The Belgravia Dispatch: ISG Excerpts (V)

December 07, 2006

ISG Excerpts (V)

Oil (short-term):

Recommendation 62: As soon as possible, the U.S. government should provide technical assistance to the Iraqi government to prepare a draft oil law that defines the rights of regional and local governments and creates a fiscal and legal framework for investment. Legal clarity is essential to attract investment.
The U.S. government should encourage the Iraqi government to accelerate contracting for the comprehensive well work-overs in the southern fields needed to increase production, but the United States should no longer fund such infrastructure projects.

The U.S. military should work with the Iraqi military and with private security forces to protect oil infrastructure and contractors. Protective measures could include a program to improve pipeline security by paying local tribes solely on the basis of throughput (rather than fixed amounts).

Metering should be implemented at both ends of the supply line. This step would immediately improve accountability in the oil sector. [my emphasis]

pp. 84-85

Posted by Gregory at December 7, 2006 04:14 AM

Comments

It happens I'm currently reading a book called Understanding Iraq, by William R. Polk.

http://www.amazon.com/Understanding-Iraq-History-American-Occupation/dp/0060764686

Some pertinent excerpts:

'Since the inception of the state, Iraqis of all walks of life firmly believed in what might be called the James Bond school of politics. Behind every pronouncement, every alliance, every action, they believed, lurked ruthless, sinister, brilliant foreign agents.'

'While there was much truth behind what outsiders usually dismissed as paranoia, these beliefs also revealed the basis of the insecurity of the Iraqis. They realized their country was small and weak but, possessing vast riches of oil, was a target for foreign domination. Iraqis knew that at least some of their earlier leaders had served as agents for foreign powers and supposed that current leaders were willing to do so.'

'Nationalization of the IPC [Iraq Petroleum Company, a consortium of five western oil companies, two of them American and one British] was perhaps the most popular move Saddam ever made. It is difficult for foreigners, particularly modern Americans, to understand how bitter the Iraqis were about foreign domination. . . . The generation that grew to adulthood after the Second World War regarded oil, Iraq's major international asset, as the symbol and reason for British imperialism.'

What the U.S. should do about Iraq's oil is nothing. Let the Iraqis handle it. Of course they will put crooks in charge, but crooks will be in charge anyway. And if they just plain screw it up, tough. Meddling with Iraq's oil may be good for American oil companies, but it's not good for America.

Posted by: David Tomlin at December 7, 2006 01:53 PM | Permalink to this comment

Rather a pity, the CPA had it partially right when it wanted Iraq's oil industry privatized. Certainly this is the only way to break out of a statist patronage society. Sadly this would only work if it was clear that the industry would be privatized into Iraqi hands, whereas the opposite was only too clear.

Posted by: Antiquated Tory at December 8, 2006 05:43 PM | Permalink to this comment

	« ISG Excerpts (IV) \| Main \| ISG Excerpts (VI) » December 07, 2006 ISG Excerpts (V) Oil (short-term): Recommendation 62: As soon as possible, the U.S. government should provide technical assistance to the Iraqi government to prepare a draft oil law that defines the rights of regional and local governments and creates a fiscal and legal framework for investment. Legal clarity is essential to attract investment. The U.S. government should encourage the Iraqi government to accelerate contracting for the comprehensive well work-overs in the southern fields needed to increase production, but the United States should no longer fund such infrastructure projects. The U.S. military should work with the Iraqi military and with private security forces to protect oil infrastructure and contractors. Protective measures could include a program to improve pipeline security by paying local tribes solely on the basis of throughput (rather than fixed amounts). Metering should be implemented at both ends of the supply line. This step would immediately improve accountability in the oil sector. [my emphasis] pp. 84-85 Posted by Gregory at December 7, 2006 04:14 AM Comments It happens I'm currently reading a book called Understanding Iraq, by William R. Polk. http://www.amazon.com/Understanding-Iraq-History-American-Occupation/dp/0060764686 Some pertinent excerpts: 'Since the inception of the state, Iraqis of all walks of life firmly believed in what might be called the James Bond school of politics. Behind every pronouncement, every alliance, every action, they believed, lurked ruthless, sinister, brilliant foreign agents.' 'While there was much truth behind what outsiders usually dismissed as paranoia, these beliefs also revealed the basis of the insecurity of the Iraqis. They realized their country was small and weak but, possessing vast riches of oil, was a target for foreign domination. Iraqis knew that at least some of their earlier leaders had served as agents for foreign powers and supposed that current leaders were willing to do so.' 'Nationalization of the IPC [Iraq Petroleum Company, a consortium of five western oil companies, two of them American and one British] was perhaps the most popular move Saddam ever made. It is difficult for foreigners, particularly modern Americans, to understand how bitter the Iraqis were about foreign domination. . . . The generation that grew to adulthood after the Second World War regarded oil, Iraq's major international asset, as the symbol and reason for British imperialism.' What the U.S. should do about Iraq's oil is nothing. Let the Iraqis handle it. Of course they will put crooks in charge, but crooks will be in charge anyway. And if they just plain screw it up, tough. Meddling with Iraq's oil may be good for American oil companies, but it's not good for America. Posted by: David Tomlin at December 7, 2006 01:53 PM \| Permalink to this comment Rather a pity, the CPA had it partially right when it wanted Iraq's oil industry privatized. Certainly this is the only way to break out of a statist patronage society. Sadly this would only work if it was clear that the industry would be privatized into Iraqi hands, whereas the opposite was only too clear. Posted by: Antiquated Tory at December 8, 2006 05:43 PM \| Permalink to this comment		Reviews of Belgravia Dispatch "Awake" --New York Times "Always-Worth Reading" --Andrew Sullivan Recent Entries A Brief (and Belated) Word on Chas Freeman What Would Real--Rather Than Rhetorical--Change in U.S. Foreign Policy Look Like? Of War, and Tent Hospitals The Obama Imperative Some Addt'l Thoughts Re: Georgia McCain: Let's Compound the Blunder! Georgia On My Mind Should We De-Emphasize The Terror Threat in U.S. Foreign Policy? 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