Can anyone break down the proposed Iraq oil law for me?

Question

I'd like to find the main talking points on the Iraq oil law, such as
pros and cons?
What the average Iraqi stand to benefit from it?

Here's what I already know from reading the law;
It distributes oil revenue evenly based off a populations scale
It opens two thirds of the Iraqi oil market up to foriegn investors, which was unheard of in Saddams time, but I fail to see how it benefits the Iraqi people over a state-owned oil system, why not follow the successful business model of Kuwait.

Also, when will the Iraqi Counsel of Representatives will vote on it?

"The Iraqi Oil Law" link
http://www.krg.org/uploads/documents/Draft%20Iraq%20Oil%20and%20Gas%20Law%20English__2007_03_10_h23m31s47.pdf

Answer 1

Here's the info I've gathered on it and, in case it's not obvious, I do have a bias against it. Just so you know.

Iraqi Hydrocarbons Law, more commonly known as the Iraq Oil Law. The Republicans drafted it, the Democrat-controlled Congress made signing it as a condition for continued reconstruction aid. It's not a partisan issue, the US is holding Iraq hostage for their oil.

The Iraq Oil Law (Highlights):
-- The law would change Iraq's oil system from a nationalized model -- all but closed to U.S. oil companies -- to a privatized model open to foreign corporate control.
-- At least two-thirds of Iraq's oil would be open to foreign oil companies
-- Iraq National Oil Company would have exclusive control of only about 17 of Iraq's approximately 80 known oil fields. Remainder controlled by foreign interests.
-- Allows foreign interests (mainly US and Britain) to take 50% control of Iraq's oil reserves and takes control away from, thus destabilizes, the Iraq federal central government.
-- US oil companies can exercise long-term (30+ year) contracts without approval by the Iraqi Government
-- Production Sharing Agreements (PSAs) give foreign firms 70 per cent of the oil revenues to recover their initial investments and subsequently allow them 20 per cent of the profits without any tax or restrictions on the transferring of funds abroad."
-- Federal Oil and Gas Council (representatives from the foreign oil companies), not the Iraqi government, will have authority to approve (their own) contracts.
-- The Council, not Iraq government, will control production levels, so Iraq cannot be a part of OPEC anymore.
-- Foreign companies would not have to invest their earnings in Iraq, hire Iraqi workers, or partner with Iraqi companies."
-- The Iraqi government would not have control over oil company operations inside Iraq. Any disputes would be referred instead to pro-industry international arbitration panels.
-- No contracts would be public documents

http://www.democracynow.org/recent.pl
Sorry, I've probably gone overboard here, I'm just happy you asked this question! :-) >

Despite increased pressure from the Bush administration, the Iraq Parliament has stalled the vote until September. There has been increased objections to the Oil Law from Iraqi citizens.
-- Poll: 63% of Iraqis Oppose Privatizing Nation's Oil Resources.
-- Iraq's Government Faces Political Paralysis":
http://www.democracynow.org/article.pl?sid=07/08/07/130246
-- U.S. Steelworkers Back Striking Iraqi Oil Workers:
http://www.democracynow.org/article.pl?sid=07/08/03/1347254

Just this week, I saw that the Kurds (in the oil-producing northern regions were illegally proceeding with oil contract negotiations. In other words, they're seeking contracts without prior approval of the Iraq Central government. I'll dig up the link and post back.

-- Kurds and Sunnis have concerns about Iraqi oil legislation:
http://mobile.iht.com/articles/2007/05/02/africa/iraq.5.xhtml
-- Governor and Police Chief Killed in Diwaniya
"Reuters reports the Shiite-dominated south has become increasingly restless as factions vie for control of the oil-rich region, often pitting police loyal to one bloc against militiamen of others."
http://www.democracynow.org/article.pl?sid=07/08/13/1346218

Found this article too from Jan 9, 2003:
-- Why Is the U.S. Preparing to Attack Iraq and Not North Korea? a Discussion On Iraq's Oil and the Potential to Break Opec
http://www.democracynow.org/article.pl?sid=03/04/07/0316225&mode=thread&tid=14

Answer 2

i admire yet yet another lib sufferer of spin. the entire militia consumes below 6% of the entire cost selection. If companies and the "so observed as" acceptable 10% wealthy paid a hundred% in taxes -- it does no longer touch a $14 trillion debt. the main important drain on tax payer money and the familiar public of the nationwide annual deficits are the states and federal government by potential of paying and growing to be itself from tax sales. What extreme college government economics type did you're taking?

Answer 3

This "redistribution of wealth" seems like socialism, to me...
Glad we could come and show the Iraqis how their money should be distributed....