Sunday, August 24th, 2008 | Author:

If you remember back to June, I posed the possibility that the real motivation for our invasion of Iraq was to regain American control of their oil fields, which Bush has finally accomplished. I’ve also been sounding off that Iran is just as good a target, for the same reasons, despite political rhetoric to the contrary.

Well, this article in the NY Times provides some additional motivation.

Oil production has begun falling at all of the major Western oil companies, and they are finding it harder than ever to find new prospects even though they are awash in profits and eager to expand.

Part of the reason is political. From the Caspian Sea to South America, Western oil companies are being squeezed out of resource-rich provinces. They are being forced to renegotiate contracts on less-favorable terms and are fighting losing battles with assertive state-owned oil companies.

And much of their production is in mature regions that are declining, like the North Sea.

The reality, experts say, is that the oil giants that once dominated the global market have lost much of their influence — and with it, their ability to increase supplies.

Bush has only got 148 days left to make big oil happy. Think he’ll get the job done?

Category: big oil, Bush, Iran, war
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