Sunday, March 18, 2018

Who benefits if the Iran deal is rolled back?

One aim of the Iraq War, revealed by Rupert Murdoch, was to reduce vastly the cost of petroleum. For small oil services companies like Dick Cheney’s Halliburton, the advantages of gaining access to Iraqi bids (which would become possible once regime change had caused Congressional sanctions on Saddam Hussein to lapse) outweighed the likelihood of lower prices.

But for Big Oil, with many long-term bids and perhaps ownership of fields, having Iraqi oil come online would be undesirable, since their assets would be worth less if Iraq flooded the market. Hence the Kochs had an economic reason to oppose that war, and the consequent lifting of sanctions on Iraqi petroleum.

The Iran Deal of 2015 also has the effect of reducing oil prices, since it allows Iran to export more oil and increases supply at a time of stagnant growth in demand. Moreover, there is no prospect of American companies getting any of the Iranian profits. Finding a way to put Iran back under sanctions would firm up oil prices and make billions of dollars for the Kochs. Hence the desire to roll back the Iran deal.

  Juan Cole
Pompeo at State should move this piece of Trump's agenda along, since he's a Koch buddy.

...but hey, do what you want...you will anyway.

No comments: