Iraq to Bring 6 New Oil Fields Online

It seems that things are really starting to go decently in Iraq since they are now bidding out 6 of their oil fields to foreign companies. I have a feeling that a US firm will not win outright (they might win 1 or 2 for appearance sake) since the US would be accused of trying to "steal Iraq's oil wealth" or other nonsense. However I would bet on TotalFinaElf (TOT) winning a big chunk since the Iraqis turned to the French in the 70s to help them with their oil industry. This development should change the supply/demand picture going forward.

All the oil fields on the list are producing oil, Shahristani said, noting that the new contracts would raise the country's oil production by 1.5 million barrels per day.

Iraq's current daily oil production is around 2.5 million barrels.

So here we should have 1.5 million barrels of oil that will have added to total world supply by 2009 (bids are due by next March and contracts will be handed out in June) and this should push prices lower. It probably won't burst the oil bubble since good news about Iraq usually isn't very popular with the main stream media.

In any case we have lowered demand, everyone jawboning the market downward, and the potential for increased supply (Iraq and Brazil) going forward. I still think we will have $100 or less (Maybe even $80?) oil by this time next year.

Iraqi Blood Will be On Reids Hands

I think the Bush Admin. needs to press this point home as much as they can.

Reid is in denial about the vicious nature of the enemy and about the
U.S.-led plan to provide more security in Iraq, said deputy press secretary Dana
Perino. "He's also in denial that a surrender date — he thinks it is a good
idea. It is not a good idea. It is defeat. It is a death sentence for the
millions of Iraqis who voted for a constitution, who voted for a government, who
voted for a free and Democratic society."

What is even worse Reid says this kind of thing:

In a question and answer session after his speech, Reid was asked what
the U.S. should do if U.S. troops leave and Iraq collapses into
chaos.

"We know this is an intractable civil war going on now," he
responded.

What sort of idiotic answer is that? Yes, a civil war is going on right now and our troops stand in the way of it becoming far worse. Isn't that a good thing? We are keeping possibly millions of people from dying by us being in the country. Once the security situation gets better maybe then we can pull back. Perino is right that early withdrawl from Iraq would be a death sentence for millions of Iraqis carried out by the Democratic Congress.