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According to the New York Times, it appears the biggest beneficiary of the post-Iraq War oil boom is China.

China Is Reaping Biggest Benefits of Iraq Oil Boom

The article states that China is already buying half of the oil output Iraq currently produces, and is looking to grab an even bigger share.  More importantly, the article states the following:

Notably, what the Chinese are not doing is complaining. Unlike the executives of Western oil giants like Exxon Mobil, the Chinese happily accept the strict terms of Iraq’s oil contracts, which yield only minimal profits. China is more interested in energy to fuel its economy than profits to enrich its oil giants.

Chinese companies do not have to answer to shareholders, pay dividends or even generate profits. They are tools of Beijing’s foreign policy of securing a supply of energy for its increasingly prosperous and energy hungry population. “We don’t have any problems with them,” said Abdul Mahdi al-Meedi, an Iraqi Oil Ministry official who handles contracts with foreign oil companies. “They are very cooperative. There’s a big difference, the Chinese companies are state companies, while Exxon or BP or Shell are different.”

So in essence, we went to Iraq to topple Saddam Hussein so China could benefit from all the oil that was underground there?   And on top of that, we're providing security for all that oil to go to China.  Way to go Bush administration! (sarcasm)

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Comment Preferences

  •  Very interesting. (2+ / 0-)
    Recommended by:
    gffish, PrahaPartizan

    So in the US and UK, capitalism controls, which means profits are paramount, even to the detriment of national intereste (you could even say the Big Oil companies are, in their own way, anti-American because of this focus on profits above all else).  The Chinese, however, are acting as a country--a state.  Maybe this signals the end of corporate dominance of commodyty-based foreign policy, and the resurgence of state-directed, state-controlled economic foreign policy, because again, we will be forced to compete with the Chinese.  This is not a bad thing, IMHO; it would whittle away, if not completely undercut, the threat that corporate power might actually overshadow governmental power.

    The road to Hell is paved with pragmatism.

    by TheOrchid on Mon Jun 03, 2013 at 07:26:39 AM PDT

    •  TheOrchid - Oil is already controlled (2+ / 0-)
      Recommended by:
      PrahaPartizan, nextstep

      by state-owned companies. The members of OPEC all control their oil through state owned companies which dwarf "Big Oil'. The oil companies owned by the public, like BP and Chevron, collectively control a small fraction of the proven oil reserves when compared to the collective ownership of the state owned companies. I do think in those areas where China can bid for oil rights the deals will be more favorable to the host country.  

      "let's talk about that"

      by VClib on Mon Jun 03, 2013 at 08:25:29 AM PDT

      [ Parent ]

  •  China may have bee helped (2+ / 0-)

    but by far the biggest beneficiary of the Iraq War was Dick Cheney and his Corporate Pirates featuring Halliburton et all.

  •  So what? And why are you surprised? (0+ / 0-)

    Last I saw, the Chinese never invaded Iraq on a lie.

    'If you want to be a hero, well just follow me.' - J. Lennon

    by Clive all hat no horse Rodeo on Mon Jun 03, 2013 at 07:51:12 AM PDT

  •  We probably didn't have that intention (0+ / 0-)

    but yes, that was one of the outcomes.

    Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

    by corvo on Mon Jun 03, 2013 at 07:56:58 AM PDT

    •  It was Cheney's idea, hatched during his (1+ / 0-)
      Recommended by:
      corvo

      top-secret "energy consultations" during the spring of 2001, to invade Iraq and establish a long-term puppet protectorate that would give US corporations a free hand in the Iraqi oilfields.

      That idea turned out to be idiotic. The heavy-handed US-dictated Provisional Authority in Iraq provoked a Sunni resistance. After Maliki's election his government decided not to renew the SOFA (Status of Forces Agreement) and made it clear he expected the Americans to leave. We got kicked out. It is to Obama's credit that he recognized and accepted this.

      China reaped the fruits of Iraqi oil, and it deserved to do so: it agreed to get Iraq's oil by paying for it rather than politically extorting it.

      •  All exactly right, except (0+ / 0-)

        that it's less to the current Administration's credit that it initially sought to persuade Iraq to relent on that part of SOFA.

        Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

        by corvo on Mon Jun 03, 2013 at 02:18:07 PM PDT

        [ Parent ]

  •  Oil's fungible... (2+ / 0-)
    Recommended by:
    gffish, PrahaPartizan

    So this doesn't bug me that much.
    What does bug me is that all the reconstruction work and building is NOT being done by American firms....Turkey is the main beneficiary (not blaming Turkey)....that is the real scandal.

    •  What would be wrong with having (2+ / 0-)
      Recommended by:
      LuvSet, Dogs are fuzzy

      the reconstruction work done by, you know, Iraqi firms?

      Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

      by corvo on Mon Jun 03, 2013 at 09:11:06 AM PDT

      [ Parent ]

      •  If they have the skills.... (0+ / 0-)

        Absolutely nothing.
        But if it is a foreign firm....why not, you know, American firms?

        •  ah, disaster capitalism at its finest. (1+ / 0-)
          Recommended by:
          high5

          "Oops, we destroyed your country.  On false pretenses even.  But we can build you a nice new one . . . for a fee."

          Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

          by corvo on Mon Jun 03, 2013 at 10:53:52 AM PDT

          [ Parent ]

        •  "If they have the skills" . . . (0+ / 0-)

          Iraq was a largely socialist society before we blew it to bits.  Which means most of the folks with those skills were already local, not imported.

          So what did we do: eliminate the entire Iraqi educated class when we destroyed their country?  Did we do a Pol Pot on them or something?

          Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

          by corvo on Mon Jun 03, 2013 at 10:57:00 AM PDT

          [ Parent ]

          •  They fled the country (0+ / 0-)

            The number of refugees was staggering, and what do you want to bet it was the skilled employable ones who found it easiest to emigrate?

            Freedom isn't free. Patriots pay taxes.

            by Dogs are fuzzy on Mon Jun 03, 2013 at 12:52:26 PM PDT

            [ Parent ]

            •  Some of them did. (0+ / 0-)

              Plenty stayed, and are employed well below their capacity.

              But that's okay, because . . . freedom!

              Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

              by corvo on Mon Jun 03, 2013 at 01:44:20 PM PDT

              [ Parent ]

          •  You are completely missing my point... (0+ / 0-)

            IF a foreign entity is going to come in and help rebuild Iraq, WHY NOT an American company?

            •  And YOU are missing the point. (0+ / 0-)

              Having committed egregious crimes against war and humanity in Iraq, how do WE have the right to profit from its "reconstruction"?

              Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

              by corvo on Mon Jun 03, 2013 at 06:25:09 PM PDT

              [ Parent ]

  •  China is acting rationally at least (1+ / 0-)
    Recommended by:
    corvo

    They are using CNPC, the second largest company in the world, as a means to support the continued growth of their entire economy as opposed to Western oil companies which operate solely in the own best interests.

    Their acquisitions of Iraqi oil reserves is a given since their reduced need for profit lets them lower their bids.

    As Chinese state companies increasingly compete with Western firms for nationalized resources around the world, the West will find itself on the losing end of the equation again and again.

  •  I hate to say (3+ / 0-)

    I told you so, but  I told you so (2005, my 2nd diary here).

    190 milliseconds....

    by Kingsmeg on Mon Jun 03, 2013 at 08:36:42 AM PDT

  •  Guess "no war for oil" worked. n/t (0+ / 0-)
  •  Same For Afghanistan (0+ / 0-)

    We will learn that our efforts in Afghanistan have done little but to improve the investment and harvesting opportunities for Chinese global resource firms while generating resentment among the local Afghan population against the US and the West despite the development efforts made.  The Chinese will easily be able to adapt to the Afghan situation, which demands loose legal interpretation for the payments local warlords and chieftains need to manage their territories in the nation.  A firm looking to exploit a natural resource which can readily operate with bribery as a simple cost of doing business will be able to leap-frog over others which really do need to make an accounting of all of those mysterious payments for fees in the ledgers.  Any transportation and communication investments we've made over the last ten years certainly be appreciated too.

    "Love the Truth, defend the Truth, speak the Truth, and hear the Truth" - Jan Hus, d.1415 CE

    by PrahaPartizan on Mon Jun 03, 2013 at 10:55:53 AM PDT

  •  I'm confused: are oil contracts favorable or not? (0+ / 0-)

    It was widely reported that the Western oil companies were getting the best possible one-sided contracts from the defeated Iraqis, not the low-margin ones reported here.

    Freedom isn't free. Patriots pay taxes.

    by Dogs are fuzzy on Mon Jun 03, 2013 at 12:54:15 PM PDT

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