ABSTRACT

This chapter provides a brief history of the development of the oil industry in modern day Iraq. Iraq is historically a secular society with the different religions and ethnic groups co-existing without significant conflict. Control of licencing, collection and distribution of oil revenues is how the central government can maintain national authority. On 28 May 1901, the Glasgow-based Burmah Oil Company signed a concession agreement with the Persian government for the exploitation of oil resources throughout the Persian Empire. The United States suggested an open-door policy to the British Foreign Office in an attempt to permit prospecting for oil in Iraq from 1919 onwards, which was refused by the British and French governments. A glut would push oil prices downwards, so any single oil company was required to regulate its production to meet market demand at a price that would maximise profits and assist global investors in the industry.