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Secret Report: No Iraq Oil Deal by September

July 20, 2007 8:45 AM

Oil_barrels_baghdad_main 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)

User Comments

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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

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