Kurds

Big Oil Argued for U.S. Crude Exports to Fend Off Iran, But First Exporter Vitol Group Also Exported Iran's Oil

The American Petroleum Institute (API) successfully lobbied for an end to the 40-year ban on exporting U.S.-produced crude oil in part by making a geopolitical argument: Iran and Russia have the ability to export their oil, so why not unleash America?

What API never mentioned — nor the politicians parroting its talking points — is that many of its member companies maintain ongoing business ties with both Russia and Iran.

And The Vitol Groupthe first company set to export U.S. crude after the lifting of the ban (in a tanker destined for Switzerland), has or had its own ties to both U.S. geopolitical rivals.

ExxonMobil and Shell Stamp Huge Oil and Gas Deals in Iraq

Just a few weeks after President Barack Obama announced U.S. troops are “leaving” the war-torn country, ExxonMobil and Shell each announced major new oil and gas production agreements in Iraq.

On November 12, ExxonMobil signed an oil production deal with the Kurdish Regional Government to drill in Iraqi Kurdistan, located in northern Iraq. This comes on top of an existing oil deal it landed in 2009, to drill for oil in the West Qurna Field, located in southern Iraq.

The New York Times explained both deals:

Exxon and its partners agreed to invest $50 billion over seven years to increase output by about two million barrels of oil per day there, at West Qurna Phase 1, bringing more new oil to market than the United States currently produces in the Gulf of Mexico. Margins, though, are low. Kurdistan offers more lucrative production-sharing agreements, allowing the company to earn a larger share of revenues and to count more of the crude on its books, which helps boost stock prices.

Days later on November 15, Royal Dutch Shell signed a $17 billion natural gas production deal with the Iraqi government. Shell will utilize the natural gas by-product from oil produced at the West Qurna Field, the Rumaila Field, and the Az Zubair Field, and transform it into a usable product. “Shell said it would sell the gas to electrical utilities in Iraq, but that it may also eventually export some,” explained The New York Times.

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