I said the wealth generated from the vast oil reserves would be distributed amongst foreign oil companies (read US oil companies) and the Iraqis - I never said we would take it all.
We're not taking anything, if the Iraqi Government did not feel this was in their best interests then why would they agree to it?
If this kind of agreement is so good then why does no other country with vast oil reserves operate in such a manner. Indeed, why then do all the major oil producers have STATE run oil industries.
They didn't at first, first they had agreements just like this and then when the contracts ran out the state took over. And BTW the economy of Iran was far better off under such agreements than when the state took over.
One should remember that Iran used to have an agreement such as the above but when they decided to terminate it the foreign investers didn't really appreciate it!!
Yes and then they nationalized their industry which is why they have not one refinery and are making far less than they would have had they followed the contracts with the British. Mossadegh nearly destroyed the Iranian economy, the Iranian economy never did so good as it did under the Shah, and look at the Iranian economy now, their oil is vastly underdeveloped and they don't even have a single refinery all they have is crude. The Iraqi's have entered into this agreement because they stand to profit far more by using the foreign refinery capacity rather than simply dumping crude on the market.
Its clear such agreements are not in the best interests of the Iraqi people.
This is just proof that you don't understand the great benefits of open markets and privatized vs. state ran industry.
Nope, the oil companies provide a service i.e drilling the oil out of the ground. How much they should get paid should depend on how much it costs to get the stuff up, not how much the oil then raises for Iraq.
And in return for their service they are getting a % of the oil profits what is the problem with that?
Iraq does not need foreign companies to take a share of their vast oil revenues,
Then let them pump and refine their own oil. Oh that's right they can't.
what they need are companies to provide services to enable them to make the most from their natural resources.
They are providing a service and in return they get a % of the profit, tell me how exactly is that not equatable?
Your argument here is completely bogus.
No that would be yours comrade, apparently you expect foreign companies to do all the work and reap none of the reward.
If I have a product I wish to sell but I need someone to develop a computer system for me and to also build up retail contacts I pay them a fee...I don't give i.e Microsoft a huge chunk of my profits for the next 20 years for building me a computer system.
lol, building and mantaining oil refineries, and oil wells, isn't exactly the same thing as building a computer system. The Iraqi's stand to gain far more profit from refined oil than they would from unrefined crude.
If you support open markets then the Iraqi's should be free to talk to any foreign oil investors they wish, most of whom could get their oil system back up and running for a FEE, and not billions of pounds of profit.
Then let them do that, apparently the Iraqi government (excuse me Democratically elected Iraqi government) feels that this is in their best interests.
The article also said these contract with the foreign oil companies can't be challenged in the Iraqi court system....I wonder why that might be :roll:
You might want to ask the Iraqi Parliament.
