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Secret Report: No Iraq Oil Deal by September
July 20, 2007 8:45 AM
A confidential intelligence report prepared for U.S. officials this week concludes a key U.S. benchmark of progress in Iraq, a law to divide oil revenues equitably among the provinces, "will not be agreed by September, even if cosmetic legislation is put in place."
An agreement on how to divide oil profits among Shiite, Sunni and Kurdish areas is one of 18 key benchmarks of progress to be reviewed by the U.S. in September.
More than 90 percent of Iraq's revenue comes from the export of oil.
Click Here for Full Blotter Coverage.
But the report, obtained by the Blotter on ABCNews.com, says the issues the three sides are too far apart to agree on are the "role of foreign companies in the oil sector" and the division of the oil profits.
The report also includes a grim assessment of the possibility of an increase of oil output in Iraq despite its huge reserves.
It concludes that security in Iraq is so unstable "it is unlikely that any major foreign oil company will be able to invest in Iraq during 2008 (unless they are heavily underwritten by the U.S. government)."
The report says the Kurds favor foreign oil companies playing a larger role, but that is opposed by many Shi'a in the south "because of a fear they will lose control of their assets to outsiders."
Do you have a tip for Brian Ross and the Investigative Team?
July 20, 2007 | Permalink | User Comments (44)
Is that the reason why most Bush cronies wants to stay longer in Iraq? no oil deal?
All his Generals are saying we're staying beyond September because ......... no oil deals? at the expense of American lives?
Seems like impeachment should be the order of the day for Congress. Now.
Posted by: marc | Jul 20, 2007 9:29:49 AM
This is about business security, marc. The three parties cannot even stop killing each other over infrastructure power; how would you expect them to agree on trade relalionships?
Also, where exactly does YOUR representative (or the democrats in Congress stand on this issue? Do you even know?
Lastly, you are dependent on petroleum BIG TIME. It's the way the global economy is...these are YOUR economic interests at stake here...
Posted by: Jazz | Jul 20, 2007 10:01:31 AM
If people do not think that oil plays a part in this war, I feel very sorry for your ignorance. Of course the Shia in the south (where most Iraqi oil is) are skeptical of foreign oil companies. Bush and especially Cheney are trying to make it so that BIG OIL will completely control Iraqi oil. Why would someone be surprised by that? Oil for American lives, what a trade off, huh? I think impeaching Presidents is bad for the country but not impeaching Bush and Cheney is much, much worse.
Posted by: Bobby | Jul 20, 2007 10:34:31 AM
Iraqis better be very careful about "the role of foreign companies in the oil sector". It would be best for their own interests not to agree to anything at this point.
Posted by: US Citizen | Jul 20, 2007 10:54:04 AM
What Is Really Happening In Iraq
Posted by AJStrata on July 20th, 2007
Needless to say the SurrenderMedia is not interested in Iraq because they are obsessed with reporting what is happening in Congress about Iraq than what is happening in Iraq. As if the lense of Congress can shed clarifying light onto the Iraq situation. Congress tends to be more fiction than fact, hyperbole than insight, and pandering than leadership these days. As opposed to a clarifying lense it is a madhouse distortion mirror, reflecting what is wrong in DC verses what is happening in Iraq.
Well, for those more interesting in what is happening in Iraq here are some news updates for today. Stories the SurrenderMedia misses as it looks to DC for information. The top US diplomat in Iraq sees progress, and fear that the Surrendercrats will destroy all the recent progress in a fit of impatient, pre-mature withdrawal:
Ryan Crocker, the top U.S. diplomat in Iraq, said Thursday that Prime Minister Nouri al-Maliki’s government is making some political progress but faces considerable difficulty in the months ahead trying to heal a nation long gripped by violence.
Posted by: duhize | Jul 20, 2007 11:16:12 AM
marc...You Liberals are still on the kick,,,LOL Bushes income is public, last year was $400,000 that was it, all from us tax payers
Impeachment...there are not legal grounds to do it, You are all still bitter bbecause Clinton got impeached, one of 4 presidents in history it be impeached, all Democrates
Posted by: Freddie | Jul 20, 2007 11:51:00 AM
It seems very clear that the build-up of military personnel and now delays on the progress report regarding Iraq is centered on Iraq's oil. I am not surprise as to why this Administration insisted we go into Iraq in the first place. Impeachment is in order.
Posted by: Michelle | Jul 20, 2007 12:31:59 PM
We are staying in Iraq to try to void
existing Oil Leases that the current Iraqi Government have stated they intend to honor with other foreign countries (Example: China). Until we can persuade/intimidate/arrange for US investment in those fields, Cheney has no intention of letting the current
Iraqi Government succeed without US support and control.
Posted by: Leprkin | Jul 20, 2007 12:34:56 PM
marc,
How does one thing follow from the other?
What do you think an "oil deal" will do?
The military is concerned first and foremost with security. Security is wwhat will allow the space needed for the politicians and diplomats to do their jobs.
The "oil deal" has to do solely with how revenue from sale of petroleum will be distributed to and among the Iraqi provinces.
Posted by: RTO Trainer | Jul 20, 2007 1:05:25 PM
Puppets do not know how to lead. They are not leaders. They only know how to satisfy their masters. So they can never reach an agreement. We do not let the real leaders come up for fear of that they will become independent. Until we pick real leaders even if they are against us the Iraqi groups will be fighting with each other.
We keep hearing from the Republican politicians let's wait till Septermber and see what the Generals say. Who in their right mind believe that the Generals come out against the President. The report will os vague that the President interprets his way and the war goes on. Liberals and Conservatives who oppose this war get real and be prepared for a long war. This war will only end when there is real leader in Iraq not a puppet of the USA.
Posted by: RealityBitesRealHard | Jul 20, 2007 1:10:14 PM
Anyone remember why we were in Kosovo, why we bombed the crap out of that place during the clinton years, Anyone remember why we were on the beach of Normandy, was Hitler coming for Us?
Posted by: Freddie | Jul 20, 2007 1:46:00 PM
We are sending our sons and daughters to DIE for oil... it is as simple and as horrific as that.... who will be the next to bid their children farewell to die for oil profits?
(((( IMPEACH BUSH AND CHENEY NOW!!! ))))
Posted by: GreedRulesUS | Jul 20, 2007 2:10:32 PM
duhiz...
i don't know where you get your info but bush's income last year was $765,000 and he saved $31,000 in taxes because of his cuts. cheney saved $110,000 in taxes bucause of the cuts.
Posted by: val | Jul 20, 2007 3:41:28 PM
I've been told I'm nuts & full of it on this one so if anyone else has ever been told this or even seen it let me know.........in my travels from 3 different vietnam vets in 3 different parts of the U S they all told the same tale about our reason for being in vietnam was oil. one man claimed the south china sea was "a floating oil bed". maybe it's just me but if the powers that be would level with people on "why we're there" the overall opinion might have a little better chance at being "popular".
Posted by: denny | Jul 20, 2007 4:53:25 PM
The war was about OIL from the beginning. Sadaam had NOTHING TO DO WITH 911, like Bushco said. They want all the oil in Iraq and figured it was the EASIEST country to conquor. I remember when it started, ALL REPUBLICANS said, "IT WASN'T ABOUT OIL", but now it turns out that it IS ABOUT OIL. What do you all have to say now to weasel out of this one.
Posted by: artist22 | Jul 20, 2007 5:04:37 PM
The US military has always protected the economic interests of the US; it's one of their primary functions...the Navy's primary purpose is to protect the world's shipping lanes for products including, petroleum - from the South China Sea to the Persian Gulf to the Suez Canal. How else would you protect national interests, if not by military strength?
I'm not a "war-mongering republican", but the truth is that all administrations since the discovery of middle east oil 100 years ago have had to deal with the acquisition of and distribution of petroleum for global consumption...
Posted by: Jazz | Jul 20, 2007 5:24:58 PM
You mis-state the facts about the oil controversy: This is not merely " a law to divide oil revenues equitably among the provinces". It is a law that de-nationalizes all new oil fields. Major US oil companies would gain a much larger share of profits than is the case than in Saudi Arabia and Kuwait where foreign oil companies cooperate freely with the national oil companies. ABC - Give us the whole story.
Posted by: James Houle | Jul 21, 2007 6:57:27 AM
RTO states that... "...The "oil deal" has to do solely with how revenue from sale of petroleum will be distributed to and among the Iraqi provinces."
He is partially correct since obviously he is totally unaware of the contents of the PSA (profit sharing agrement) as it was formulated, written and presented to the treasonous Iraqi puppet government to pass.
The PSA states that those oil companies (Mostly American) that invest in Iraqi oil fields stand to get 75% of the profits from those oil fields and that the Iraqi government is to get the remaining 25%. This agreement is to last some 30 years.
I doubt ANY agreement signed by this present puppet Iraqi quizzlings will be accepted by future Iraqi legitimate governments. It is also 100% against International law that an occuping force should influence decisions made by the people/nation they occupy.
Posted by: Albert | Jul 21, 2007 7:10:55 AM
Funny! Oil was not Bush's reason for invading Iraq, but it is the key reason he gives for leaving.
Posted by: 371961c | Jul 21, 2007 8:06:27 AM
Impeach Bush and shut down the Masons
Posted by: john | Jul 21, 2007 8:54:31 AM
One should not expect a deal anytime soon, certainly not by September, as Brian Ross outlines.
I think some readers confuse, or deliberately conflate U.S. "national interests" with profiteering corporate interests. They are not one and the same. To date, nearly $1 trillion in blood and treasure has been appropriated to execute Bush Executive Order: 13303. The consensus among loyal patriots holds this enterprise is not, and never has been in the national interest.
Further, a full reading shows the Iraqi parliament and their constituenicies balk as they come to understand what lies ahead. Even if the three provinces agree to split oil revenues equitably, this amounts to a meager 2.3 cents for each dollar of revenue generated. U.S. oil companies take 93 percent of the revenue and leave the Iraqis fighting over pennies.
It is logical to assume this corporate racket and the prospect of indefinite occupation is what fuels Iraqi resistance. Reason dictates it is time for U.S. forces to be withdrawn from an increasingly untenable situation.
Posted by: Darwin | Jul 21, 2007 9:32:01 AM
The proposed Iraqi oil law will give 70% to 80% of oil revenue to American and British oil companies for a period of thirty years. Why is this feature of the law never mentioned by the MSM? The Iraqis get to "share" the rest. Bush does not want to leave Iraq until this sweet deal is signed for his big oil cronies. Every American soldier dying now is doing so for big oil companies and no other reason.
Posted by: Greg | Jul 21, 2007 10:03:21 AM
Bush admitted in a speech less than a year ago that we are there for the oil. I couldn't believe he made that statement. The mass media didn't bother to follow up on this admission. By locking down the Iraqi oil fields Cheney and buddies can keep the price of oil high. So we're not there to make sure we keep gasoline prices down. We're there so Cheney and buddies can keep oil prices sky high and the profits soaring.
Posted by: skyreader7 | Jul 21, 2007 10:21:08 AM
The Iraqis may be divided over how to tun their country, but they are not stupid and will not simply hand over their major source of national wealth to BushCo blessed Western oil companies.
And good for them and their nation's future.
Every time I hear an MCM* pundit or politician speak of the importance of agreening to the oil "distribution" law the maladministration thinks is so vital, I ask--from whose perspective is it important? BushCo's? Big Oil's? Maliki's desire to stay in power? Not the Iraqis' benefit.
*MCM--Mainstream Corporate Media
Posted by: jawbone | Jul 21, 2007 12:20:33 PM
I fear for all of you folks posting here. Some simply are ill informed, or hate USA political scenes, however blight it may be. Most forget 9/11, and fact you are infidels, and the AQ guys want to kill you and me for enjoying the American dream.
As we speak, the Kurds to the north, the most stable providences of Iraq, has production sharing contracts with Norwegian oil/gas company. They have drilled 3 wells so far, all good producers. They are trucking the oil out now, since can not hook up to a major processing facility or pipeline. Bet their oil is worth more than $74/barrel!
In the south, SW of Badghad, a small non-USA indepedent company is active there, to restore oil production in those fields.
Posted by: Mickey | Jul 21, 2007 12:28:06 PM
Hey Jawbone, it is confused citizens like you we fear.
Reason 1: The mass media propaganda still has millions of citizens like you still believing Iraq is connected with the 9/11 attacks and Bin Laden. WRONG!
Reason 2: Extreme Islamic terrorist groups that call us "infidels" do not want to kill us because of our "freedoms", they want to attack us to change the historical and continuing US foreign policies that benefit the "west" and hurts the majority of the average middle eastern muslim populations.
Posted by: praxis | Jul 21, 2007 7:19:46 PM
You should not refer to this as: "...a law to divide oil revenues equitably among the provinces..." You should refer to it as "The attempt to steal 80% of Iraq's oil for US oil companies for the next 35 years!"
Iraq better not let us broker this oil deal. And you think they hate us now? This will ensure many decades of Iraq instability and revenge on us for our oil heist. Just as we did to Iran in 1953, and look how nicely our relationship turned out.
The US started planning for this back in Feb 2001 with Cheney's Energy Task Force. Cheney and PNAC had it planned out for many years. Thanks to the corporate media many Americans are suprised to hear about this.
Posted by: august | Jul 21, 2007 7:35:13 PM
Oil oil oil. There is no way we are there for a small group of people to get rich. Oil is linked to the value of the American dollar. If America does not control a portion of the oil, it risks the oil being valued on another currency. If the oil is priced using another currency (other then the US dollar) the US dollar will crash. Does anyone understand this?
Posted by: df | Jul 21, 2007 7:51:40 PM
I never thought it would come to this, the United States, invading, occupying and stealing oil from a sovereign country. Since we are suppossed to be a free market country, why can't we just buy oil on the world markets like everyone else and pay for the oil they will sell us? We are not free marketers we are simply economic imperialists who will use our power to gain resources.
It is true that this power grab for oil has everything to do with propping up the U.S. Dollar. Has anyone noticed how weak the U.S. Dollar has been lately? If we didn't have Iraq's huge oil reserves under our control, the U.S. Dollar would be significantly weaker. We are there to control the oil and keep our Dollar from crashing and devaluing.
We are acting like a big bully in a schoolyard. Shame on Bush and the rest of our "leaders", including the Democrats, who refuse to set us on a new course of action. We need leadership to find alternatives to oil to end this madness in the Middle East. But the Republicans and Democrats alike seem to only care about short term monetary interests, like controlling oil to make obscene profits. Yes, the new Iraqi Oil Sharing law will give mutinationals, mainly American oil companies, highly unusual amounts of the oil revenues via the PSAs, up to 75%. That is what the Iraq War is about in a nutshell, and it has been planned ever since Bush decided to run for President. He told his biographer in 1999 that he intended to invade Iraq. The Cheney Energy Task Force was just the planning meeting to work out the logistics of the invasion. The 9/11 attacks were the convient excuse to put those plans into motion. What a con game!
Posted by: Rock_nj | Jul 21, 2007 10:58:26 PM
df. You are like Ralph Cramdon, YOU ARE The Greatest. Both Iraq and Iran are interested in selling for Euros, which are backed by Gold. Our money, that is backed by The Federal Reserve Notes, which is known as Fiat Currency (Backed by nothing), just hot air. When the World starts selling their oil for the Euro, instead of our counterfeit money it will cause the collapse of Our American Empire.
President Kennedy and (www 11110) will further explain our problem.
Impeach Bush and Cheney
Posted by: phil bush | Jul 22, 2007 12:01:16 AM
Now there's a clear thinking chickenhawk. Let's fight in Iraq to save the dollar, cuz our economy is going in the dumper. If Bush would just tell the truth and say the same thing.
Posted by: Malcolm | Jul 22, 2007 12:13:19 AM
Remember this, 14 of the 19, 911 high jackers were Saudi Arabians. Although Saudi Arabia has been the largest producer of Oil, and has been a country for less than a hundred years was they still have people living in mud huts with no electricity of running water for just as long. So much for the trickle down effect of wealth.
Now you should understand why the Bush Klan is not going to change course.
Posted by: Gordon Soderberg | Jul 22, 2007 3:39:05 AM
Yes, the dollar is based on oil. That is why we went into Iraq because Saddam was going to switch from the dollar the the Euro. That would have crashed America;s economy. That is why the US is also rattling swards against Venisualia. Just in case we don't secure the oil we need to run the military witch uses 60% of the oil the US imports. Yes, the economy runs on oil. Yes, the military uses most of it to secure more. Yes you pay for it at the pump. The only question is, do you think it's worth having a oil thirsty military and economy run by former executives of the Oil industry and the cronies. Remember where Condi Rice came from Standard Oil of California. The very same company that set up the Saudi government and ARAMCO.
Posted by: Gordon Soderberg | Jul 22, 2007 3:51:17 AM
Can someone please explain how OUR OIL got under THEIR sand.
Am I hearing that because another country has more of a given resource than the US we can just step in and take it.
Are our sons and daughters dying so we can steal another countries oil ?
Is there any chance that if we poured 1/2 a trillion dollars into alternative energy sources we could free ourselves from foreign oil or any foreign power for that matter ? Or is it necessary to kill half a million people, destroy a good % of their country and waste our finest resource, our sons and daughters so those oil barrels end up with U.S.A. stamped on them ?
Anyone who feels that Iraqi oil is our oil ought damn well be over there fighting for it or do you all have "Medical Conditions, or more important things to do then to put your mouth where your beliefs are ? "
Robert R
Posted by: Rooberoo | Jul 22, 2007 6:07:21 AM
robert, jazz is clear on the point: "we need it because we want it; therefore it becomes our interest; therefore we are justified in stealing it. that is because u.s. interests (i.e., transnational corporate interests based in the u.s.) are worth more than any other interests. "
yes, they are saying that. tens of thousands u.s. soldiers killed and maimed; hundreds of thousands of dead iraqis, going on a million; 4 million who have left the country or have been displaced internally; a generation of children traumatized and of people left maimed or disfigured. isn't it all worth it for the trillions of dollars the oil companies can make on the deal, the guaranteed supply of oil to the pentagon so that we can go on to take the war to iran, lebanon, syria, and the rest of the middle east?
we are empire, says jazz, and we do not need to stop using a hugely disproportionate share of the world's energy resources. we need a greater share still. we deserve it. war is good.
Posted by: LatAm | Jul 22, 2007 1:49:33 PM
LatAm, please do not attempt to paraphrase what I had posted; what you said in your post does not even come close to what I said, and you know it...
Posted by: Jazz | Jul 23, 2007 10:06:06 AM
The only reason this deal isn't signed yet is because the Shi'a, who make up 60% of the country's population and have a majority of the oil fields located in their territory, do not believe they should be forced to share that oil 'equitably' with Sunni who were not so generous under Hussein. And by the way (and this comes from a Democrat living in the Mideast who has never voted for Bush)... since when do we expect multi-national oil companies to go into a war zone and spend massive amounts of money on oil infrastructure and NOT receive any return on that investment? Democrats... are we still capitalists or has Bush added "the radicalization of the Left" to his already crummy legacy?
Posted by: TB | Jul 23, 2007 10:27:34 AM
It's all been oil & greed from the beginning. Cheney knows that, & it is the only reason why he was choosen as Bush running mate.
President Ford was surprised on how Cheney handle the situation in Iraq & was surprise that Cheney not Bush invaded Iraq.
Bush is not smart enough to think for himself. Go back to the energy policy that Cheney crafted with the oil executives. That has'nt been made public. Since that time, gas prices never went below $2.50.
The oil profits are waiting to be invested and develop the oil fields of Iraq with Bush & Cheney having the major stake.
Posted by: marc | Jul 24, 2007 10:28:26 AM
The problem with politics today is the fact that we have a bunch of buffoons on both sides. They are all spouting rhetoric back and forth, but no one has ideas or issues. And if they do have an idea, once it is put through the political machine, it comes out as nothing. Sometimes it seems they disagree for the sake of disagreement.
I really do not care why we went into Iraq. Any dwelling on that is a waste of time. What we need here is a solution and to get out. I think we all agree on that, whether democat, republican or independent. Problem is that all politicians are using this war as a tool to get elected. I say solve the problem now and get elected later.
I see two possible solutions. Make Iraq the 51st state. Disarm the masses, close the borders and educate them. Not realistic, I agree. I guess colonialism is dead.
Posted by: John Z - Cleveland | Jul 24, 2007 11:43:50 AM
I thought this war was going to pay for itself based upon the oil revenues? Or so that was the line of pap feed the american people.
More information in the prelude to war that now with a little more analysis and due diligence turns out to be inaccurate.
Good Times
Posted by: bw1 | Jul 25, 2007 3:27:17 PM
I agree that historically the primary function of the military has been to protect the economic interests of a nation-state, whether one is speaking of the British Empire, or of other European countries during their ascendancy or of the United States. Whether that truly means protecting the national interest is questionable. The use of the Allied military in WW I and II was to defend against the armed incursion by a predatory force into peaceful lands, made more desperately necessary by Germany's institutionalized murder of it's own citizens. In contrast, the military actions initiated by the US on it's own behalf in the Philippines, South America, and the Near East have been equally predatory actions in support of US business interests. The result is the wide spread enmity of peoples deprived of the inherent value of their countries' natural resources, which instead over the last two hundred years has gone to develop the wealth and power of the US and it's partner countries. Why is the US considered Satan by many Islamic people? They are poor; and in our information rich global world, they can see the direct link between their poverty and our riches. So the use of the military to support business interests cannot in the long run be considered in the national interest, at least not in a world where everyone has access to some level of education. That the people of the United States either do not see or refuse to acknowledge the theft that has made our society great is a weakness that can lead to the destruction of our security and strength.
If we continue to fight them over there, in order to maintain control over their wealth, sooner or later we will be fighting them here.
Posted by: Margarita | Jul 29, 2007 2:58:31 PM
The Iraqi government would do well to stop trying to decide how to break up the oil revenue among the "tribes,states,groups" etc. By simply stating that Iraqi oil belongs to all Iraqis and profits will be used to build a new Iraq.Further stating that 20 percent will be devided equally among the Iraqi people as seed money.The government would require registration,and an oath,(something very simple,like"I am an Iraqi and I love Iraq) Families registered would get a check with one share for each person (including women and children). The government would gain support as one that truly sees equality among its' citizens
Posted by: frank cook | Jul 31, 2007 4:03:21 PM
naunsa mo?
Posted by: draft | Aug 4, 2007 2:39:42 AM
If he gets the deal, do you think they will honor it?
This is just so wrong, we need to clean our own house, stay in our own yard and mind our own business!
Bring the troops home, NOW!
Posted by: White Mountain | Aug 5, 2007 10:26:50 AM
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