So it seems that Iraq could contain much more oil than conventionally assumed, surpassing Saudi Arabia as the world's largest source of the black gold. Of course, there are clear and present obstacles to bringing Iraq online to its full potential. Considering that the war in Iraq seems without end, regardless of the temporal reduction in violence, the underlying tensions could increase if more oil is found. Also, there is a great antipathy in Iraq against foreign oil companies from coming in and owning the oil fields. The Iraqi's in 1972 (I believe) nationalized their oil, like most other states did in the 70s, and that was a great nationalistic source of pride of breaking the most obvious tie of neo-imperialism in the country.
Since the country has been invaded by a neo-imperialist power, the country again is struggling with the realities of its oil resources being privatized and profits flowing to Houston and London instead of Baghdad. One of the the reasons that it is suspected that Al-Sistani may launch a fatwa against the US forces is due to the possible privatization of Iraq's oil:
http://www.theyoungturks.co
m/story/2008/5/24/21107/968
3/Diary/Actual-news-from-Ir
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upation-from-Al-Sistani-The question that most people will be asking is, if we can get Iraqi oil online will it make a difference? That depends, as the article stated it could upwards of 20 years to get Iraq up to snuff, thats assuming that the country is somehow pacified. I do not believe that Iraq's oil, even if it produced at its maximum level would dramatically change the situation as oil production in other countries are already starting to decline, most importantly in Russia.
What may bring the price of oil down in relation to Iraq is if the oil fields are indeed privatized. The five sisters have been pushing up the price of oil because they are corporations, and corporations need to make profits, and if you are not producing more oil the only way to increase profit is through inflation. If these companies can get huge concessions in Iraq, we could see the price of oil decline in a serious way. If they are denied access to Iraq's oil, prices will remain high, tempered by new Iraqi production but nevertheless high.