tag:blogger.com,1999:blog-1953410733493889728.post3123026755916699779..comments2024-02-29T12:38:32.191-08:00Comments on MUSINGS ON IRAQ: Iraq’s Oil Infrastructure Expansion Plans May Run Into A HitchJoel Winghttp://www.blogger.com/profile/09611810110771744360noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1953410733493889728.post-12172607716607196612010-10-16T11:17:02.593-07:002010-10-16T11:17:02.593-07:00Maury,
You will get no argument from me about pri...Maury,<br /><br />You will get no argument from me about privatization in Iraq. Its state-run system is a wreck. I'm just trying to say that if Iraq wants to expand it's oil industry the only ones with the money, know how, and equipment are foreign companies. There are no Iraqi entities right now up to the task. <br /><br />Not only that but the political situation in Iraq will not allow for the privatization of the oil sector. Pubic opinion will just not go for that at this time.Joel Winghttps://www.blogger.com/profile/09611810110771744360noreply@blogger.comtag:blogger.com,1999:blog-1953410733493889728.post-65205086565083042372010-10-16T04:16:07.346-07:002010-10-16T04:16:07.346-07:00It's not just Iraq Joel. All the Middle East c...It's not just Iraq Joel. All the Middle East countries are control freaks when it comes to oil. US reserves are piddling when compared to Iran, Iraq, or Venezuela (another control freak). But, we produce three times as much as any of the three. Only Saudi Arabia and Russia produce more oil per day than the US, and not that much more. <br /><br />Can you imagine where the US would be today if we had run our economy like Iraq does....from the top down? We'd still be a third world nation, taking bids from the Chinese to develop our oil fields. <br /><br />For 50 years, Texas was OPEC to the world. There are 1,000,000 wells in Texas, and barely 200 in Iraq. Government control doesn't work. Never did, never will.Mauryhttps://www.blogger.com/profile/08155413912838430846noreply@blogger.comtag:blogger.com,1999:blog-1953410733493889728.post-3926774513624413432010-10-15T22:07:42.642-07:002010-10-15T22:07:42.642-07:00Maury,
I don't think it's got anything to...Maury,<br /><br />I don't think it's got anything to do with Iraqi ambitions or the government not trusting the people. When the Oil Ministry was developing its plan to develop its fields there was a big push to just have the Oil Ministry do it without going to foreign companies. No one thought that was possible. The Oil Ministry lacked the money and know how to expand production. The Oil Ministry is barley holding things together as is right now. <br /><br />The oil business requires billions of dollars, huge amounts of equipment, technical knowledge, etc. For example, Russia's Lukoil announced recently that they plan on investing $4.5 bil into an oil field they won in the 2009 auctions in the next 4-5 years. There's no way an Iraqi start up would be able to get that kind of money, and even the Oil Ministry if it was privatized would struggle to come up with that amount as well.<br /><br />You also have to remember that Iraq is desperate for money right now, as fast as possible to rebuild, so they couldn't wait for any private Iraqi companies to develop up the funds and know how to expand production.Joel Winghttps://www.blogger.com/profile/09611810110771744360noreply@blogger.comtag:blogger.com,1999:blog-1953410733493889728.post-51639864835510647972010-10-15T16:14:50.608-07:002010-10-15T16:14:50.608-07:00Check out the movie There Will Be Blood sometime J...Check out the movie There Will Be Blood sometime Joel. It's about the early oil days. Before drilling rigs had even been invented. They were actually pulling oil up from the ground in buckets. People can be pretty darn creative when the incentive is there. <br /><br />I don't think the Iraqi government trusts its own people. Maybe they think people won't pay their fair share of taxes or something. They could easily craft laws that encouraged private production, while discouraging foreign participation. If the Iraqi government really wants to boost production, the best thing they can do is get out of the business.Mauryhttps://www.blogger.com/profile/08155413912838430846noreply@blogger.comtag:blogger.com,1999:blog-1953410733493889728.post-64821324203077274712010-10-15T08:27:02.590-07:002010-10-15T08:27:02.590-07:00I just don't think that's possible. There ...I just don't think that's possible. There are no private Iraqi oil companies and if they called for them to be formed they would lack the know how, equipment, and money to be successful. If they privatized the state run companies like the South Oil Company, they to lack knowledge of modern techniques because they've been cut off for 10 years due to sanctions and wars, have problems with qualified staff, plus there's plenty of political appointees and corrupt officials that would be hard to get rid of without consequences.Joel Winghttps://www.blogger.com/profile/09611810110771744360noreply@blogger.comtag:blogger.com,1999:blog-1953410733493889728.post-56454311479340355582010-10-15T04:29:55.262-07:002010-10-15T04:29:55.262-07:00Who said anything about foreign oil companies Joel...Who said anything about foreign oil companies Joel? I could drill a wildcat well today if I had the money and inclination to do it. And when I needed to get the oil to market, I'd reach for the yellow pages, not some government official. <br /><br />Iraqi's are creative and industrious people. They don't need foreignors to develop their oil fields. They just need the opportunity to do it themselves. The government won't give them that.Mauryhttps://www.blogger.com/profile/08155413912838430846noreply@blogger.comtag:blogger.com,1999:blog-1953410733493889728.post-75482611668158225142010-10-14T18:27:53.152-07:002010-10-14T18:27:53.152-07:00Maury,
From what I've read Iraqis are still v...Maury,<br /><br />From what I've read Iraqis are still very nationalistic about their oil industry and weary of foreign oil companies. It took a lot for the Oil Ministry to even go through with its 2 rounds of oil auctions in 2009. Members of parliament and unions were opposed, etc. One parliamentarian even sued the Ministry over it. For those reasons the industry is probably going to stay under government control for the foreseeable future.Joel Winghttps://www.blogger.com/profile/09611810110771744360noreply@blogger.comtag:blogger.com,1999:blog-1953410733493889728.post-66425832173546663912010-10-14T17:52:09.123-07:002010-10-14T17:52:09.123-07:00Just one more reason the oil industry should have ...Just one more reason the oil industry should have been privatized. Private industry is very good at building infrastructure when there's a profit motive. I fail to understand why Iraq wants to run this industry. They could tax and regulate oil companies to their hearts content, and not have a care in the world. Instead, it's one thing after another with these guys.Mauryhttps://www.blogger.com/profile/08155413912838430846noreply@blogger.com