30 June 2009

Iraqi Oil and China

Today the NY Times publishes an article about how China is aggressively bidding on Iraqi oil reserves.

I have always intuitively believed the Iraq Was was about oil. Yes, it's been about Saddam Hussein, Al Quaeda, and WMD's too, but economics always play a role in the weave in the fabric of international policy and international relations.

Let's face it Iraq has a lot of untapped and inefficiently produced, refined, and distributed oil underneath it. Since the United States imports 40% of it's oil from Nigeria why the big US push? My answer has been to secure sources for oil on behalf of its largest international lender: China. America has secured the largest proven reserves of oil in the world on behalf of it largest lending partner.

No none of it's a big conspiracy. I do think that it is more than coincidence that America biggest lender is aggressively bidding for drilling rights to oil that America has secured with it's blood and treasure.

Well maybe that is America's blood and China's treasure. So then the securing, drilling, and distribution of Iraqi oil is a national American and Chinese joint venture. Makes natural business sense to me. 

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