Iraq Oil Report

It appears that U.S. Sen. Joe Biden’s attempt at breaking the political deadlock in Baghdad with legislation calling for a weak central government in Iraq has done more for bringing politicians together than all recent U.S. efforts combined.

Of course, Iraqis (except for the Kurds) are united against his plan, as is the U.S. embassy in Baghdad, Ned Parker and Raheem Salman of the Los Angeles Times report.

Biden, however, says his amendment –- approved by 75 of 100 Senators — to the 2008 defense appropriations bill is being misunderstood. He said it doesn’t control Iraq’s future, only reinforces the 2005 constitution which calls for federalism to some extent.

His legislation calls on Iraq’s government to approve an oil revenue sharing law as one measure to ease tensions within political factions.

During a phone press conference today, I asked him to explain how the oil sector as a whole would operate under his weak-central government plan.

“The revenue law should be part of the oil law,” Biden said, and all of the oil decisions “will be a central decision.”

Iraq’s Oil

The first batch of discount Iraq oil has reached the Jordanian refinery.

International Energy Agency: Iraq and Angolan production growth to to be part of OPEC’s enlarged capacity.

Nasir al Ali reports in Asharq Alawsat on enjoying Ramadan in Iraq with little fuel and money.

Ewa Jasiewicz of the oil research group Platform, writes for The Independent on what she took from the Iraq oil officials and international oil company leaders who gathered earlier this month in Dubai.

Black gold turns grey as Western giants prepare to draw from the wells of Iraq:
The big oil multinationals thought the prize was theirs under new production-sharing agreements in the war-torn country. But the ‘Iraqi wealth for the Iraqi people’ movement is growing amid internecine conflicts and trade union resistance.

Iraq is open for business,” promised oil ministry officials. “Investment can reduce Iraq’s poverty and help bring peace,” came back the chorus from oil company chiefs.

Gal Luft, executive director of the Institute for the Analysis of Global Security, writes the Baltimore Sun ’War for Oil’ claim doesn’t fit the facts.

Society, Security and Politics

The war has made millions of Iraqis refugees. The U.N. reports some displaced Iraqis are now begging to make ends meet.
Implications for oil: Correct or not, oil is seen as a major motive for the war. With the quality of life so reduced by the war, including people forced to beg for money, how will the Iraqi citizenry react to anyone but Iraqis involved in the oil sector?

The Iraq Oil Report by UPI’s Hiba Dawood.

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