Sustainable Development of Iraqi Oil in International Law: Prospects and Challenges (Essay Sample)

SUSTAINABLE DEVELOPMENT OF IRAQI OIL IN INTERNATIONAL LAW: PROSPECTS AND CHALLENGES
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Introduction
Sustainable development is becoming increasingly significant to Iraq’s national context as the country comes out of decades of conflicts. As defined by the Iraq governments national development plan (2010-2014) and the UN development assistance framework(UNDAF) for 2011 to 2014, attaining this objective will require reframing strategies of national development as well as implementing policies towards environmental as well as long term economic development.
Iraq’s oil as well as gas sector is a major factor in Iraq’s sustainable development. Anticipated to become one of the largest in the world, Iraq’s energy sector has already dominated the national economy. In 2011, Iraq’s oil revenues reached roughly 83 billion US dollars and the oil as well as gas accounted for an estimated 60% of GDP, 90% of government revenue and 99% of exports. Therefore, governance priorities will focus on management of oil as well as gas resources and resultant revenues in a strategic as well as sustainable manner.
However, with the U.S and its allies having occupied Iraq there has been little well-informed discussion concerning the occupation. It is not surprising to read that the U.S is interested in its policy concerning Iraq by desiring to get oil from Iraq. These kinds of claims as well as disclaimers frequently omit any reference to the considerable organ of international law concerning the rights as well as duties. So, how does the Iraqi oil obfuscate the occupation picture?[Langenkamp, Dobie,.R. "What Happens to the Oil: International Law and the Occupation of Iraq." (2003): 1-2,5,12-14,16-23,30,40-42]
Iraq’s Oil
Iraq has oil reserves of at least 112 billion barrels. This oil is not found on high seas but on land. Iraq is not a third world country and furthermore, Iraq has vast experience as well as skills in development of petroleum. Her oil reserves are well dispersed, a fact that makes development more alluring. Various players can find development without straining the infrastructure of a specific area. The Kurdish north has key fields with major reserves. In short, Iraq is definitely one of the most alluring petroleum provinces in the world and has no water or pipeline problems. Iraq’s petroleum is not just a case of potential, it is impossible to consider the future of Iraq without carefully and extensively analyzing the impact that petroleum will have. The key question ponders on the rights as well as duties under the international law of an occupying power, whoever that is.[Langenkamp, Dobie,.R. "What Happens to the Oil: International Law and the Occupation of Iraq." (2003): 1-2,5,12-14,16-23,30,40-42]
Role of the International Law
International law is frequently honored in breaching and not observation, the U.S claims it would comply with international law in cases of occupation, as it has done in previous occupations. Whether the U.S has fully achieved this is still unclear. While the U.S wants to be perceived as a trustworthy superpower, it endeavors to comply with the prescriptions of international law, both customary as well as written. In the uprising of a conflict between international law as well as public opinion, the genesis is the law itself.
Petroleum as an immovable public property subject to usage under usufruct rules
Queries regarding whether oil reserves considered immovable property has been affirmatively answered. It was treated as such in the litigation concerning the issue. (View N.V. DeBatafache petroleum Maatschappi versus the damage war commission, 23 I.L.R 810, Ct of appeals, Singapore). A query that is more complex is the extent as well as nature of duties and rights of the usufructuary or administrator of petroleum production fields. The guarantee of a usufruct is its right to use minus depleting the asset capital. The comparison of the fruit from the tree is frequently used.[International Energy Agency. "Iraq Energy outlook." (2012): 18,33,49-75,115,122 .]
Concerning mining, an historic exception has been there to the proposition stating that assets must be returned undiminished after a given time. In the U.S this is referred to as the doctrine of open mine which holds that the life tenant can keep on producing any oil well or mine that is producing or open during the time of creation of the usufruct.
The Usufructuary Obligations
The usage of this term in the Hague regulations 1907 necessitates a careful analysis prior to unquestioning applications concerning Iraq’s oil fields. The usufruct right has been described as "the enjoyment right of a thing, property that is entrusted to another, as well as drawing from the same all profit, advantage, and utility production without alterations of the substance thing. The duty of the usufruct is to maintain the property and if need be carry out repairs. In addition, the property right was devolved from the Roman era where it was comprehended that a usufruct could work already open mines but could not open a new one. The exception of the open mine is generally adhered to.[Langenkamp, Dobie,.R. "What Happens to the Oil: International Law and the Occupation of Iraq." (2003): 1-2,5,12-14,16-23,30,40-42]
Is drilling of new wells possible?
The case of Iraq as a production province with thousands of production wells as well as several high productive formations, the issue of drilling new wells could be hindered for several years. It could take years to bring back existing wells to maximum production, water floods installation, as well as other maintenance pressure techniques and additional penetrating zones in existent wells. However, inefficiency, lack of oilman would be low by the prospect of being unable to drill more wells in areas where there is potential of existing wells. Alan Gerson claims that in spite of drilling new oil wells in existing fields; exploration can open up new areas. This is so because discovery of new fields can in fact improve the value of real estate whereby owners can have reversionary interests subject to temporary interests of an occupant. Gerson’s position concerning Israel was that it was entitled to exploratory well drills in the West Bank and the Sinai offshore areas. This argument would carry more weight in Iraq’s case whereby reserves are so huge that depletion is far-fetched. Might an owner in Iraq’s position refute to a usufructuary who, after several years, returns petroleum asset that are very high in incoming earning. Authors Johnson and Claggett, claim that the article 55 history is indicative of unanimous views that the usufructuary was obliged to not ruin the substance of property held. This interpretation has been widely challenged by a number of authors including the U.S state department. The consensus was in E.R Cummings favor: "in conclusion an occupying power has no right to exploit oil from a given area… when resources of oil were not exploited before commencement." This was the stand the U.S State Department took concerning the matter of which was in its memo.[United Nation. "Sustainable development, green economy and oil and gas in Iraq." (2012): 1-2] [International Energy Agency. "Iraq Energy outlook." (2012): 18,33,49-75,115,122] [Jiyad, Ahmed,. M. "Oil, sustainable development and the management of the transformation in Iraq." (2013): 2,4] [Langenkamp, Dobie. R and Rex J. Zedalis. "What happens to the Iraq oil: thoughts on some significant, unexamined international legal questions regarding occupation of oil fields?" (2003): 1,4-6,9]
The people that are familiar with operations of petroleum are aware that numerous activities are undertaken to improve production without need for drilling new wells. Wells may be reworked with replacements of pumps as well as tubing, water injection, re-fracing, acidization or natural gas. Furthermore, new equipment like tanks, pipelines, valves, and heater-treater does have an effect on levels of production.
Directional drilling
This involves reaching parts of an existing formation that is not yet drained, but can produce results from formations that were not available in the initial borehole. A comparison can be drawn from an existing mine as well as the opening of a new drift.
Application of the Usufructuary rule to Iraq
Iraq’s vast reserves justify a different approach. If a country’s amount of natural resources is finite, then the usufructuary is obligated to return it without depletion. Iraqi reserves at the present rate would exceed more than 126 years of production. In addition, as anyone engaged in petroleum evaluation knows, current production levels are more significant that reserve levels. Therefore, the usufructuary has a duty to act as a judicious operator and improve the value of the asset by continuously developing the drilling fields.
The private property complication
Both the Geneva and Hague Conventions have provisions concerning the taking and seizure of private property. Under international law, the public-private classification is handled very differently. If public property is moveable, it can be taken by the occupying power to pay occupation costs, whereas immovable property can be used in pursuant of the rules of usufruct for similar purposes. This includes rights to work mines as well as oil fields. Private real as well as personal property cannot be seized without compensation. Should the property be seized, it must be paid with an attached receipt indicating value fixed. In addition, seizure must be in proportion to country’s resources. The U.S army during desert storm took a completely prepared form for requisition making...