Offshore Drilling Ban to be Lifted by Bush

[Scrooge McSam]

No apology necessary.

I struggle with it. The oil companies retaining 70% does seem high to me. The Iraqi government certainly seems to think so as well, but of course they would, wouldn't they?. Of people I've talked to, most are surprised to hear the actual breakdown. I know I was.

And you?

[Kevy Baby]

Originally Posted by Scrooge McSam

I struggle with it. The oil companies retaining 70% does seem high to me. The Iraqi government certainly seems to think so as well, but of course they would, wouldn't they?. Of people I've talked to, most are surprised to hear the actual breakdown. I know I was.

Where are you getting the 70% retention? Any foreign investment in Iraqi oil would be based on flat fee based contracts: they would get NO revenue from the sale of oil.

Besides, it would be a very risky investment for an oil company given the instability of the Iraqi government. Analysts are not even sure that US oil companies would even want to venture into this.

[Scrooge McSam]

Originally Posted by Kevy Baby

Where are you getting the 70% retention? Any foreign investment in Iraqi oil would be based on flat fee based contracts: they would get NO revenue from the sale of oil.

Besides, it would be a very risky investment for an oil company given the instability of the Iraqi government. Analysts are not even sure that US oil companies would even want to venture into this.

Old link (knew I should have bookmarked that article), but this is close to what I read.

Oil companies would immediately take 70% of profits to pay for their infrastructure improvements, then revert to around 20% after those costs are paid.