U.S. Oil Industry Opportunities in Iraq

This article will discuss whether the present situation in Iraq presents new opportunities for U.S. oil companies to expand their business into Iraq, as well as the ethical and legal risks of attempting to do so. In addition, this discussion will identify the some of the governments and/or organizations with whom these companies should deal if they decide to embark on a business venture in Iraq.

Potential Opportunities

Until recently, it was not possible for companies to enter into business in Iraq, due to U.S. law and U.N. Sanctions. The present situation in Iraq has changed that, because "Iraq is now a free and open market" (Tom Foley's Remarks). Iraq is rich in natural resources. The US Energy Information Administration states that "Iraq holds more than 112 billion barrels of oil - the world's second largest proven reserves" (Iraq: Oil and Economy). This is a tremendous opportunity for U.S. oil companies. According to Tom Foley, Director of Private Sector Development for the CPA in Baghdad, "Iraq presents an exceptionally attractive business opportunity for foreign investors

Ethical Risks

The current situation in Iraq is a volatile one. Accounts of bombings and shootings are reported almost daily. This becomes an ethical risk when an organization considers sending employees to Iraq to do business. Is it unethical for the company to put its employees at risk of physical harm? Tom Foley states that businesses "understand these security risks and accept them as just a cost of doing business". Organizations may show ethical responsibility if they "know and use people in their organizations who accept, and sometimes actually prefer, the risk in these environments" (Tom Foley's Remarks).