$60 Oil Isn't High Enough To Save Iraq

oil iraq tbi

The timing for oil’s price drop couldn’t be worse for the U.S.-Iraq entanglement, the Washington Post reports. As the U.S. hopes to cut the cord, Iraq is facing budget shortfalls brought on in part by their own incompetence and in part by the halving of the price of oil.

Now that there isn’t pricey oil to ease the nations transition to independence, there’s a good chance violent outbreaks will occur. What could have prevented this? It looks like better discipline on our part and the Iraqis.

Here’s a condensed version of the story:

  • Iraq can’t maintain billions of dollars worth of U.S. donated equipment, due to the budget shortfall.
  • American military experts told the defence Ministry that it needed to allocate at least $68 million this year for spare parts for U.S.-donated equipment. The ministry set aside $1 million, U.S. officials said.
  • U.S. spent $628 million building maintenance capabilities, when it only wanted to spend $228 million doing it. Iraq hasn’t taken responsibility of the maintenance, which is costing us extra.
  • There’s 262,000 Iraqi soldiers on payroll, roughly 12,000 more than its authorised strength. When there’s an audit to see who should be getting paid and who gets cut, expect violent outbreaks.

These would be problems regardless, but with cheap oil, they become much worse.

Read the whole story →

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