The main reason I chose to write about Iraq is that I am currently scheduled to deploy there in about two weeks. This will be my third deployment to this country and the first since 2005. I am currently scheduled to be in the city of Balad, Iraq for a year long deployment.
Iraq is a country in southwest Asia and one of the countries that makes up the Arab World. As of April 2009, the population of Iraq is 31,234,000 which around eighty percent of that population is Arab and the other twenty percent is made of mostly Kurds who lives in the northern part of Iraq. The Kurds are the group of people that in the 1980s were gassed by Saddam Hussein. Currently, Iraq ranks third in the world behind Saudi Arabia and Iran in the amount of oil reserves with 115 billion barrels, but the United States Department of Energy believes that ninety percent of Iraq has not been explored for oil and they estimate that another 100 billion barrels are yet to be discovered. Only around 2000 oil wells have been drill in Iraq compared to 1 million oil wells in Texas alone.
In 2008, China’s biggest oil company signed the first post-ivasion oil field development contract. This contract was seen as a test of Iraq’s willingness to open up an industry that as always prohibited foreign investments. Earlier this year, the Chinese oil company found oil in the Ahdab field in the Wasit Providence which is southeast of Baghdad. Some of the farmers in that area does not like the idea. As for the Iraqi government, they are using the oil revenue from this contract as the foundation of the national budget. This fall the Iraqi government plans on ten oil fields to foreign investors. In June, they signed a contract with the Chinese company and British petroleum for development deal in the Rumaila field.
I believe that Iraq allowing foreign companies into its country to drill for oil will have a great impact on the global economy. First, it will helps with the Iraqi’s national budget and allow for revenue to help rebuild the nation. Also, it will brings jobs to both the local Iraqis and the country of whatever buys the contract. Iraq’s oil production charges are among the cheapest in the world. This will allow for the lower crude oil prices which will leads to lower gas prices.
In conclusion, I believe that Iraq decision to allow foreign oil companies to drill is not only good for Iraq but will also benefit the global economy.
http://www.nytimes.com/2009/09/06/world/middleeast/06iraqoil.html?pagewanted=1&_r=1
