The sad thing is that they are right. The good news is that it's because this war has little to do with oil.
It simply isn’t feasible for the US to conquer Iraq for oil.
- Iraq has the 2nd largest oil reserves in the world, however much of this oil is inaccessible due to its depth and inadequate technology.
- Today, although Iraq is seen as a massive oil exporter, it actually produces less oil than African countries such as Nigeria.
- Even if Iraq was conquered and American countries were permitted to drill for oil in Iraq, it would take years for pipelines to be assembled and drilling to reach the oil reserves.
The economic impact of a war in Iraq would be disastrous.
- The American economy is already in a state of severe recession, and the increased cost of petroleum products would be further damaging to the American economy.
- Even in current state of tension with Iraq, oil prices have increased over 50%.
The source of American oil also has to be considered.
- The profits of oil secured are relative to the cost of transportation; it makes logical sense to acquire oil from a nearby course in order to reduce these costs.
- The US receives less than 25% of its oil from the Persian Gulf.
- Of this 25%, legally binding contracts with Saudi Arabian companies require the US to buy over half of its oil from the Persian Gulf from Saudi Arabia.
- The US receives less than 6% of its oil from Iraq.
There is a decreasing demand for petroleum products.
- Demand for every type of oil decreased last year, in percentages ranging from 1% to 18%. This is due to the increased use of hydrogen fuel cells in Europe and the increased production of hybrid cars in N. America.
- Oil demand is predicted to continue to drop over the next few years in increasing amounts.