U.S. influence on the Iraq Oil Economy Essay Example | Topics and Well Written Essays - 2000 words

U.S. influence on the Iraq Oil Economy - Essay Example The importance of the Iraqi oil in the context of establishing American stronghold over global economy and its possible implications on the political scenario of the world has been discussed in detail.The paper focuses on the US influence in shaping the oil economy of Iraq. An attempt has been made to analyze the interest of the US in the oil resource of the country.The steps taken by the present US administration to monitor the oil industry has also been discussed in detail. How successful are they in establishing themselves as a global power; the scopes offered by the present political sensitivity in Iraq. The paper also evaluates the importance of the Iraq oil industry as a significant energy resource, benefiting industries worldwide.Oil constitutes one of the major economy sources of Iraq, the amount of oil present in the Persian Gulf region, has lured many world powers to establish their stronghold. Controlling the resources commanded a power (economical and political), which es tablished its identity has a reigning world power.After Saudi Arabia, Iraq has the largest oil reserve in the world. Researchers of the field are of the opinion that there are more potential oil reserves, estimated to be approximately 200 billion barrels of high quality crude oil. Statistics show that the production of oil in Iraq has remained consistent since 1980, with an estimated production of 2.5 million barrels per day. In comparison the consumption carve had hardly risen over the 0.5 million barrels per day estimated in the last two decades.... Experts have estimated that the oil reserves of Iraq will not dry up for at least 5 more centuries, as compared to the oil source of the US (estimated to last for no more than a decade). BACKGROUND The US monopoly on the global oil industry started with the nationalizing of the British Petroleum in 1953, after the dissolve of the Dr. Muhammad Mosaddeq lead government in Iran. Safeguarding the interest of the US multinationals and restrain any imperialism. The US continues to maintain a stronghold on the oil resources of the Gulf region ever since. Oil contributes to 95% of Iraq's economy. At a rate of 2.5 million barrels per day, experts evaluating the economic potential have estimated the figure to rise to 3.5 million barrels per day. (US to Take Bigger Bite of Iraq's Economic Pie, 2004) The Persian Gulf constitutes about 30 percent of the oil produced worldwide but nearly 70 percent of the total oil reserve of the world also constitutes that of the region. So in the event of any global oil crisis this is the only region that will meet the demands for oil. Controlling this highly profitably resource would not only prove to be beneficial for any country, which wishes to establi sh its power on the world. But it would also increase the chances of boosting the economic status of the respective nation. So the US interest in this highly profitable venture is well established (The US invasion of Iraq: Oil, the Mother of all Factors, 2005) Experts analyzing the reasons for the invasion of Iraq by the US have formulated an opinion that it is perhaps the oil resource of the country that propelled the attack from the US forces. The opinions are broadly based on the Project for the New American Century (PNAC)-"Rebuilding America's