Sunday, December 18, 2005

Doin' my homework

So Friday while no one else was talking about the gay cowboy movie, I had a request that I do some homework and find out how long it would take Iraq to pay us back in oil for the cost of "liberating" their country.

The caller asked that I assume 2 million barrels a day and suggested a cost per barrel of $30.

The cost of the war, according to congressional appropriations - as of Sunday night was $227,480,000,000.

Using the previously stated assumptions, it would take Iraq 3,791 days to pay off their financial debt - or just under 10 1/2 years.

However, according to NYMEX, the cost of oil Sunday night was $58.06 - almost double the callers stated price. Iraq's PEAK oil production was just before it invaded Kuwait in 1990 (3.5 million barrels per day). In 2004, they averaged 2.2 million barrels per day, so to think that we're going to get all that, is silly. Let's change that figure to 1.5 million barrels a day - leaving them 700,000 barrels - more than adequate.

Using the new figures, Iraq could repay us in 2,612 days - just a hair over 7 years.

And assuming all that,  the 2,000 plus American soldiers who gave their lives would have done so for free. Calculate the loss of life and there's no price - per barrel - or anything else - that would have made it worth it.

Want more details on Iraqi oil production? Click here.