TresSugar

Western Oil Companies Back in Iraq With Unusual Contracts

LibertySugar — Thu, 19 Jun 2008 11:02:44 -0700

Thirty-six years after Saddam Hussein nationalized oil and kicked out Western companies, Iraq's Oil Ministry has awarded Exxon Mobil, Shell, Total, and BP contracts set to bring the oil giants back.

Despite the fact that high oil prices put these contracts in high demand, Iraq granted very unusual no-bid contracts, meaning the companies did not have to compete with their counterparts in China, Russia, and India. Today's New York Times explains:

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. 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.

The oil companies assure that they intend to help Iraq rebuild its neglected oil infrastructure. To see how, read more.

Private companies will bring new technology and expertise to Iraq, as well as new oil revenue to help rebuild other infrastructure. Interestingly, the contracts, designated as "service contracts" to be paid with oil, circumvented any legislative approval.

For a more in-depth explanation on this unusual, yet seemingly predictable development, check out the whole NY Times story. Would it have been better if Western oil companies came back to Iraq under less exceptional circumstances?

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Front Page: US Economy Shrinks Like It's 1982

CitizenSugar — Fri, 30 Jan 2009 07:30:40 -0800

The US economy shrank 3.8 percent last quarter, the most it has shrunk since 1982. - Bloomberg
President Obama will be rooting for the Pittsburgh Steelers to win the Super Bowl this Sunday. - CNN
Exxon Mobil's profits dropped 33 percent last quarter, thanks to lower demand for gas and cheaper oil prices. - New York Times

The US Senate passed the children's healthcare bill (SCHIP) today. Obama will likely sign the final version next week. - Washington Post
Police in Switzerland say they discovered a marijuana field using Google Earth. - AP

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Feeling Gassy? The Government Is Too.

CitizenSugar — Thu, 03 Apr 2008 06:00:40 -0700

It's no secret that gas is completely expensive. This week the news about it has been a gusher. Big Oil execs were called in front of Congress to explain the hit we're all taking at the pump. What else? Oh, the truckers went on strike showing us how high gas prices can also send commerce to a screeching halt, and we found out ethanol is not the wonder-fuel everyone hoped and could actually be making the food and environment problems worse. Awesome.

Surely all that is just coincidence right? The energy and environmental problems aren't that bad. Well, yesterday 18 states filed to take the Environmental Protection Agency to court saying that even though the EPA was faced with a Supreme Court ruling to regulate greenhouse gas emissions, including carbon dioxide from motor vehicles, they've done nothing. 18 states. Suing. The EPA. For not protecting the environment. Oh golly.

If you're curious to see what Big Oil had to say for themselves, read more.

Senior VP of Exxon Mobil (whose company last year raked in the largest profit in U.S. history at $40.6 billion) explained that his company needed the huge profits to pay for future oil development. Oh. Well as long as there's a good reason right?

Big Oil claims that their profit margins are comparable to other industries, and the execs went on to questions as to why that money is paying for oil development instead of focusing on renewable sources. Exxon Mobil said that they're giving some ($100 million) but until renewable sources become more economically competitive, the company will focus on its core oil business. Chevron allowed that the US would be getting 86 percent of its fuel for at least the next 25 years.

One solution offered? The execs said one way to ease prices was to grant access to off shore deposits. They are presently off limits due to some pesky negative environmental impact or some such. Representative Emanuel Cleaver, (D-MO) probably summed it up best when he told these executives, “Your approval rating is lower than ours, and that means you’re down low.”

Are we ready to start walking everywhere yet?

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Link Time

LibertySugar — Fri, 01 Feb 2008 14:01:52 -0800

Bush's Wikipedia entry a love letter from Karl Rove? - Beggars Can Be Choosers
Smug alert: leather-free SUV Hybrid spotted in San Francisco - SFist
Leo DiCaprio, Stevie Wonder, sexy-time mayors, etc, at last night's debate - Politico
Mentally retarded female bombers cause deadliest day since surge in Iraq - Huffington Post
Ann Coulter says if McCain wins, she will campaign for Hillary - Red State
Exxon-Mobil reports record profits, adding insult to injury - Daily Kos
Microsoft + Yahoo = bringing Google to its knees? - Pandagon
What the National Journal "liberal" ranking really means - Swampland

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