The following was written three decades ago:

Although its original concession of March 14, 1925, cove- red all of Iraq, the Iraq Petroleum Co., under the owner- ship of BP (23.75%), Shell (23.75%), CFP [of France] (23.75%), Exxon (11.85%), Mobil (11.85%), and [Calouste] Gulbenkian (5.0%), limited its production to fields constituting only one-half of 1 percent of the country's total area. During the Great Depression, the world was awash with oil and greater output from Iraq would simply have driven the price down to even lower levels.

The Bush administration wants its current partners to stay in power in the Shiite areas, since ISCI and al-Maliki's Da'wa party support a continued U.S. military presence in Iraq. Washington would probably therefore have preferred that the provincial elections in the Shiite south be postponed. Yet the administration knows that there is little hope of mollifying the Sunni Arabs unless they have an opportunity to vote for their own provincial leadership. The very step that might help calm down the Sunni Arab provinces, however, may inflame tensions in the Shiite south, if the Sadrists toss ISCI out on its collective ear.

Al-Maliki went to Basra on Monday, March 24, to oversee the attack on city neighborhoods loyal to al-Sadr. By Friday, the Iraqi minister of defense, Abdul Qadir Jasim, had to admit in a news conference in Basra that the Mahdi army had caught Iraqi security forces off guard. Most Sadrist neighborhoods fought off the government troops with rocket-propelled grenades and mortar fire. At the same time, the Mahdi army asserted itself in several important cities in the Shiite south, as well as in parts of Baghdad, raising questions of how much of the country the government really controls.

Oil Up on News of Basra Explosion

Thursday, March 27, 2008 - FreeMarketNews.com

...Saboteurs also blew up one of Iraq's two main oil pipelines from Basra, cutting at least a third of the exports from the city which provides 80 per cent of government revenue, a clear sign that the militias — who siphon significant sums off the oil smuggling trade — would not stop at mere insurrection. -Times on line (Britain)