December 9th, 2005

fashionable

Crude designs.

Crude Designs - The rip-off of Iraq's Oil Wealth. A US-created oil policy will soon kick in, turning 2/3rds of Iraq’s oil reserves over to multinationals, whose return on investment would range from 42% to 162%, far in excess of the industry standard. The terms cannot be overseen by the Iraqi people or their courts, and "could persist for up to 40 years".

Meanwhile, oil production has fallen in 2005 from 2 million barrels a day last year to an average of 1.8 million barrels a day this year. In November 2005, Iraqi crude exports plunged to 1.2 million barrels per day, one of the lowest levels since the invasion.

"The general integrity of Iraqi oil infrastructure appears to us to be heading backwards rather than forwards." - London-based Barclay's Capital