Iraqi oil

Offshore platform located in the Gulf of Mexic...

Offshore platform located in the Gulf of Mexico, port location Cd. Del Carmen. (Photo credit: Wikipedia)

Iraqi oil is abundant and cheap to drill since deposits are near the surface. If supplies of petroleum exceed demand, the oil companies will maximize their profits by producing oil that is cheap to produce. That will be Iraqi oil rather oil in the US in Alaska or the Gulf of Mexico that is more costly to produce. That’s how capitalism works and the oil companies will work to maximize their profits even if that means producing oil in Iraq rather than in the US.