Oil Wells That End Well

Here's the headline in The Independent: "Future of Iraq: The spoils of war
How the West will make a killing on Iraqi oil riches."

Under a new law the Iraqi parliament might (is this news yet?) pass, Western oil companies could "pocket up to three-quarters of [oil] profits in the early years" of drilling. I thought this was a pretty good deal until I read the fine print in the seventh paragraph. After costs have been recouped, the take goes down to 20%.

Sounds fine to me. You want people to come in and help you, you gotta give them something. Opponents claim the westerners have the Iraqis over a barrel (PI), but would you want to go in for less when there's such instability? The real problem is one of perception. No matter what amount is requested, people will be unhappy, figuring they're getting ripped off.

PS Good piece by Ronald Bailey on the dangers of not bringing private companies in to drill.