Iraq Invites Big Oil To Bump Up Production

Long-Awaited Opening Of 6 Key Fields To Foreign Investment Is "Good News" For Oil Markets

(CBS/AP)  The Iraqi government says it has opened six oil fields for bidding from international firms to boost production.

Oil Minister Hussain al-Shahristani says the 35 oil companies that qualified for bidding include several majors from the West, such as Shell, BP, Exxon Mobil and Total.

He says the oil fields are: Rumeila, Zubair, Qurna West, Maysan, Kirkuk and Bay Hassan.

All the fields are already producing oil, but al-Shahristani said Monday the new contracts would raise Iraq's production by 1.5 million barrels per day.

The deadline for the bids is the end of March 2009, and preliminary contracts will be signed next June.

Al-Shahristani says Iraq will also open natural gas fields of Akkaz and Mansouriyah for bidding. He gave no timeframe for that.

As for the implications of Iraq's announcements on the oil markets, "just announcing it is good news," said Leo Drollas, the senior oil analyst and forecaster at the Center for Global Energy Studies, who added that the move by Iraqi officials had been long-anticipated.

"The announcement would, on its own, without anything else, bring the prices down, the futures prices in particular, because it's a positive event. It will put more oil onto the market," Drollas told CBSNews.com, "and more oil is desperately needed."

However, those lower prices for crude on global markets will not likely trickle down to the consumer anytime very soon, he said. "That'll take time, that's affected by real barrels," not futures prices.

And the real barrels - the 1.5 million real barrels of new crude Iraq hopes to get onto the market with this investment invitation - "it won't happen overnight," according to Drollas, who said he'd be surprised to see production increase by that amount within a year.

"The devil will be in the details" of the contracts with foreign investors, he said, as big Western companies will likely be reluctant to sign on solely as support contractors - wanting instead to produce oil from the fields under their own auspices and for their own profits.

But, said Drollas, there is room for that expansion in the six fields listed by the Iraqis, "especially the Qurna West field, which is a field with enormous potential but which has been producing at a low level. That alone could change things.

"Iraq has been such a disappointing story, to put it mildly, that any news of this kind is wonderful," said the London-based analyst.

Meanwhile, oil prices set a new trading record early Monday, with light, sweet crude trading above $143 per barrel for the first time before pulling back and trading up $2.11 at $142.32 in pre-market electronic trading on the New York Mercantile Exchange.

Iraq's announcement came as consumers howl over ever-increasing fuel prices and the United States pushes Saudi Arabia to produce more crude - and a desolate patch of sand 100 miles west of the Saudi capital of Riyadh becomes one of the most important places in the world economy.

Saudi Arabia's state-owned oil company, Aramco, is spending $10 billion to build the infrastructure to pump 1.2 million barrels of oil per day by next June from the Khurais oil field and its two smaller neighbors. That alone would be more than the total individual production of OPEC members Qatar, Indonesia and Ecuador. (Read more on the Khurais oil field's potential.)

The project forms the centerpiece of the Saudi plan to increase the total amount of oil it can produce to 12.5 million barrels per day by the end of 2009 - up from a little more than 11 million barrels per day now.

Drollas said the Iraqi announcement was, in many ways, more significant than the Saudi's announcement, saying Saudi Arabia had made, "more of a PR exercise" than an actual increase in production. He said their recently announced increase was largely just a move to reinstate production that had been reduced in previous years.

Iraqi oil fields generally produce crude that is considered fairly attractive to investors - easier and cheaper to refine into useable gas than the crude pumped from Saudi Arabia, but not quite as desirable as the sweet, light crude produced in Nigeria, according to Drollas.

[reptilian96]

FOX NEWS discovered the presence of a massive spy ring inside the United States run by the government of Israel. This seems a harsh gratitude from a nation which obtains 10% of its annual budget from the American taxpayer, $3+ billion a year. Over the years, American taxpayers have been required to send Israel more than four times what the US spent to go to the moon.

[samsel3]

Reuters UK December 30, 2007 Reports: "Bin Laden says U.S. seeks to exploit Iraqi Oil". OBL states: "America seeks, alongside it''''s agents in the region, to create an allied government...that would accept in advance the presence of major U.S. bases in Iraq and give the Americans all they wish of Iraqi Oil. The true intent for the Iraq invasion was to gain control of world oil markets for BIG OIL. US oil interests and British petroleum were tired of Saddam flooding the market with cheaper priced oil and then charging US oil companies more for oil then Russia, France, Germany, China and Korea. The administration is not interested in what you have to pay at the pump. The bottom line is profit for BIG OIL, which is the reason BIG OIL put up 150 million dollars for the election campaign of G.W. Bush.

[samsel3]

The Times of India August 2007 reported : " Iran, Iraq signed an agreement to build pipelines for the transfer of Iraqi crude oil and oil products." Under the deal crude will be refined and sent back to Iraq. Bush opposes this agreement and wants the Iraqi Parliment to accept and sign a U.S. designed oil law that would result in huge profits for BIG OIL. Iraqi oil workers and 63% of Iraqis polled are opposed to the Bush law and prefer a hands off Iraq oil policy.

[samsel3]

Iraq''s oil infrastructure was rebuilt when Cheney controlled Haliburton. Halliburton/Iraq deal was done through the French because it was illegal for US companies to deal with Iraq, except for the oil for food program which US oil companies participated in. Saddam was charging US interests more for oil then other countries and cutting off supplies at times so they took him out.

Taking out Saddam helped BIG OIL drive the prices up. A few months before the invasion, gasoline was under a dollar the lowest since the seventies oil embargo era.
Saddam actually lowered the world price of oil by selling it cheaper to Russia, China, France, Germany and South Korea before the invasion. He created an advantage against US & British oil by charging them more for oil than these countries increasing competition. US oil companies then got subsidies from Congress.

[reptilian96]

BRIT HUME, HOST: It has been more than 16 years since a civilian working for the Navy was charged with passing secrets to Israel. Jonathan Pollard pled guilty to conspiracy to commit espionage and is serving a life sentence. At first, Israeli leaders claimed Pollard was part of a rogue operation, but later took responsibility for his work.



Now Fox News has learned some U.S. investigators believe that there are Israelis again very much engaged in spying in and on the U.S., who may have known things they didn''t tell us before September 11. Fox News correspondent Carl Cameron has details in the first of a four-part series

[reptilian96]

BRIT HUME, HOST: It has been more than 16 years since a civilian working for the Navy was charged with passing secrets to Israel. Jonathan Pollard pled guilty to conspiracy to commit espionage and is serving a life sentence. At first, Israeli leaders claimed Pollard was part of a rogue operation, but later took responsibility for his work.



Now Fox News has learned some U.S. investigators believe that there are Israelis again very much engaged in spying in and on the U.S., who may have known things they didn''t tell us before September 11. Fox News correspondent Carl Cameron has details in the first of a four-part series

[red164]

Iraq Invites Big Oil To Bump Up Production

Now A word from this Sponsored headline RICH CHENEY

[mr2258]

The Iraqi government will open six oil fields for bids.Should raise production 1.5 million barrels per day.This is real news.Thank You President Bush.This would not be posible with democrat president.Just say NO to Obama......

[terrorislamj]

Posted by neoconRcrazy at 04:27 AM : Jul 01, 2008

and HUSSEIN is wacko who needs an attitude change - many, would be happy to give it to him.

[neoconrcrazy]

HUSSEIN IS A RACIST WHICH DIVIDES US RATHER THAN UNITES US,,,

Posted by terrorislamj


and terror-salami is wacko who needs an attitude change - many, would be happy to give it to him.

[terrorislamj]

HUSSEIN BELONGED TO A CHURCH THAT DIVIDES US RATHER THAN UNITE US,,,

HUSSEIN STAFFS HIS CAMPAIGN WITM MEMBERS OF THE NEW BLACK PANTHER PARTY THAT DIVIDES US RATHER THAN UNITES US,,,

HUSSEIN STAFFS HIS CAMPAIGN WITM MEMBERS OF THE NATION OF TERRORISLAM THAT DIVIDES US RATHER THAN UNITES US,,,

HUSSEIN IS A RACIST WHICH DIVIDES US RATHER THAN UNITES US,,,

[neoconrcrazy]

Here is how wars are started, without your knowing about it;

"Introduced less than a month ago, Resolution 362, also known as the Iran War Resolution, could be passed by the House as early as next week.

The bill is the chief legislative priority of AIPAC. On its Web site, AIPAC endorses the resolutions as a way to Stop Irans Nuclear Program" and tells readers to lobby Congress to pass the bill. In the Senate, a sister resolution, Resolution 580, has gained co-sponsors with similar speed. The Senate measure was introduced by Indiana Democrat Evan Bayh on June 2. It has since gained 19 co-sponsors.

The bills key section "demands that the president initiate an international effort to immediately and dramatically increase the economic, political, and diplomatic pressure on Iran to verifiably suspend its nuclear enrichment activities by, inter alia, prohibiting the export to Iran of all refined petroleum products; imposing stringent inspection requirements on all persons, vehicles, ships, planes, trains, and cargo entering or departing Iran; and prohibiting the international movement of all Iranian officials not involved in negotiating the suspension of Iran''s nuclear program."

"Imposing stringent inspection requirements on all persons, vehicles, ships, planes, trains, and cargo entering or departing Iran" can be read to mean that the president should initiate a naval blockade of Iran. A unilateral naval blockade without UN sanction is an act of war."

[singingrick]

Now the real reason Bush invaded Iraq is revealed.

[tawpdawg11]

To show some REAL patriotism one of these two candidates should introduce legislation to close the ENRON loophole and STOP the gambling on the future price of oil.

It doesn''''t matter if it passes or not.......whichever one can lay claim to bringing the bill to work will win easily in November.

These "SPECULATORS" are gambling away the American way of life.

My check and my vote are waiting to see which one has the nutz to get it done.

[randynason]

Let''s see if I have this one right: the Iraqi puppet-officials that the U.S. government has installed have given permission for U.S. oil corporations to move in and start pumping. Gee- when the corporate news says it, it sounds so much more... democratic.

[barocalto]

SIEG HEIL MEIN FUHRER!! Thatta boy!!

Posted by MCVet at 09:04 PM
.................
MCVet you got anything new or are you just trying to shout everyone down like Hitler''s boys did in Munich. I figure you got to be some kind of closet fan of the fuhrer and in fact I notice you even write his name in all caps to show respect. It''s OK you can come out of the closet you''ll feel free and most of us will more then understand.

[barocalto]

Looks like the Iraqi government is doing more to being down the price of gas then the do nothing democratic congress. In fact I''m of the opinion that the Democratic are doing thing on purpose to rise the price of gas. Look at what''s happen since the Democrats have taken control of the congress. Gas is way up, house prices are way down, thank you move on for all your help.

[downtowner97]

Shale oil is very expensive to extract. You have to heat the shale to get liquid oil out of it, and you have to burn fossil fuels to create the heat. Your car runs on gasoline extracted from light, sweet crude. It''s called that because it pumps easily, flows through pipes well, and contains a large percentage of lighter products like gasoline, jet fuel and diesel, and not as much tar as heavier oils. There are many shale deposits in the US that are and always have been fair game, but they just aren''t profitable.

[armydog2]

Don''t tell me bush lied and this war was all about OIL?

[mcvet]

Where did all the whine-ocrats go??

They were so adamant before they knew the facts!

Posted by captalistpig at 07:50 PM : Jun 30, 2008
+ report abus

You mean the PEOPLE who tried to tell us that the pathetic piece of Human Trash a few still call a President was LYING to us for the OIL?? ROFLMAO Say have you gone to the site with all those LIES on it. EVERY American should visit that site.. 935 times that traitor Bush LIED to the American People in 2 years!! Over 4 THOUSAND of our best dead and for NOTHING BUT LIES!! Aren''t you proud? Let''s let the Fuhrer know you bootlickers will follow him to the bunker. Ready?? Sing it out... Old Shooter don''t hear so well since he shot his pal!! SIEG HEIL BUSH!! On come on, you can do better than that!! SIEG HEIL MEIN FUHRER!! Thatta boy!!