The American Mind

An draft Iraqi oil deal has been hammered out between Sunnis, Shia, and Kurds:

The national oil law lies at the heart of debates about the future of Iraq, particularly the issue of a strong central government versus robust regional governments. The oil question has also inflamed ethnic and sectarian tensions. Sunni Arabs, who preside over areas of the country that apparently have little or no oil, are adamant about the equitable distribution of oil revenues by the central government.

Here’s another recomendation made irrelevant from the Iraq Study Group report. You have to think the ISG knew that significant progress was being made. Tom Maguire goes tongue-in-cheek: “The Baker Commission gets results!”

A sticking point has been the Kurds’ quest for greater regional control of revenue from current production as well as future oil finds.

At the start of the talks, the Kurds fought to ensure that regional governments have the power to collect and distribute revenues from future fields, Iraqi and American officials said. They also proposed that revenues be shared among the regions based on both population and crimes committed against the people under Mr. Hussein’s rule. That would have given the Kurds and Shiites a share of the oil wealth larger than the proportions of their populations.

But the Kurds dropped those demands, said Barham Salih, a deputy prime minister who is a Kurd and the chairman of the committee.

“Revenue sharing is an accepted principle by all the constituent elements of the Iraqi government, including the Kurds, and that is the unifying element that we’re all hoping for in the oil law,” Mr. Salih said in an interview.

It’s very encouraging the Kurds have made a concession on future revenues. It diminishes the chance of the embryonic state cracking up. That lets Turkey and Iran breath a sigh of relief knowing the chances of an independent Kurdistan have been reduced.

What you don’t see in the deal is the U.S. getting oil money. The contracts mentioned in the NY Times story involve companies from Turkey and Norway. And I thought invading Iraq was “all about the oil.” Someone forgot to tell the Iraqis.

“Iraqis Near Deal on Distribution of Oil Revenues” [via OTB]

“A Potentially Big Development that Could Keep Iraq from Fracturing”

“Progress On Oil Revenue”

UPDATE: Mohammed at Iraq the Model reports record oil revenues and sees some positive steps the government is making on the economic front. [via The Corner]