This Symbolizes What Is Wrong In Iraq

Poverty is rampant in Basra, Iraq, despite its oil fields. Few area residents can find jobs at the nearby refinery. Joao Silva for The New York Times

Marooned on Sea of Iraqi Oil, but Unable to Tap Its Wealth -- New York Times

BASRA, Iraq — The orange glow of the giant natural gas flares in the oil fields around Basra represents this bustling city’s wealth of natural resources. But for the impoverished people who live near them, the flames only serve as a reminder of their inability to share in the riches that lie beneath their feet.

The area around Basra, Iraq’s second largest city and main port, accounts for as much as 80 percent of the country’s oil production. It has emerged as Iraq’s best hope for stability and prosperity as it prepares to sell off its top undeveloped oil fields to foreign companies at an auction next month. Of the five largest fields that will be bid on, four are in or around Basra.

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My Comment: Trillions of dollars in oil .... and they cannot get their act together because they are quibbling over pennies.

Three Deals Could Raise Iraq Oil Production To 7 Million Barrels Per Day By 2016

Q+A-Iraq's Oil Contracts, Scale And Obstacles -- Reuters

DUBAI, Oct 16 (Reuters) - Iraq is close to finalising deals at three of its largest oilfields that could nearly triple output and make it the world's number three producer after Russia and Saudi Arabia.

How big are the deals?

The potential increase in oil output from the three deals is around 4.5 million barrels per day (bpd), which would nearly triple Iraqi output to around 7 million bpd from around 2.5 million bpd.

The increase is around 5 percent of global oil supply. It is enough oil to supply nearly a quarter of daily U.S. consumption, or more than half of China's.

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My Comment: Two things go through my mind when I read a story like this one. (1) Saddam Hussein was one incredibly greedy monster. He built his palaces while much of Iraq's population lived in poverty while sitting on this incredible wealth.

(2) Iraq (and U.S.) leaders better not screw this up. Too much is dependent on what Iraq can bring to world oil markets .... any disruption will only bring misery and a prolongation of the present worldwide recession .... as well as greater misery and suffering for the Iraqi people.