Contrary to what many people believe, the Iraq war provided few advantages for the US oil industry. The diplomatic cables show that, in most cases, it was competitors to the Americans who often did better in the country. Only one US company truly profited: Halliburton.

During the first bidding rounds, the oil bosses were still laughing. When Iraqi Oil Minister Hussein al-Shahristani issued the first drilling contracts for foreign multinational companies at Baghdad’s al-Rashid Hotel on June 30, 2009, he made clear that there would not be any sharing of profits, but rather a fixed price paid for each barrel of oil drilled.

But the companies still had great hopes. A consortium led by the US company Conoco Phillips wanted to get $26.70 per barrel in one difficult oil field. For the Rumaila area near the Kuwaiti border, ExxonMobil offered $4.80 per barrel. A consortium led by BP would have been happy with $3.99.

‘There was buzz in the room’ during these bids, noted US Ambassador Christopher Hill.

But when the minister announced what his government actually wanted to pay, there was ‘stunned silence.’ Two dollars per barrel — and nothing more. In addition, the companies would have to replace the Iraqis’ ramshackle oil […]