Text 18079, 62 rader
Skriven 2005-12-07 06:14:24 av SHANNON TALLEY (1:275/311)
     Kommentar till en text av Paul Sanders
Ärende: Re: Collateral Damage
=============================
Hi Paul,

> pre 1990 (you know, before the santions against Iraq) Iraq was a
> reasonable place (economicially)
> 2005 it is a wasteland.

But the "People" in Iraq, as you previously stated, didn't get any of the 
moneys from the oil.

As for the rest of the data, the website is a good one, owned by a large 
multimedia company that generated the majority of their funds by creating 
DirectNic (domain provider) but it's very "left".

After reading it, the article give one the impression that business are 
stealing Iraqi oil fields.  However, it's what it doesn't say that concerns 
me.  It doesn't say that Iraq isn't going to receive profits.  It doesn't 
state that once Iraq has 100% control of their oil ministry they can't 
assume control of their own fields.  It doesn't give or provide the budget 
or economic ties between these companies and the Iraqi oil ministry.  It is 
"not" an objective article -- i.e. giving all sides of the situation.

Most importantly it doesn't state "why" this is taking place, it just makes 
one assume everything is happening for non-honorable reasons.

HERE is the "Why": Iraq is a "long" way from being able to self-sustain 
these oil facilities.  These companies have made economic agreements with 
the country to come in, get their oil fields into full production, and take 
a percentage of the profit.  Without these companies getting the oil fields 
operating again, Iraq wouldn't have any positive income flow (Some money 
coming in is better than NO money coming in).  After the contract is up, 
Iraq can and will do what Iraq wants to do.  They can renew the contracts or 
go with less expensive companies -- who knows -- that's quite a way into the 
future.  In the meantime, they will be able to use the money to rebuild a 
social & governmental structure, get back on their feet again, and become 
fiscally solvent.

Imagine someone just gave you 100 oil fields and only 2 or 3 were working --  
and you had NO money and NO expertise to get these things in production.  A 
company executive walks in and says, "I'll get these things up and working 
and do everything necessary to fix them.  I need xxx percentage in the 
profit generated from these oil fields -- because I'm a businessman and I'm 
here to make money.  You'll get the rest....  Once my contract is up, you 
can renew or go to one of my competitors".  What would you (honestly) say?

I hope that kind of explains things a little :)

Cheers!
Shannon



> ST>Second, where did you get this "20%" figure you are quoting?  Would you 
> post
> Here is one source:
>  Notes
> 1. The Iraqi government would be left with control of only
> the 17 fields that are already in production, out of around
> 80 known fields.
> 80 - 80% = 16, close enough to 20%

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