It IS about Middle-East oil

Iraq spends oil revenues on its own reconstruction:

Last fall, as Gen. David H. Petraeus, the top American commander in Iraq, and Ryan C. Crocker, the American ambassador to Iraq, reported to Congress on the state of the war, the Bush administration provided figures that contrasted sharply with those of the accountability office. The administration reported that by July 2007, Iraq had spent 24 percent of the $10 billion in oil revenue set aside for reconstruction that year.

The accountability office disputed those figures, saying they were based in part on projections that proved inaccurate. But in a recent phone interview, a senior Iraqi official gave even more bullish estimates of the expenditures. Citing official Iraqi Finance Ministry figures, the official, who spoke on condition of anonymity in order to provide information that had not yet been publicly released, said by the end of last year, Iraq had spent 63 percent of its capital budget, a leap over the previous year that would indicate rapid progress in governmental efficiency.

Finally, Senators Levin and Warner ask the question looming over the entire rebuilding effort: "Why has the Iraqi government not spent more of its oil revenue on reconstruction, economic development and providing essential services for the Iraqi people?" (Glanz NYT) Link

American tax payers are paying for reconstruction in Iraq:

The Bush administration's Iraq policy has already imposed significant costs for Americans. In fact, U.S. taxpayers have spent over $600 billion in Iraq, including about $48 billion for stabilization and reconstruction activities. According to the GAO report, the Iraqi government has generated over $90 billion in sales of crude oil from 2005 to 2007 and will generate close to that amount in 2008 alone.

The Government of Iraq's failure to adequately invest in its own population and infrastructure is a direct byproduct of President Bush's failed strategy in Iraq. An American military occupation has not created meaningful political progress, and the Government of Iraq has allowed U.S. taxpayers to foot the bill for rebuilding Iraq. (Waters) Link

Halliburton HAS been exploiting its ties to the US Government:

The three-way division of the largest Pentagon contract in Iraq ends the monopoly held by KBR, which has been accused of mismanagement and exploiting its political ties to Vice President Dick Cheney. (Risen NYT) Link

It IS about Middle-East oil:

HOUSTON (AP) — Halliburton, the oil field services company, said Monday that its emphasis on Middle Eastern markets had contributed to a nearly 5 percent increase in fourth-quarter profit.

The company has been adding people and equipment to the Middle East and elsewhere — even moving its top executive overseas — which it says helped Eastern Hemisphere sales grow 27 percent in the fourth quarter versus a year ago.

Halliburton said results were squeezed by higher costs and lower pricing in North America, a trend that also hindered a rival, Schlumberger, and could persist.

Net income in the fourth quarter rose to $690 million, or 75 cents a share, compared with $658 million, or 64 cents a share, in the period a year ago. (NYT) Link

Is $690 million just pocket change?