• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 days Evergrande is going Belly Up.
  • 2 days World’s Biggest Battery In California Overheats, Shuts Down
  • 5 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 14 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 day Poland Expands LNG Powered Trucking and Fueling Stations
  • 12 hours The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 3 days And now, hybrid electric locomotives...
  • 3 days The Painful Death of Coal
  • 3 days Ozone layer destruction driving global warming
  • 3 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 3 days Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Premium Content

Iraq: An Army of Soldiers to be Replaced by an Army of Businessmen

After nearly nine years, all US Forces are mandated to withdraw from Iraqi territory by 31 December 2011 under the terms of a bilateral agreement signed in 2008. Now the job facing the war-torn country is to re-build its economy. On Tuesday, prime minister Nouri al-Maliki gave a presentation to more than 400 executives representing a wide range of industries including petroleum, engineering and construction, commercial aviation, architecture, maritime cargo and financial services; the leaders of American commerce and industry, to proclaim Iraq’s “limitless” opportunities “open for business” to American investors. He said that, "It is not now the generals but the businessmen and the corporations that are at the forefront" of Iraq's future.

Maliki was basically playing the role of a salesman, pitching his country to “the West”. He announced that "circumstances (in the country) have improved because of better security," yet still acknowledged the difficulties ahead of developing a market-based economy governed by transparency laws and international regulations after the planned and strictly controlled economy of Saddam Hussein. Thomas Nides, the Deputy Secretary of State, told CNN "Make no mistake, this is a country that's developing, its commerce is developing, it's going to take time, it's going to take energy," but, "U.S. companies are going there because they believe they can make money and at the end of the day that's what it is about.”

For the first few months of 2011, as the war was slowing down and the forces were leaving the country in greater numbers, total foreign direct investment in Iraq reached $70 billion. The United States represented 11.6% with $8 billion of investment, up from nearly $2 billion in 2010. However Milaki has stated that “he is not satisfied with the number of US corporations in Iraq. All sectors of the economy are there, open for business, for American business."

Despite all the desire for an increase in investment, Iraq has not previously been hospitable to US business offers. Two years ago the Iraqi government auctioned oil production contracts, but many members of Congress were outraged as not a single US energy firm secured a deal. Instead they were forced to watch as lucrative multi-billion-dollar contracts went to Russian and Chinese firms.

Iraq wants to try and diversify its economy to focus on financial, medical, agricultural, educational and infrastructural services, but oil still remains the dominant sector. The country boasts (mostly) untapped oil reserves of at least 115 billion barrels of oil, the fourth largest in the world, and therefore foreign oil companies have been chomping at the bit to return. Current output is about 2.5 million barrels per day, but according to OPEC could nearly be doubled by 2016.

Following times of conflict there generally dawns a period where those with the necessary resources can make billions. Iraq is just entering such a period and the government is actively searching for those people with the necessary resources. The IMF has already projected that the Iraqi economy could grow at a faster pace than China or India over the next two to three years. It is the perfect time to invest and help create a well balanced, modern country, as well as secure a stake in the worlds fourth largest oil reserves.

By. James Burgess of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Fred Banks on December 17 2011 said:
    I've had students from Iraq, to include I think Kurdistan, and they were very smart. Their intelligence and the oil in that country means that, theoretically, they have what it takes. In fact they had it nine years ago before that man started a war on the basis of a lie.
  • william dixon on January 01 2012 said:
    If this be the case then why has Iraq not established its own money to prior times when its Dinar was its money. Why is it still recieveing funds from america and its people forced to use ration cards or stamps?

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News