hussein, China will end up winning a $3 billion contract to develop oil in Iraq. It is the first major foreign oil deal in the nation in the last 35 years. The China National Petroleum Company will be allowed a 20 year contract to develop oil in Iraq's Southern Wasit province according to the terms of the major deal.
Interestingly, while it was well known that the 2003 George Bush effort to topple the Saddam Hussein regime was all about putting Iraq's oil under "International control" according to Paul Wolfowitz's own words, China seems to have so far emerged as the biggest winner for all that effort and bloodshed.
Instead of putting more oil on the world market from Iraq from the Bush war in Iraq, production still lags below the pre1991 war levels, although oil production now is nearly as good as days prior to the 2003 effort to topple Saddam Hussein. Oil prices actually nearly doubled to around $4 a gallon as a result of this war at one point, the war only lowering overall oil production levels from Iraq. Rather than providing more oil or cheaper oil, the Bush premise to create war in Iraq to get more oil effort failed on both counts. Traditionally most colonialist wars in poor nations have been all about getting the poor nation's national resources to benefit wealthy interests in nations such Britain, France or the United States. 
The American war effort in Iraq has cost at least $683.6 billion dollars so far, and cost the U.S. 4,321 dead, and left 31, 156 American service persons wounded. Americans paid the huge costs of this war, had their sons and daughters come home in body bags or in wheelchairs, but China will see the benefits of the oil from Iraq. Way to go George Bush.
Mission Accomplished?
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Comments (5)
I thought we had already stolen all of the Iraqi oil... Isnt that why we were there in the first place?
1. Posted by LiberalNightmare | July 2, 2009 10:45 AM
Posted on July 2, 2009 10:45
That was the story, LN. Wouldn't be surprised to find some bill somewhere that banned US companies from bidding on this...
2. Posted by JLawson | July 2, 2009 10:49 AM
Posted on July 2, 2009 10:49
Everyone knows or should know by now that oil is a global market. For every barrel of oil China gets from Iraq that's one less barrel they get from somewhere else, and thus, this deal has no effect on the price we pay for oil.
However, with this deal China becomes more dependent on peace and stability in the middle east, and thus, their interests in the region become much the same as those of the U.S. This deal couldn't have happened without the change in Iraq's government. Way to go George Bush., Mission Accomplished.
Besides, with Obama's new carbon cap and tax law, we don't need foreign oil anyway, right? We'll get all the energy we need from the hot air coming out of DC.
3. Posted by Mac Lorry | July 2, 2009 2:05 PM
Posted on July 2, 2009 14:05
Gee, largest growing economy in the world, and no one saw that coming? Oh, and for you ecofreaks, the Chinese are still opening one new coal fired electrical plant each week. So how's that carbon thing working out for you? Get used to seeing "Made in China" because damned little will be made in this country any longer.
4. Posted by GarandFan | July 2, 2009 7:31 PM
Posted on July 2, 2009 19:31
According to this: http://www.newsy.com/videos/iraq_s_black_gold
part of the reason why China was one of the few countries to win contracts is because the contracts themselves are high risk. This is not the traditional neo-colonialism that we expected from the war. Though I am by no means defending the war or President Bush, but Iraq's oil future is largely in their hands. The state will retain a major controlling interest in production while, foreign investors act as contractors subsidized by the state.
5. Posted by Rosa | July 6, 2009 12:48 PM
Posted on July 6, 2009 12:48