Iraq’s Oil Ministry has revealed that it has sent out exclusive invitations to several major U.S. energy firms to develop the country’s huge West Qurna 2 oilfield following the withdrawal of Russian oil number two Lukoil after Washington ratcheted up sanctions on Moscow. “It’s a huge turnaround in the trajectory it [Iraq] had been headed with Russia and China, marking a massive win for us [the U.S.] and Europe,” a senior legal source who works closely with the U.S. Treasury Department exclusively told OilPrice.com last week. “Stay tuned – there’ll be more of this to come,” he added.
The significance of this sea-change in Iraq’s geopolitical leanings can barely be overstated. Following the increasing perception among the Iraqi people that the U.S. had overstayed its welcome after it removed Saddam Hussein as leader in 2003, Russia and China – in that order – looked to boost their influence across the country for three key reasons. First, it offers a huge repository of oil at the world’s joint lowest average lifting cost of $2-4 per barrel, together with large quantities of associated and non-associated gas. Second, it occupies the geographical heart of the region, lying west of Iran, north of Saudi Arabia and Kuwait, east of Jordan and Syria (with its long Mediterranean coastline offering access to further critical sea routes), and south of Turkey (affording an entry into the European continent). And third, it is a key member of the ‘Shia Crescent of Power’ geopolitical arc that stretches from Iran through Iraq, Syria, and Lebanon, where Shia communities and Iran-backed groups exert significant influence over regional politics, economics, and security. In short, if you are a global superpower or wannabe, Iraq is where you need to be.
Have fun with the terrorists – I mean Islamists.
The Iraqi leadership may want American expertise, but the intellectuals – I mean terrorists – will want them dead or gone.
See: Syrian/ISIS murder of three US servicemen today. I can only imagine the amount of ‘Security Contractors’ it will take to keep US oil workers safe.
Trump: “we will retaliate”. It’s nice to have a fully functional MAN in the White House again.
A head-chopping ISIS leader was being honoured in the White House a couple of weeks ago; they call him the Syrian honcho, or president, or something like that.
Agreed. Oh well … I guess the PEACE president has to give it a go before bunker busting the whole place
Islamic Intellectuals? They put the Is in ISIS.
Has Mark Carnage invested?
I’m thinking any business deal w/ Iraq must be executed w/ the utmost in caution.
“I’m thinking any business deal w/ Iraq must be executed w/ the utmost in caution.”
That’s for damn sure. The US companies come in, build the infrastructure, set up all the equipment and get everything running smoothly…then the Iraqis turn around and ‘nationalize’ it.
The Libs are planning a high speed rail link between Ottawa and Montreal. I suggest laying a pipeline along it; in fact, dispense with the HST altogether and save loads of money, and even make money with the pipeline.
But all the refineries would have to be retooled to take Western oil, instead of the Saudi and Russian Oil they currently use.
My worry is that the US is trying to corner the oil market. if that happens then they can dictate how much oil Alberta will be able to send and at what price. Even without cornering the market, Venezuelan crude is similar enough to what Alberta exports that one could replace the other. What happens to Alberta if they do that?
Alberta?! You mean “Megamontana”? They’ll be just fine..