Big Oil is Back in Iraq

Remember the steady stream of comments from the White House and Pentagon stating that the war in Iraq would cost American taxpayers almost nothing?

Well, with actual expenses now over $600 billion and total incurred costs estimated as high as $3 trillion, we can pretty much rule out the idea that the war will "pay for itself." Or, to be more precise, it won't pay back the American taxpayer. We'll leave that debt to be paid by future generations.

But Big Oil can't wait that long, and others will now be able to join Halliburton (and former Halliburton subsidiary Kellogg Brown & Root) at the trough. ExxonMobil and other Big Oil companies have already benefitted as disruption in the flow of oil and uncertainty in the Middle East has sent oil prices (and oil company profits) to record highs.

But it gets better... a lot better. Iraq’s Oil Ministry announced last month that a handful of Big Oil companies will be awarded no-bid contracts to develop Iraq's oil resources. Four of the larger companies (Exxon Mobil, Shell, Total and BP) were original partners in the Iraq Petroleum Company, until the Iraqi petroleum industry was nationalized in 1972 by none other than Saddam Hussein.

Saddam's gone and Big Oil is back in business in Iraq.

Meanwhile, the State Department is trying it's best to maintain the appearance of neutrality (and a straight face), and will at least pretend to investigate allegations that the State Department provided behind the scenes support in the negotiations.

So who really caused the price of oil and gasoline to skyrocket? Well, a recent McCain TV ad strongly implies it was......none other than Barack Obama!

Seriously, you can't make this stuff up.