Sunday, November 30, 2008

Iraq Shell Oil Contract on the Rocks

Reuter's reports on the Shell contact problems.

A spokesman for the Oil Ministry, Asim Jihad, said the committee had no legal basis to challenge the deal, which Shell says gives exclusive rights to the joint venture to all natural gas collected as a by-product of oil production in Basra fields.

"Shell will be the sole company entitled to deal or process gas in southern Iraq," the statement said. "We call this a monopoly on Iraqi gas ... Shell will seize everything."

It added that if Oil Minister Hussain Shahristani does not respond to their complaint, "we will resort to the constitution and adopt procedures ... to safeguard Iraqi resources".

Bush has been quoted this holiday weekend as saying that he "liberated Iraq". Bush says this even as he holds Iraq oil money hostage in an attempt to intimidate Iraqis into unfair oil contracts. This time-limited act of extortion is sure to fail as Americans are in no mood for a second civil war in Iraq nor do we have the resources for a second surge of US forces in Iraq either.

Robert Baer, a former CIA Officer has written a new book in which he makes the following admissions.

Baer sides with those who advocate negotiation rather than confrontation with Iran. He seems to believe that a long-term deal with Iran is possible. In exchange for good behavior, he suggests, the United States should give Iran security guarantees, establish joint patrols in the Persian Gulf, grant Iran a security role in Iraq and Afghanistan, and remove the rationale for Iranian meddling by settling the Israeli-Palestinian conflict.

And this striking comment.

"----- On almost every page of his book, he bombards the reader with the verbal equivalent of shock and awe. "Iraq is lost. Iran won it," he writes. "Iran's empire is already half built; we can't stop it now short of starting World War III."

This is how Bush lost the war in Iraq, because he "liberated Iraqis" on a complete and total falsehood of democracy as it wasn't actually about liberation but oil control, and thus, it shows how incredibly stupid the Bush Administration's gamble has been. This gamble that has thrown everything into Iran's ball court because of this colossal lied about war. Perchance Bush stupidly thought a democratic Iraq would gratefully hand-over control of all it’s oil resources, showing thus, the Bush Administration enormous stupidity and incompetence. Who knows, maybe God made Bush do it?

Joseph Stiglitz, the Nobel-winning economist has this to say about the Bush Administration.

Q. Who was at fault for the crisis? Who was asleep at the switch? Were the indicators already visible in the 1997-98 financial crises? Could more monitoring have averted the problem? Are derivatives markets still viable?

A. This is a man-made crisis. It didn’t have to happen. It was the result of macro-economic policies in the United States – in particular, a tax cut for the rich which did not stimulate
the economy – combined with the Iraqi war, which led to soaring oil prices. These put the burden of keeping the economy going on monetary policy. The Federal Reserve responded in a shortsighted way: it provided ample credit with low interest rates. Combined with lax regulations, it was an explosive mixture – and it exploded.

In a nutshell - its all the Bush Administration's fault, completely the Bush Administration's fault for the loss of everything, including oil resources in the Mideast. A bunch of corrupt, utterly stupid guys got into office, destroyed the US economy and lost control of all the Mideast oil. I wonder if the realization of what happened has truly hit the halls of ExxonMobil and BP's corporate global agenda vision department? The fact that big oil is totally screwed this Thanksgiving weekend - thanks to Bush for having truly liberating Iraq, losing control of the entire Mideast oil resource. We are well on our bloody way to a renewable energy future, and those Big 3 automakers should plan on bankruptcy a few years from now if they can't find away around fossil fuel powered vehicles. Nobody is going to give them a bailout forever.

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