What Does Iraq's Oil Say About The Iraq War? (Re-post)

by Cody Lyon (LINK TO FULL TEXT)
EXCERPTThe Iraqi cabinet approved the hydrocarbon law on Feb. 26 and sent it on to parliament where it now sits. If fully approved, Iraq's oil reserves would be opened to investment from foreign multinational oil companies. The current legislation would also provide oil companies the option for long-term contracts of up to 30 years. The laws would set up Profit Sharing Agreements, or PSAs, where revenue is based on the profit after oil companies' deduct their production costs. Reportedly, the remaining profits would then be divided among the Iraqi provinces.

Critics charge that the law offers excessive and unfair profits to the oil companies. Others worry that since Iraq is now a country experiencing horrific turmoil, the time is not right to debate such important economic legislation.

Supporters of the oil law disagree. They say the regulatory, legal and tax structure the oil law sets up, will invite the necessary outside investment the country needs to jumpstart its economy. They see the law as an enabler of market-based economic infrastructure that will produce streams of revenue, helping restore stability and prosperity for the Iraqi people.
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