Oil Drives ‘New Trade Axis’ Between Iraq And No. 1 Customer China

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China’s thirst for Iraqi oil is propelling an alliance between the two Nations that, according to the International Energy Agency (IEA), promises to send 80 percent of Iraq’s future petroleum exports to China.

The agency’s chief economist said there’s “a new trade axis being formed between Baghdad and Beijing” at a time when American interests in Iraqi oil are as low as they’ve been in the 10 years since U.S. troops first occupied the country.

Couple China’s aggressive search for a generous petroleum reserve with the American oil industry’s reluctance to brave the instability of Iraq’s infrastructure, safety and political climate, and the Iraqi-Chinese “axis” comes into clearer focus.

“The fact that [Chinese oil company] PetroChina is expanding in Iraq is not to me a sign of their strength; it’s a sign of their weakness,” said a New York-based energy consultant.

That’s because, despite the massive public investment that went into the United States’ invasion and reconfiguration of the Iraqi regime, American companies have the luxury of choosing more attractive petroleum mining options elsewhere (including on their home soil), rather than deal with the postwar headache that Iraqi oil logistics has become.

China, meanwhile, has far fewer options, and currently lacks the technology to explore recent and unconventional extraction methods that are benefitting U.S. companies at home and in West Africa.

 

 

Ben Bullard

Reconciling the concept of individual sovereignty with conscientious participation in the modern American political process is a continuing preoccupation for staff writer Ben Bullard. A former community newspaper writer, Bullard has closely observed the manner in which well-meaning small-town politicians and policy makers often accept, unthinkingly, their increasingly marginal role in shaping the quality of their own lives, as well as those of the people whom they serve. He argues that American public policy is plagued by inscrutable and corrupt motives on a national scale, a fundamental problem which individuals, families and communities must strive to solve. This, he argues, can be achieved only as Americans rediscover the principal role each citizen plays in enriching the welfare of our Republic.

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