We are paying twice for this oil—Why?

Exposed the Myth of the War on Terror Since 2003


Iraq has oil reserves of an estimated 115 billion barrels and it also has an estimated 112 trillion cubic feet of natural gas reserves, according to the Oil Ministry.  Iraq's political future is very much in flux, but oil remains the central feature of the political landscape

01 August 2008

I wrote this missive in response to the present push by the current criminal administration to drill off the US coast.  I sent it to CNN in the midst of all the hoopla over off shore oil drilling.   Never heard from CNN.    It is funny that 70% of Americans would like to see GW Bush gone, but every time he asks our Representatives for something, he gets it.  He tells us gasoline and diesel prices would come down if corporate oil would be allowed to drill for more off the coast of the US.  Given the fact there is such a little amount of crude to be had, it seems hardly worth the effort and expense to set up costly ocean going drilling rigs.  GW Bush conned America into attacking Iraq with fraudulent statements concerning that countries alleged WMD program.  Most Americans know the truth now............So why do 69% (according to a CNN pole) believe Bush when he says drilling off shore is the solution to the high energy prices.  I spent quite a few hours of research on this little missive........see if it makes sense to you.  just looking at facts any of you can "Google" for yourself.   If you want to comment, feel free to email oilwars.com 


In the next month or so, the Iraqi Oil Ministry under the "guidance" of the US State Department is set to sign one or two year no bid contracts with U.S.-based Exxon Mobil and Chevron, Royal Dutch Shell, France's Total and the British oil company BP.Russia, China and India were not included as of this date.  (28 August 2008 - China and Iraq set to sign $3 billion dollar deal to develop Ahdab oil field)

Just a couple of facts 

1.  Iraq is estimated to have 115 billion barrels of oil and 112 trillion cu ft of natural gas. Depending on what internet site you choose, this is the second largest oil and gas reserves in the world.  It is very easy to drill for oil in Iraq, compared with off shore oil drilling. 

2.  US Taxpayers have already made a nearly $1 trillion dollar down payment on Iraq's oil not to mention the thousands of beings killed and injured as the US conquered the nation. Some estimates place the final cost of this "war" at $3 trillion dollars.  At today's prices, the oil and gas in Iraq is worth over $19 trillion.  Big oil will reap these profits - our tax dollars secured the oil fields and will guard them for US, French and British oil firms. The USA owns Iraq, ask any Iraqi.  The former head of the Federal Reserve, Alan Greenspan said:  "I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil." 

3. What is driving the cost of oil? It certainly isn't a shortage.  In the USA demand for gasoline, according to IHS.com probably peaked in 2007.  The high cost of fuel and the increased demand for fuel-efficient vehicles is responsible for the drop of nearly 2%.  Question:  Anyone seen any lines at service stations?  Are filling stations still being built all across the USA?  Has road construction come to a halt in the US?  The answer is no. 

4. Oil has become a form of investment and a hedge against rising inflation. People plough their savings into oil and speculators drive the markets. As Saudi Arabia correctly observes, the price of oil is no longer determined merely by supply and demand.   Check the prices of precious metals, gold and silver.  Silver has more than quadrupled in price ($16.85 oz) and gold nearly tripled ($895.30 oz) in the last three years. No one is really complaining about these price increases since most of us can do without these precious metals and many durable goods commodities have decreased in price due to the cheap cost of labor in China and elsewhere.

5.  This data is 8 years old (hard to find info) but according to the US Energy Information Administration, the US has 21 billion barrels of oil reserves, on and off shore.  Their estimates say this could last the USA 3 years.  Iraq, remember, has 115 billion barrels of oil that, for all practical purposes, is ours for the taking.  America will continue to borrow money on its "full faith and credit" and supply the military might to secure these oil riches. 

6.  Most Americans don't know Canada is by far the biggest supplier of crude to the lower 48.  The US imported nearly one fourth of it's nearly 5 billion barrels of crude from Canada.  Canada has vast oil reserves located in expensive to extract oil sands and shale.  The increased price of oil now will make it profitable to extract the oil from these deposits.  The USA also has vast oil shale deposits as well.  Now get this; there is an estimated 2.8 to 3.3 trillion barrels of shale oil reserves in the world.  That is trillion, with a "T." 

So what is all the fuss about “off shore drilling? "Americans apparently don’t mind getting most of their durable goods produced in other countries as long as they are cheap. A visit to the local big box department store will reveal, there is not much Made in the USA any longer. So why the hue and cry to “get off of foreign oil. "Who knows, but it is basically nonsense and fabrications by our government so they appear to be doing something about a crisis which doesn't exist. I believe as long as there is oil in the earth, it will continue to be used in much the same way it is today, until it is gone. By then “Corporate America” will come to the rescue and supply the world with an alternative fuel vehicle. They will sell the vehicle and supply the fuel, what ever it is. Unfortunately given the reserve deposits of oil in Iraq, sand and shale, this won't occur anytime soon. 



American Lives for Oil—Is it Worth It?

Iraqi Children Killed  for Oil—Is it Worth It?

Text Box: Finally, A Reason to Die in 
  14 June 2010