From The "It's Not About Oil" Files...

By Cernig

By a massive "co-incidence", it appears the cream of the US military is encamped on the richest oil reserves in the world, and negotiating a permanent protection racket with those it catapulted into ownership.

Iraq dramatically increased the official size of its oil reserves yesterday after new data suggested that they could exceed Saudi Arabia’s and be the largest in the world.

The Iraqi Deputy Prime Minister told The Times that new exploration showed that his country has the world’s largest proven oil reserves, with as much as 350 billion barrels. The figure is triple the country’s present proven reserves and exceeds that of Saudi Arabia’s estimated 264 billion barrels of oil. Barham Salih said that the new estimate had been based on recent geological surveys and seismic data compiled by “reputable, international oil companies . . . This is a serious figure from credible sources.”

The Iraqi Government has yet to approve a national oil law that would allow foreign companies to invest. Mr Salih said that the delay was damaging Iraq’s ability to profit from oil output, robbing the country of potentially huge revenues. With oil selling for more than $125 dollars a barrel and demand rising, Mr Salih is frustrated that Iraq still struggles over the establishment of a regulatory framework. “There is a real debate in the Government and among political leaders about the type of oil management structures we should have. I am for liberalising this sector and allowing the private sector to come in to develop these vast resources.”

BP, Exxon Mobil, Chevron, Royal Dutch Shell and Total have been queuing for rights to exploit Iraqi reserves. Mr Salih confirmed that Iraq was negotiating the outlines of two-year deals with some of the companies. He was optimistic that a draft law could be approved in the near future.

Would anyone seriously like to argue that this wasn't already at least suspected by oil companies and Cheney's energy task force in early 2003? Or that it had no bearing on plans for long-term bases?

(hat tip - our inexhaustible researcher Kat)

Comments

[anderson]

Cernig,

Oh yes, these untapped and highly suspected reserves have been on the radar for quite sometime. Even a year ago, I noted that al Anbar was being evaluated to have at least another 100 billion bbls. This made the business press, but escaped the notice of mainstream "news."

[Kat]

>>BP, Exxon Mobil, Chevron, Royal Dutch Shell and Total have been queuing for rights to exploit Iraqi reserves. Mr Salih confirmed that Iraq was negotiating the outlines of two-year deals with some of the companies. He was optimistic that a draft law could be approved in the near future.

There you go -- the real, yet still unspoken, definition of 'winning the war' in Iraq.