Oil groups snub US on Iraq deals

[ze_dscherman]

Some of the world's biggest oil companies have warned the US administration that they will not make large investments in Iraq while the security situation remains so dangerous.

The reluctance of the industry to invest long-term is a setback to US efforts to revive the oil industry and rebuild the economy. Industry experts estimate it would cost $30bn-$40bn to tap the full potential of Iraq's vast oil deposits.

SNIP

Such concerns were amplified on Thursday by Sir Philip Watts, chairman of Royal Dutch/Shell, who told his company's results meeting: "The safety our people is paramount. There has to be proper security, legitimate authority and a legitimate process . . . by which we will be able to negotiate agreements that would be longstanding for decades. We wouldn't go into that situation unless these conditions were satisfied because we are a long-term business doing long-term projects and we need the framework in which we can make this sort of investment decision."


Full story: http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1058868145993&p=1012571727092

[grytpype]

1. The World is revolting against Bush...

It's THE WAR ON TERRA 2: THE REVENGE OF TERRA

[nothingshocksmeanymore]

2. So far a British company, now Royal Dutch

It's pretty clear nobody wants to go through another "Iran in the 70's"...the last time we freed a country in that region from it's despotic leader, installed our own corporate friendly gov't and got our ass!

[NYC]

3. How does this relate?

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=32736&mesg_id=32736&page=

BP and Shell were among the first foreign companies to benefit from resumption of Iraqi oil exports when the country signed its first long-term supply contracts yesterday since the war was declared over.

http://news.independent.co.uk/world/middle_east/story.jsp?story=427054

The Iraqi contracts indicate that the oil ministry believes that looting and sabotage at Iraqi oil facilities will not prevent it from honouring export contracts.

The news will also be seen as evidence that conditions in the country are becoming more stable.

Under the deal, Iraq will supply 645,000 barrels per day (bpd) for export, or 20 million barrels a month, from its Gulf port of Mina al-Bakr, from August until the end of December. That will be an increase on the 450,000 bpd produced in July but will still leave Iraqi exports at a third of pre-war levels.