2.0somethings

The Iraqi Oil Ministry is negotiating a series of no-bid contracts with a collection of Western oil companies. This would be the first major commercial oil development to take place since the US invaded Iraq in 2003. More than 40 companies from a variety of countries including Russia and China submitted proposals, and it is unusual for oil companies to get no-bid contracts (Only one country, however, has more than 100,000 troops in Iraq). There is a lot going on here and many ways you could look at this. You could argue that this supports the idea that the US went to war in Iraq for oil (an idea that has a lot of credence in that Arab world). You could also argue that this is a very favorable turn of events because the sooner oil production can start the sooner Iraq will have money to begin investing in infrastructure. You could also argue that no-bid contracts in general are a bad idea. However, you really don’t have to argue anything since no one will be talking about this at your office. Unless you work at Shell.

In the face of skyrocketing oil prices, Americans are driving less. Specifically, drivers have cut back by 30 billion miles over the last 6 months. This is the largest decrease since the fuel crisis in the late 70s. It’s weird to see market forces at work.

Senator Obama has opted out of Public Financing. We had mentioned he was considering it before, but now he has actually pulled the trigger. If he had gone with public financing, he would have been limited to spending $84.1 million for the general election campaign. Contrast that with the fact that he raised $95 million in February and March alone. See our previous coverage of the issue for the proper way to discuss this at the office.

A runoff election in Zimbabwe is planned for June 27th, and prominent international and African groups are escalating their rhetoric against President Mugabe. Since losing the initial election (but not by enough to prevent a runoff), President Mugabe has launched a terror campaign against the opposition party that has included beatings, murders, threats of civil war should he lose and multiple imprisonments of the opposition leader. “Every sign” that it “will never be free nor fair” indeed.

Because I didn’t post the news yesterday, some people might have missed that the Celtics won the NBA championship. Just an FYI that Boston rules.

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