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.Which always works out well for certain parties. Sounds like a recipe for riots, to me.
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.
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.