You know that oil prices are a real problem when people are selling their bodies for gas. Police in the US state of Kentucky charged a woman, who brought a whole new meaning to the phrase “fill her up,” with trading sex for gasoline. However extreme, it shows what’s really on people’s minds these days. US crude oil hit an all-time high above USD 145 a barrel. Boosting inflation, sparking riots and raising a recessionary threat, prices have risen by around 50 percent in 2008 from USD 95.98 a barrel at the end of 2007. Prices were a dip below USD 50 at the start of 2007. Yet, participants at the 19th World Petroleum Congress (WPC) in Madrid disagreed on the causes of soaring oil prices. Oil producers blamed high prices partly on market speculation, while consumer countries attributed them largely to a lack of supplies. Fadhil Chalabi, executive director of the London-based Centre for Global Energy Studies, told New Europe the oil price may reach USD 150 if the present conditions continue. He noted that the market is short of oil. “This is very much exaggerated, that the high level of the price is caused by speculation, perhaps partly yes, but what is really more important is the fundamentals of the market — if there is enough supply to meet demand — (haven’t changed),” Chalabi said. With the world set to remain dependent on oil for decades to come, analysts expressed confidence that even conflict-torn Iraq would add to supplies. US and European Big Oil majors said they are interested in helping to develop Iraq’s huge oil reserves. The Iraqi Oil Ministry announced that it is in negotiations with major oil companies on no-bids Technical Support Agreements (TSAs). The contracts involving ExxonMobil, Shell, Total, BP and Chevron are worth USD 500 million each. Iraq hopes those short-term contracts would help boost output in the country’s largest fields by 500,000 barrels a day. This could help bring down oil prices. However, Chalabi, a former Iraq Oil Ministry undersecretary, said it depends on the size of additional oil coming from Iraq and timing. “If Iraq can add half a million barrels a day in a matter of six months or one year it would help,” he said. ExxonMobil spokesman Len D’Eramo told New Europe that “ExxonMobil would pursue business opportunities as they arise in Iraq” while Shell spokesman Adam Newton said that his company “stands ready to help Iraqi people to rebuild their oil and gas infrastracture.” Total is negotiating a technical service agreement together with Chevron to help develop the West Qurna oil fields in Iraq, Total spokeswoman Lisa Wyler told New Europe, adding that security is a major concern and “we wouldn’t have personnel in Iraq.” BP spokesman David Nicholas also said that the agreements with the government “would not involve any BP staff in Iraq at all.” BP has been involved in some technical support services with the Iraqi southern oil companies around the Rumaila oil field, he told New Europe, adding: “We are certainly in discussions with the Iraqi authorities regarding a technical services contract, but that would essentially be a formalisation, a continuation of the work we are already doing with the Iraqis.” But analysts say US and European companies are ultimately interested long-term Production Sharing Agreements (PSAs) to develop Iraq’s juicy oil and gas fields. Iraqi oil can be produced in these fields for about one dollar a barrel. Iraqi Oil Minister Hussein al-Shahristani announced on June 30 the opening of six key oil fields to 35 foreign firms. Winners will be announced in 2009, the minister said. The same day, the New York Times reported that advisers led by a US State Department team have steered Iraqi oil contracts to Western firms. Nicholas said BP was one of the invited firms that pre-qualified for potential involvement in Iraq, but “regarding longer-term options... we don’t have any information on that yet. It will be for the Iraqis to determine what they wish to do and how they wish to do it.” Meanwhile, Shell, which has been working strictly under a memorandum of understanding with the Iraq National Oil Company on the technical side, is interested in gaining further access to the northern Kirkuk oilfield, an industry source told New Europe. Confusion mounts over Iraqi contracts. “Nothing is disclosed about the nature of contracts,” Chalabi said, adding that foreign oil companies would sign TSAs to revamp or upgrade oil fields only if they think that in the future they would have a stake in Iraq and would share production with the government and “this is very controversial.” In other words: Big Oil wants a big piece of Iraq’s oil pie.