Saturday, May 17, 2003

OK I’m beginning to see what Chimpco’s plan for economic recovery is going to be. FLOOD THE WORLD WITH CHEAP OIL!!! Thanks to The Whiskey Bar for the link and the sock-puppet show:

The U.S. executive selected by the Pentagon to advise Iraq's Ministry of Oil suggested today that the country might best be served by exporting as much oil as it can and disregarding quotas set by the Organization of Petroleum Exporting Countries. His comments offered the strongest indication to date that the future Iraqi government may break ranks with the international petroleum cartel.

Iraq's resumption of oil exports under a new government would expose OPEC to considerable uncertainty. Iraq has the world's second-largest proven oil reserves. Flows of Iraqi oil to the world market unconstrained by OPEC quotas could further erode the cartel's already limited ability to set prices and might even trigger a price war, eating into the profits of its member countries. Such an outcome would surely delight the Bush administration as well as buyers of gasoline in the United States, the world's largest oil consumer. With that in mind, commentators -- particularly in Europe -- have contended that the real purpose of Bush's war in Iraq was to put in place a government that would break OPEC. Such an outcome would dismay the world's largest oil producer, Saudi Arabia, Kuwait and Iran.

Not only would this plan give the world cheap oil, it would screw the French, Russians and OPEC at the same time! YAY!!!

Hussein's government had an official policy of steering contracts for drilling services, joint production and machinery to companies based in France, Russia and China, whose governments tended to be more supportive of Iraq in the United Nations Security Council. Though Carroll did not single out any potentially imperiled contracts, he asserted that the old system of preferential treatment ended with the demise of Hussein. "There will have to be an evaluation by the ministry of those contracts and a determination of whether they were made in the best interests of the Iraqi people," Carroll said. "Certainly, where contracts are, shall we say, excessively beneficial to one party, and that party is not the Iraqi people, and there is a legal basis for not going forward, then I would expect that the ministry would want to have another look."

Well of course they would have another look. We’ll be pulling all the strings. And who cares that the cheaper prices for the oil would mean less hard capital for the Iraqi’s to rebuild their country. We’ll be paying less than a dollar a gallon for gas in our SUVs, which means we’ll all have more money in our pockets that we can rush out and spend on durable goods and food and American flags!!

Yeah, this wasn’t a war for oil. Not by a long shot.