Results 1 to 17 of 17

Thread: Just follow the money to understand why.....

  1. #1
    All Pro
    Join Date
    Aug 2006
    Posts
    5,550
    Post Thanks / Like

    Just follow the money to understand why.....

    [B][SIZE="4"]Deals with Iraq are set to bring oil giants back [/SIZE][/B]
    By Andrew E. Kramer

    [url]http://www.iht.com/bin/printfriendly.php?id=13817574[/url]

    Thursday, June 19, 2008
    BAGHDAD: Four Western oil companies are in the final stages of negotiations this month on contracts that will return them to Iraq, 36 years after losing their oil concession to nationalization as Saddam Hussein rose to power.

    Exxon Mobil, Shell, Total and BP — the original partners in the Iraq Petroleum Company — along with Chevron and a number of smaller oil companies, are in talks with Iraq's Oil Ministry for no-bid contracts to service Iraq's largest fields, according to ministry officials, oil company officials and an American diplomat.

    The deals, expected to be announced on June 30, will lay the foundation for the first commercial work for the major companies in Iraq since the American invasion, and open a new and potentially lucrative country for their operations.

    [B]The no-bid contracts are unusual for the industry, and the offers prevailed over others by more than 40 companies, including companies in Russia, China and India. [/B]The contracts, which would run for one to two years and are relatively small by industry standards, would nonetheless give the companies an advantage in bidding on future contracts in a country that many experts consider to be the best hope for a large-scale increase in oil production.

    [B]There was suspicion among many in the Arab world and among parts of the American public that the United States had gone to war in Iraq precisely to secure the oil wealth these contracts seek to extract[/B]. The Bush administration has said that the war was necessary to combat terrorism. It is not clear what role the United States played in awarding the contracts; there are still American advisers to Iraq's Oil Ministry.

    Sensitive to the appearance that they were profiting from the war and already under pressure because of record high oil prices, senior officials of two of the companies, speaking only on the condition that they not be identified, said they were helping Iraq rebuild its decrepit oil industry.

    [B]For an industry being frozen out of new ventures in the world's dominant oil-producing countries, from Russia to Venezuela, Iraq offers a rare and prized opportunity.[/B]

    While enriched by $140 per barrel oil, the oil majors are also struggling to replace their reserves as ever more of the world's oil patch becomes off limits. Governments in countries like Bolivia and Venezuela are nationalizing their oil industries or seeking a larger share of the record profits for their national budgets. Russia and Kazakhstan have forced the major companies to renegotiate contracts.

    The Iraqi government's stated goal in inviting back the major companies is to increase oil production by half a million barrels per day by attracting modern technology and expertise to oil fields now desperately short of both. The revenue would be used for reconstruction, although the Iraqi government has had trouble spending the oil revenues it now has, in part because of bureaucratic inefficiency.

    For the American government, increasing output in Iraq, as elsewhere, serves the foreign policy goal of increasing oil production globally to alleviate the exceptionally tight supply that is a cause of soaring prices.

    The Iraqi Oil Ministry, through a spokesman, said the no-bid contracts were a stop-gap measure to bring modern skills into the fields while the oil law was pending in Parliament.

    It said the companies had been chosen because they had been advising the ministry without charge for two years before being awarded the contracts, and because these companies had the needed technology.

    A Shell spokeswoman hinted at the kind of work the companies might be engaged in. "We can confirm that we have submitted a conceptual proposal to the Iraqi authorities to minimize current and future gas flaring in the south through gas gathering and utilization," said the spokeswoman, Marnie Funk. "The contents of the proposal are confidential."

    While small, the deals hold great promise for the companies.

    [B]"The bigger prize everybody is waiting for is development of the giant new fields," Leila Benali, an authority on Middle East oil at Cambridge Energy Research Associates, said in a telephone interview from the firm's Paris office. The current contracts, she said, are a "foothold" in Iraq for companies striving for these longer-term deals.[/B]

    Any Western oil official who comes to Iraq would require heavy security, exposing the companies to all the same logistical nightmares that have hampered previous attempts, often undertaken at huge cost, to rebuild Iraq's oil infrastructure.

    And work in the deserts and swamps that contain much of Iraq's oil reserves would be virtually impossible unless carried out solely by Iraqi subcontractors, who would likely be threatened by insurgents for cooperating with Western companies.

    Yet at today's oil prices, there is no shortage of companies coveting a contract in Iraq. It is not only one of the few countries where oil reserves are up for grabs, [B]but also one of the few that is viewed within the industry as having considerable potential to rapidly increase production.[/B]

    David Fyfe, a Middle East analyst at the International Energy Agency, a Paris-based group that monitors oil production for the developed countries, said he believed that Iraq's output could increase to about 3 million barrels a day from its current 2.5 million, though it would probably take longer than the six months the Oil Ministry estimated.

    Fyfe's organization estimated that repair work on existing fields could bring Iraq's output up to roughly four million barrels per day within several years. After new fields are tapped, Iraq is expected to reach a plateau of about six million barrels per day, Fyfe said, which could suppress current world oil prices.

    The contracts, the two oil company officials said, are a continuation of work the companies had been conducting here to assist the Oil Ministry under two-year-old memorandums of understanding. The companies provided free advice and training to the Iraqis. This relationship with the ministry, said company officials and an American diplomat, was a reason the contracts were not opened to competitive bidding.

    A total of 46 companies, including the leading oil companies of China, India and Russia, had memorandums of understanding with the Oil Ministry, yet were not awarded contracts.

    The no-bid deals are structured as service contracts. The companies will be paid for their work, rather than offered a license to the oil deposits. [B]As such, they do not require the passage of an oil law setting out terms for competitive bidding. [/B]The legislation has been stalled by disputes among Shiite, Sunni and Kurdish parties over revenue sharing and other conditions.

    [B]The first oil contracts for the majors in Iraq are exceptional for the oil industry.[/B]

    [B]They include a provision that could allow the companies to reap large profits at today's prices: the ministry and companies are negotiating payment in oil rather than cash.[/B]

    "[B]These are not actually service contracts," Benali said. "They were designed to circumvent the legislative stalemate" and bring Western companies with experience managing large projects into Iraq before the passage of the oil law.[/B]

    A clause in the draft contracts would allow the companies to match bids from competing companies to retain the work once it is opened to bidding, according to the Iraq country manager for a major oil company [B]who did not consent to be cited publicly discussing the terms.[/B]

    Assem Jihad, the Oil Ministry spokesman, said the ministry chose companies it was comfortable working with under the charitable memorandum of understanding agreements, and for their technical prowess. "Because of that, they got the priority," he said.

    In all cases but one, the same company that had provided free advice to the ministry for work on a specific field was offered the technical support contract for that field, one of the companies' officials said.

    The exception is the West Qurna field in southern Iraq, outside Basra. There, the Russian company Lukoil, which claims a Saddam-era contract for the field, had been providing free training to Iraqi engineers, but a consortium of Chevron and Total, a French company, was offered the contract. A spokesman for Lukoil declined to comment.

    Charles Ries, the chief economic official in the American Embassy in Baghdad, described the no-bid contracts as a bridging mechanism to bring modern technology into the fields before the oil law was passed, and as an extension of the earlier work without charge.

    To be sure, these are not the first foreign oil contracts in Iraq, and all have proved contentious.

    The Kurdistan regional government, which in many respects functions as an independent entity in northern Iraq, has concluded a number of deals. Hunt Oil Company of Dallas, for example, signed a production-sharing agreement with the regional government last fall, though its legality is questioned by the central Iraqi government. The technical support agreements, however, are the first commercial work by the major oil companies in Iraq.

    The impact, experts say, could be remarkable increases in Iraqi oil output.

    While the current contracts are unrelated to the companies' previous work in Iraq, in a twist of corporate history for some of the world's largest companies, all four oil majors that had lost their concessions in Iraq are now back.

    But a spokesman for Exxon said the company's approach to Iraq was no different from its work elsewhere.

    "Consistent with our longstanding, global business strategy, ExxonMobil would pursue business opportunities as they arise in Iraq, just as we would in other countries in which we are permitted to operate," the spokesman, Len There is an enormous amount of oil in Iraq," Raymond said. "We were part of the consortium, the four companies that were there when Saddam Hussein threw us out, and we basically had the whole country."D'Eramo, said in an e-mailed statement.

    But the company is clearly aware of the history. In an interview with Newsweek last fall, the former chief executive of Exxon, Lee Raymond, praised Iraq's potential as an oil-producing country and added that Exxon was in a position to know. "

  2. #2
    Undrafted Free Agent
    Join Date
    May 2008
    Posts
    200
    Post Thanks / Like
    [QUOTE=intelligentjetsfan;2591092][B][SIZE="4"]Deals with Iraq are set to bring oil giants back [/SIZE][/B]
    First off, great find! [/QUOTE]

    [QUOTE][B]
    Exxon Mobil, Shell, Total and BP — the original partners in the Iraq Petroleum Company — along with Chevron and a number of smaller oil companies, are in talks with Iraq's Oil Ministry for no-bid contracts to service Iraq's largest fields, according to ministry officials, oil company officials and an American diplomat.[/B][/QUOTE]
    Thats no surprise.
    [B][QUOTE]
    The deals, expected to be announced on June 30, will lay the foundation for the first commercial work for the major companies in Iraq since the [U]American invasion[/U], and open a new and potentially lucrative country for their operations.[/QUOTE][/B] It seems like nothing else has happened in this country except invasions and oil deals. What happen to "operation Iraqi freedom"?...better yet, what the hell happen to Bin Laden?

    [B][QUOTE]The [U]Iraqi government's [/U]stated goal in inviting back the major companies is to increase oil production by half a million barrels per day by attracting modern technology and expertise to oil fields now desperately short of both. The revenue would be used for reconstruction, although the Iraqi government has had trouble spending the oil revenues it now has, in part because of bureaucratic inefficiency.[/QUOTE][/B] Iraqi's Government? Saddam is dead (allegedly). Who's really calling the shots here?

    [B][QUOTE]For the American government, increasing output in Iraq, as elsewhere, serves the foreign policy goal of [U][B][I]increasing oil production globally [/I][/B][/U]to alleviate the exceptionally tight supply that is a cause of soaring prices.[/QUOTE][/B] So you mean to tellme that this isnt even about servicing the americal oil crisis, this is about getting a big chunk of this global industry. This is the answer that everyone's been looking for right here. With all of the mayhem thats going on in Iraq, how are these companies going to stay safe? The NEED the soldiers over there. This is why they wont bring home. they need them now and for a LONG TIME for that matter. There's car bombings in bagdad everyday. you think these companies can just come in and take as much oil as they like under private contracts? the truth is begining to really come out people.

    You see, it makes sense. The artificial scarcity of oil spikes the price. This is much bigger than just getting rich. This is more about staying rich and getting richer and having "us" allow it.

    When you spike the hell out of these prices and then its put up in front of you that it will aleviate the rise in pricing if we just get this oil then governments logic is that they expect us as citizens to say "damn, thats messed up what we're doing over there, but 1 gallon in my city is 5 dollars a gallon when it was 2 dollars not to long ago and I have this new Hummer with a 60 gallon gas tank and 9 miles to the gallon I have to keep juiced so I can drive 1 and a half hours a day to work than back home (because the cities are typically built outwards with the exceptions to places like nYc), outside of my personal adventures. Oh, and dont forget the other half of my money going to taxes.

    They use the spike also to have people compromise with themselves and their own "well-being" in contrast to someone elses well-being in a country that they've never been to, towards people they've never met in a country on the other side of the planet.

    They're doing the same thing with oil that they've been doing with Diamonds. All this money for such a precioius mineral. Yet, these diamonds you can get anywhere basically. They even have compression gadgets that you can make your own diamonds. point being, where are all the trees? They trees are disappearing yet Diamond's are supposed to be the most precious thing. What about bee's when's the last time anyone seen a bee?

    You hear about all these plans about the oil, when's the last time we've seen a thorough plan to get bin laden?

    I got that answer for you right here. (the anchors views are the anchors views. Im just stating the actual information)
    [url]http://youtube.com/watch?v=vomhVWZxZ4A[/url]
    Last edited by villain_the_foe; 06-19-2008 at 07:46 AM.

  3. #3
    All Pro
    Join Date
    Aug 2006
    Posts
    5,550
    Post Thanks / Like
    [QUOTE=villain_the_foe;2591107]Thats no surprise.
    It seems like nothing else has happened in this country except invasions and oil deals. What happen to "operation Iraqi freedom"?...better yet, what the hell happen to Bin Laden?

    Iraqi's Government? Saddam is dead (allegedly). Who's really calling the shots here?

    This is the answer that everyone's been looking for right here. With all of the mayhem thats going on in Iraq, how are these companies going to stay safe? The NEED the soldiers over there. This is why they wont deploy them now or for a LONG TIME for that matter. There's car bombings in bagdad everyday. you think these companies can just come in and take as much oil as they like under private contracts? the truth is begining to really come out people.

    You see, it makes sense. The artificial scarcity of oil spikes the price. This is much bigger than just getting rich. This is more about staying rich and getting richer and having "us" allow it.

    When you spike the hell out of these prices and then its put up in front of you that it will aleviate the rise in pricing if we just get this oil then governments logic is that they expect us as citizens to say "damn, thats messed up what we're doing over there, but gallon in my city is 5 dollars a gallon when it was 2 dollars not to long ago and I have this new Hummer with a 60 gallon gas tank and 9 miles to the gallon I have to keep juiced so I can drive 1 and a half hours a day to work than back home (because the cities are typically built outwards with the exceptions to places like nYc), outside of my personal adventures.

    They use the spike also to have people compromise with themselves and their own "well-being" in contrast to someone elses well-being in a country that they've never been to, towards people they've never met in a country on the other side of the planet.

    They're doing the same thing with oil that they've been doing with Diamonds. All this money for such a precioius mineral. Yet, these diamonds you can get anywhere basically. They even have compression gadgets that you can make your own diamonds. point being, where are all the trees? They trees are disappearing yet Diamond's are supposed to be the most precious thing. What about bee's when's the last time anyone seen a bee?

    You hear about all these plans about the oil, when's the last time we've seen a thorough plan to get bin laden?

    I got that answer for you right here. (the anchors views are the anchors views. Im just stating the actual information)
    [url]http://youtube.com/watch?v=vomhVWZxZ4A[/url][/QUOTE]

    when you read articles like this it makes the people who believe the propaganda about this war look even more foolish. Compare the information from the story and your post to the drivel from our administration about the reasons for war;

    1. weapons of mass destruction at the time of invasion(false)

    2. connection between Bin Laden and Hussein (false)

    3. Bush wanted to avenge father for Hussein wanting to kill him (are you series with this one?)

    Now read these reasons and compare them with the dollar and sense facts from this story. Its actually insulting to our intelligence. And the people who buy the propaganda that "we cannot cut and run" and "we must see it through till the end" have allowed this criminal adminstration to make the people who got them in office very rich.

  4. #4
    Hall Of Fame
    Join Date
    Jan 2006
    Location
    Long Island & Section 337
    Posts
    4,859
    Post Thanks / Like
    What a surprise, yet another corporations are evil, workers of the world unite, rich people suck thread from IJF. The only surprise is that you haven't yet rated it 5 stars.

  5. #5
    All Pro
    Join Date
    Aug 2006
    Posts
    5,550
    Post Thanks / Like
    [QUOTE=HDCentStOhio;2591117]What a surprise, yet another corporations are evil, workers of the world unite, rich people suck thread from IJF. The only surprise is that you haven't yet rated it 5 stars.[/QUOTE]

    what is also not a surprise is that the content of the article does not bother you. :zzz::zzz::zzz:

    I never said that "all corporations are evil" and "all rich people suck". Just the ones that are willing to use the average American as pawns in their global chess game. Just the ones that are willing to risk the security of our country to make themselves and their friends insainly rich.

    But keeping mouthing propaganda. I just wish that, at the very least, you would get a cut of the action considering what a good lemming you are.

  6. #6
    Undrafted Free Agent
    Join Date
    May 2008
    Posts
    200
    Post Thanks / Like
    [QUOTE=intelligentjetsfan;2591112]when you read articles like this it makes the people who believe the propaganda about this war look even more foolish. Compare the information from the story and your post to the drivel from our administration about the reasons for war;

    1. weapons of mass destruction at the time of invasion(false)

    2. connection between Bin Laden and Hussein (false)

    3. Bush wanted to avenge father for Hussein wanting to kill him (are you series with this one?)

    Now read these reasons and compare them with the dollar and sense facts from this story. Its actually insulting to our intelligence. And the people who buy the propaganda that "we cannot cut and run" and "we must see it through till the end" have allowed this criminal adminstration to make the people who got them in office very rich.[/QUOTE]


    You're right, it does make the people look foolish. We just need to keep informing them. At one time I was foolish, and wanted to blow up that whole half of the planet...but that was my anger given that Im from new york and could smell the towers from where I lived. But for these people to get on TV and serously try to play me for a moron I take just as personal.

    The public think it cant happen because it hasnt happen in a long time. I dont know any Native people, why's that? Its like you have to either go to Montana, New Mexico or a casino to see a Native american. its like when you seen them you've just had a "sighting" like its a UFO or something. Thats the Genocide that this country was based on. Every world leading government has had major bones in the closet and the closet was basically left wide open.

    This regime isnt for the people whatsoever. Its about the companies. Better yet, Government IS a company. 10, 20, 50, 100 million given to office candidates to run for office from industries and companies for what? just to give them 100 million? no....Its to pursuade politics in their favor. Who is the president going to listen to, the person who gave them 50 million to run or the citizen who makes 30,000 and doesnt even go to church on Sunday because there home wathing the Jets get their ass whooped on (that better change this year!). They're influenced by the money. And the biggest industries driving politics in in the US is the automobile and the oil industry.

    Look at Enron for example. Ken Lay, Schilling and the rest of these dudes went to jail right? I have a question though. What jails are these people going to?

    Regular "Joe" from around the way gets sent to rikers or singsing and we hear about what happens to these people.

    These Enron dudes are celebrities in many ways. We dont hear about anything happening to them or going on in jail. Suge Knight was in jail for like 9 years and we damn near knew what happened with him everyday and we've never met him. Yet the Enron click basically fell off the face of the earth???? No you know why? if giving a candidate 100 million dollars to run for office cant even get you out of jail.....then what the hell is the point?

    These people dont pay for their crimes, but if you run a red light or drink a corona on the street they will put you behind bars so quick you would think that you were meant to be there.

  7. #7
    Jets Insider VIP
    Join Date
    Aug 2005
    Posts
    13,179
    Post Thanks / Like
    Obvviously after all the heavy lifting the liberal elites in the US would prefer that China and Russia get the commercial oil deals in Iraq instead of the US and our European allies. That would make the US going into Iraq the feel good story of the decade.

  8. #8
    Hall Of Fame
    Join Date
    Feb 2005
    Posts
    14,473
    Post Thanks / Like
    [quote=villain_the_foe;2591107]Thats no surprise.
    Iraqi's Government? Saddam is dead (allegedly). Who's really calling the shots here? [/quote]

    Is there a single conspiracy theory you don't believe in?

  9. #9
    Hall Of Fame
    Join Date
    Jan 2006
    Location
    Long Island & Section 337
    Posts
    4,859
    Post Thanks / Like
    [QUOTE=intelligentjetsfan;2591122]what is also not a surprise is that the content of the article does not bother you. :zzz::zzz::zzz:

    I never said that "all corporations are evil" and "all rich people suck". Just the ones that are willing to use the average American as pawns in their global chess game. Just the ones that are willing to risk the security of our country to make themselves and their friends insainly rich.

    But keeping mouthing propaganda. I just wish that, at the very least, you would get a cut of the action considering what a good lemming you are.[/QUOTE]

    I do own XLE so call me guilty. What's in your portfolio- or do you invest only in "socially responsible" funds?

  10. #10
    All Pro
    Join Date
    Aug 2006
    Posts
    5,550
    Post Thanks / Like
    [QUOTE=Winstonbiggs;2591135]Obvviously after all the heavy lifting the liberal elites in the US would prefer that China and Russia get the commercial oil deals in Iraq instead of the US and our European allies. [B]That would make the US going into Iraq the feel good story of the decade[/B].[/QUOTE]

    The bottom line is that when people continue to piss in the big pool, we all eventually get sick.

  11. #11
    Undrafted Free Agent
    Join Date
    May 2008
    Posts
    200
    Post Thanks / Like
    SOrry
    Last edited by villain_the_foe; 06-19-2008 at 09:14 AM.

  12. #12
    Undrafted Free Agent
    Join Date
    May 2008
    Posts
    200
    Post Thanks / Like
    [QUOTE=doggin94it;2591145]Is there a single conspiracy theory you don't believe in?[/QUOTE]

    Actually yes.
    #1. I dont believe that 2 planes can knock down 3 buildings in its own footprint with the basements of all the buildings blown out.

    #2. I dont believe the Magic bullet Theory.

    #3. I dont believe that JFK and RFK were killed by lone nuts with medical records.

    #4. I dont believe that JFK Jr. suddenly had a severe case of suicide come over him and decide to kill his wife and unborn child too.

    #5. I dont believe that I should let police check me when I get on the subway because of the theory of "random searches".

    #6. I dont believe that Ray killed Martin Luther King and just left his bag on the curb so he can be identified and sped off in a "white" car so everyone could notice...and for some strange reason, all of the black cops that usually service the area was mysteriously pulled from patrol during the precise time.

    #7. I dont believe that the "northwoods" documents could be put to paper and even decided on, all they way up to the secretary of defense....which is an outright terriorist act and a way to deceive the people. No,....wait, I do believe that one. I've read the papers myself.

    yeah, there's a sh!t load of conspiracy theories that I dont believe in sir (damn, you caught me).

    Until this government gives me something to believe in, or you defend me in court, I'll either do one of 2 things, i'll believe what I feel makes the most sense, or I'll plead the 5th in court lol.
    Last edited by villain_the_foe; 06-19-2008 at 09:57 AM.

  13. #13
    Jets Insider VIP
    Join Date
    Aug 2005
    Posts
    13,179
    Post Thanks / Like
    [QUOTE=HDCentStOhio;2591158]I do own XLE so call me guilty. What's in your portfolio- or do you invest only in "socially responsible" funds?[/QUOTE]

    When people are Freezing and hungry because they can't afford food or to heat their houses I'm sure you will blame this on the thousands of employees of those evil corporations that are putting their lives on the line so you can be comfortable while praising the likes of Chavez and Ahmadinejad and the former Sadam.

    Just an aside if the French and Russians weren't so hot to do business in Iraq when Sadam was in power the inspections would never have stopped in the first place and we could have never gone in. Every one forgets that the UN security council was the enforcer of the truce and they stopped enforcing to line their own pockets. Not to mention the head of the UN's brother stealing millions in the oil for food program.

  14. #14
    Undrafted Free Agent
    Join Date
    May 2008
    Posts
    200
    Post Thanks / Like
    [QUOTE=HDCentStOhio;2591158]I do own XLE so call me guilty. What's in your portfolio- or do you invest only in "socially responsible" funds?[/QUOTE]

    Is there still even such a thing as a socially responsible fund? lmao. this world is so twisted and corrupted that its even affecting the NFL.

    [SIZE="7"]18-1 :yes:[/SIZE]

    we're so concerned about the separation of state and church that we forget to keep separate state and industry. the only think that state should ben aligned with is "WE THE PEOPLE". being a state official means that you serve the public...whens the last time that has happened on a consistent scale? Not in my life time, or any one on this forums lifetime.
    Last edited by villain_the_foe; 06-19-2008 at 10:08 AM.

  15. #15
    Hall Of Fame
    Join Date
    Apr 2003
    Location
    Philly
    Posts
    38,782
    Post Thanks / Like
    people talk about what the gov't can do to lower prices

    bringing Iraq online and stablizing the US dollar are the only two real short term moves to make.

    Everything else is just window dressing.

  16. #16
    Hall Of Fame
    Join Date
    Jan 2006
    Location
    Long Island & Section 337
    Posts
    4,859
    Post Thanks / Like
    [QUOTE=villain_the_foe;2591318]Is there still even such a thing as a socially responsible fund? [/QUOTE]


    [url]http://www.calvertgroup.com/sri.html[/url]

  17. #17
    Hall Of Fame
    Join Date
    Jan 2006
    Location
    Not bababooey and I resent the implication
    Posts
    21,029
    Post Thanks / Like
    Wait, Iraq was about oil and money? I'd have never thunk it..

    ftr, I've always thought it was about oil and honestly have grown to be ok with the war when thinking about it in this way.

    I hope we bring Iraq online, let our companies make money and let our economy benefit. Iraqi's benefit as well with all the money coming into the country..

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Follow Us