So what you're saying, is this:
We are setting up a puppet government to run Iraq in order to force Iraq to sell her oil to us, and not China.
How will they control the prices? How are they going to justify selling to America when China is offering them more money per barrel?
Do you think they could get away with that?
Excellent questions Scott. Let's take them one at a time.
1. How will they control the prices?
They don't have to control the prices when the oil is basically free.
2. How are they going to justify selling to America when China is offering them more money per barrel?
They don't have to justify oil prices when American and UK oil companies are guaranteed a percentage of the oil for the next 30 years.
3. Do you think they could get away with that?
They already have.
Now the next question that you are most likely going to ask me is... How the hell do they plan on getting basically free oil from Iraq for the next 30 years without breaking the law?
The answer is three simple letters. PSA production sharing agreement.
A production sharing agreement is where developing nation is helped by another nation to extract some of their resources (typically oil) for an agreed percentage of the resource. Example: small country "A" wants to capitalize on some of it's oil reserves but it lacks the equipment and expertise. Country "B" has the resources to extract this oil for country "A". They enter into an agreement to extract this oil for a percentage. Country "B" is taking a risk and putting out the costs, but in return they capitalize if they are successful in the extraction.
Now that you know what a PSA is, lets look at Iraq and the PSA they are signing into law with American and UK oil companies. When you hear about the Iraqi government meeting certain benchmarks, they are talking about the PSA's. Now once these PSA's are signed into law by the government that we helped into power in Iraq, the American oil companies will have a guaranteed source of oil for the next 30 years. The problem with this, it's theft on the grandest of scales. Forcing Iraq to share it's oil for the next 30 years in return for helping them extract their oil??? Iraq's oil is some of the most easily extracted oil in the world. Right now the current cost is fifty cents to a dollar per barrel. As far as know how... Iraq has been extracting it's own oil for decades, they do not need our help in that area. They will need new equipment, but with the worlds third largest oil reserve, I don't think credit would be a problem. So why did Iraq need to sign these PSA's? They are giving away the majority of their known fields wich account for 64% of Iraq's oil. At an oil price of $40 per barrel, Iraq stands to lose between $74 billion and $194 billion over the lifetime of the proposed contracts, from only the first 12 oilfields to be developed. These estimates, based on conservative assumptions, represent between two and seven times the current Iraqi government budget.
Now do you see how America can just take the oil from Iraq right from under the nose of China? Interesting isn't it?
