B12 Solipsism

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China Reaps Biggest Benefits of Iraq Oil Boom

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A Couple of Jokers
A Couple of Jokers

Oh, dandy. Aren’t you  glad that Bush Cheney and that merry band of war criminals decided to piss away trillions of dollars and uncounted lives in the sands of Iraq in order to free Iraqi oil from Saddam Hussein?

Since the American-led invasion of 2003, Iraq has become one of the world’s top oil producers, and China is now its biggest customer.

China already buys nearly half the oil that Iraq produces, nearly 1.5 million barrels a day, and is angling for an even bigger share, bidding for a stake now owned by Exxon Mobil in one of Iraq’s largest oil fields.

“The Chinese are the biggest beneficiary of this post-Saddam oil boom in Iraq,” said Denise Natali, a Middle East expert at the National Defense University in Washington. “They need energy, and they want to get into the market.”

“We lost out,” said Michael Makovsky, a former Defense Department official in the Bush administration who worked on Iraq oil policy. “The Chinese had nothing to do with the war, but from an economic standpoint they are benefiting from it, and our Fifth Fleet and air forces are helping to assure their supply.”

 

(click here to continue reading China Reaps Biggest Benefits of Iraq Oil Boom – NYTimes.com.)

Six Thousand Thirteen Too Many
Six Thousand Thirteen Too Many

Especially when it turns out Exxon Mobil and their ilk expected to be able to reap their usual massive profits…

Notably, what the Chinese are not doing is complaining. Unlike the executives of Western oil giants like Exxon Mobil, the Chinese happily accept the strict terms of Iraq’s oil contracts, which yield only minimal profits. China is more interested in energy to fuel its economy than profits to enrich its oil giants.

Chinese companies do not have to answer to shareholders, pay dividends or even generate profits. They are tools of Beijing’s foreign policy of securing a supply of energy for its increasingly prosperous and energy hungry population. “We don’t have any problems with them,” said Abdul Mahdi al-Meedi, an Iraqi Oil Ministry official who handles contracts with foreign oil companies. “They are very cooperative. There’s a big difference, the Chinese companies are state companies, while Exxon or BP or Shell are different.”

China is now making aggressive moves to expand its role, as Iraq is increasingly at odds with oil companies that have cut separate deals with Iraq’s semiautonomous Kurdish region.

Or as Jeff Danziger’s comic puts it:

jeff Danziger 130604

Written by Seth Anderson

June 4th, 2013 at 8:05 am

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