Who is ultimately in control over Iraq's Oil? Who benefits from their profit margin and how much?

Question

Most would agree that the United States has some stake in Iraq's Oil revenue and profits since Iraq is our number 1 supplier. The deeper question is how much of the profit from the sale of Iraq's oil is going toward the war efforts to stabilize Iraq and their faltering economy?

Secondly, Why are we having to pay nearly $3.00 per gallon for gas at U.S. Pumps? Who is really the beneficiary of the Profit? Certainly, not the consumers!

Answer 1

Actually the Iraqi government has full control of their oil. Unfortunatly due to security issues due to the war Iraq is not producing anything near the same amount of oil they were pre-war.

Answer 2

The Iraqi government owns the Iraqi oil fields and is in full control of them.

The US has _no_ 'stake' in Iraq's oil fields and we import most of our oil from central and south America.

And the reason why oil prices have risen is the simple laws of supply and demand. China is becoming the world's largest oil importer and the increased demand is driving up prices. And the beneficiaries of all this profits are the governments of oil exporting countries.

Next question?

Answer 3

Your information and therefore your assertions are entirely wrong.

(1) Canada is the number one supplier for crude oil to the United States, not Iraq. As outlined here: http://tonto.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_m.htm for the month of January 2007 alone, the US imported the following quantities of crude oil (units marked in barrels):

76,568,000 - Canada
71,100,000 - the entire Persian Gulf

Iraq accounted for only 1,824,000 barrels out of its share of Persian Gulf crude production. Unlike what was erroneously stated prior, Latin America provides us with almost nothing in terms of our total supply. Canada is the leading supplier for at least the next two decades, which can be read on here: http://www.dailyfueleconomytip.com/?p=303

(2) Iraq's petroleum is controlled by the Iraqi National Oil Corporation (NOC). It is the norm in most countries for petroleum and natural gas to be run by nationalized firms. All the funds from Iraq's petroleum exports goto the Iraqi government.

While there are scams associated with the production and distribution of petroleum (which I will not elaborate on here, and having worked on site with the NOC, can state unequivocally they do NOT have full control), overall the Iraqi economy is doing surprisingly well considering the circumstances, having been rated by the World Bank with a figure of 4% GDP growth for 2006, details of which are here: http://www.msnbc.msn.com/id/16241340/site/newsweek/

In terms of current production of crude, the Iraqi government is clocking , as this GAO report here http://www.gao.gov/new.items/d061130t.pdf quite clearly states:

"Crude oil production capacity was reported as about 2.4 million barrels per day (mbpd), below the prewar level of 2.6 mbpd and the desired goal of 3 mbpd."

Reconstruction suffers as a result, as the GAO report further elaborates. This does not prevent the industrious Iraqi people from engaging in successful commerce, as evinced by the GDP growth and the rise of cross-border trade in the absence of crippling sanctions.

(3) Competition for crude oil has risen because of economies such as China and India picking up steam. The increases in prices are reflected by a multiplicity of factors, which you can read about here: http://tonto.eia.doe.gov/oog/info/twip/twip.asp

If you want to engage in Marxist rhetoric about the evils of profit, you may want to pick up some reputable source attribution for your claims. It is probably safe to say you have absolutely no background in what you speak of, and this is why your Question and everything associated with it carries such irreparable flaws.

Answer 4

GOD. Greatest Origin Divinity.
PS, try riding a bicycle it may help burn some of the fat we americans are famous for having on our bodies.

Answer 5

one name Haliburton former presidernt of Haliburton, Dick Chaney. How did the accomplish this feat the yet unheard of No Bid Contract given by the President.

Answer 6

uh I am going to guess its the companies that drill there?????