2002 November 05 Tuesday
Iraq Is About Oil: But In Whose Minds?

Some opponents of a US attack on Iraq put forward the argument that the US motive revolves around oil. There is considerable irony in this argument because while the argument about whether to attack Iraq is about oil the reason is not because of US motives. The reason that the fight over Iraq is about oil is because the opponents of the attack want to protect their oil interest and other interests in Iraq that flow directly or indirectly from Iraq's ability to produce oil. Take Russia for example:

Iraq still owes Russia from $7 billion to $10 billion for arms purchases during the war with Iran, and Russian oil companies, with their history of cooperation with Iraq, are poised to be major players in any revival of the Iraqi oil industry.

Lukoil, Russia's biggest oil company, signed a 23-year deal with Iraq five years ago to rehabilitate the country's southern oil fields, a deal potentially worth billions.

At the same time, Russia is worried that an eventual increase in Iraqi oil production could drive prices down.

Russia is hardly the only country who sees its oil interests threatened by a US invasion of Iraq. Saudi Arabia doesn't want Iraqi production to lower the world price of oil and it doesn't want US control of Iraqi oil fields to lessen US feelings of dependence on the Saudis. France wants its business relationships with Iraq to be maintained.

Share |      By Randall Parker at 2002 November 05 07:32 PM  Politics Money


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