Wednesday, July 25, 2007

Iraqi oil industry privatization underway

Despite threat from Iraq's oil workers unions, it looks like the privatization onslaught on Iraq's oil industry is now underway:
Iraq's Parliament has approved a law privatizing the country's oil-refining sector in order to lure investment and stem a fuel shortage.

The law, approved Tuesday, is a step toward relinquishing government involvement in the refining sector and, when poverty is alleviated, moving Iraqi consumers from state-subsidized to market prices for fuel.
Which always works out well for certain parties. Sounds like a recipe for riots, to me.

Nonetheless, private investment is certainly needed in Iraq although it is entirely unclear just how private interests will be any more successful than the state refineries in light of constant power shortages and sabotage, something that even the US military cannot seem to mitigate. And remember, this isn't necessarily a win for western oil companies. Russia, China and India have been engaging the Iraqi parliament on their home turf for sometime now.

The image of a flyblown carcass in the desert, surrounded by squawking vultures picking at the carrion, jumps immediately to mind. Funny that.


Blogger Mentarch said...

But how could this even remotely be profitable, when any employees ("foreigners") sent over there gets a target painted on their back the moment they land in Iraq?

This is getting ridiculous ...

6:45 PM  
Blogger spud said...

This is exactly the problem and exactly why US troops will take up garrisons, which are conveniently located near most oil fields. If the Russians and the Chinese don't make the deals, that is.

8:13 PM  
Blogger Mentarch said...

Spud: good point - however, didn't the House passed a bill preventing the establishment of permanent bases in Iraq today?

9:21 PM  
Blogger theBhc said...

Oh yes. They did. I expect that it won't mean much:

The law is a bomb

2:02 AM  

Post a Comment

<< Home