Great Article on Iraq War Expounding Truths We All Knew 10 Years Ago!
I originally posted this about a month ago, but had to repost it now because of blogger technical difficulties.
militant capitalism marches on, Marx is saying I told you so!
http://edition.cnn.com/2013/03/19/opinion/iraq-war-oil-juhasz/index.html?hpt=hp_c2
Editor's note: Ten years ago the war in Iraq began. This week we focus on the people involved in the war, and the lives that changed forever. Antonia Juhasz, an oil industry analyst, is author of several books, including "The Bush Agenda" and "The Tyranny of Oil."
(CNN) -- Yes, the Iraq War was a war for oil, and it was a war with winners: Big Oil.
It has been 10 years since
Operation Iraqi Freedom's bombs first landed in Baghdad. And while most
of the U.S.-led coalition forces have long since gone, Western oil
companies are only getting started.
Before the 2003 invasion, Iraq's
domestic oil industry was fully nationalized and closed to Western oil
companies. A decade of war later, it is largely privatized and utterly
dominated by foreign firms.
From ExxonMobil and Chevron to BP and Shell, the West's largest oil companies have set up shop in Iraq. So have a slew of American oil service companies, including Halliburton, the Texas-based firm Dick Cheney ran before becoming George W. Bush's running mate in 2000.
The war is the one and only reason for this long sought and newly acquired access.
Oil was not the only goal of the Iraq War, but it was certainly the central one, as top U.S. military and political figures have attested to in the years following the invasion.
"Of course it's about oil, we can't
really deny that," said General John Abizaid in 2007, former head of
U.S. Central Command and Military Operations in Iraq. Former Federal
Reserve Chairman, Alan Greenspan agreed,
writing in his memoir: "I am saddened that it is politically
inconvenient to acknowledge what everyone knows: the Iraq war is largely
about oil." Then-Senator and now Defense Secretary Chuck Hagel said the same in 2007: "People say we're not fighting for oil. Of course we are."
Surviving al QaedaFor the first time in about 30 years, Western oil companies are exploring for and producing oil in Iraq from some of the world's largest oil fields and reaping enormous profit. And while the U.S. has also maintained a fairly consistent level of Iraq oil imports since the invasion, the benefits are not finding their way through Iraq's economy or society.
These outcomes were by design, the result of a decade of U.S. government and oil company pressure. In 1998, Kenneth Derr, then CEO of Chevron, said, "Iraq possesses huge reserves of oil and gas-reserves I'd love Chevron to have access to." Today it does.
In 2000, Big Oil, including Exxon,
Chevron, BP, and Shell, spent more money to get fellow oilmen George W.
Bush and Dick Cheney into office than they had spent on any previous
election. Just over a week into Bush's first term, their efforts paid
off when the National Energy Policy Development Group, chaired by Dick
Cheney, was formed, bringing the administration and the oil companies
together to plot our collective energy future. In March, the task force reviewed lists and maps outlining Iraq's entire oil productive capacity.
Planning for a military invasion was soon underway. Bush's first Treasury Secretary, Paul O'Neill, said in 2004: "Already by February [2001], the talk was mostly about logistics. Not the why [to invade Iraq], but the how and how quickly."
In its final report in May 2001,
the task force argued that Middle Eastern countries should be urged "to
open up areas of their energy sectors to foreign investment." This is
precisely what has been achieved in Iraq.
Here's how they did it.
The State Department Future of Iraq Project's Oil and Energy Working Group met from February 2002 to April 2003 and agreed that Iraq "should be opened to international oil companies as quickly as possible after the war.
The list of the group's members was
not made public, but Ibrahim Bahr al-Uloum -- who was appointed Iraq's
oil minister by the U.S. occupation government in September 2003 -- was
part of the group, according to Greg Muttitt, the journalist and author
of "Fuel on the Fire: Oil and Politics in Occupied Iraq". Bahr al-Uloum promptly set about trying to implement the group's objectives.
At the same time, representatives from ExxonMobil, Chevron, ConocoPhillips, and Halliburton, among others, met with Cheney's staff
in January 2003, to discuss plans for Iraq's postwar industry. For the
next decade, former and current executives of western oil companies
acted first as administrators of Iraq's oil ministry, and then as
"advisers" to the Iraqi government.
Before the invasion, there were
just two things standing in the way of western oil companies operating
in Iraq: Saddam Hussein and the nation's legal system. The invasion
dealt handily with Hussein. To address the latter problem, some both in
and outside of the Bush administration argued that it should simply
change Iraq's oil laws through the U.S.-led coalition government of Iraq
which ran the country from April 2003 to June 2004. Instead the White
House waited, choosing to pressure the newly-elected Iraqi government to
pass new oil legislation itself.
This Iraq Hydrocarbons Law,
partially drafted by the western oil industry, would lock the nation
into private foreign investment under the most corporate-friendly terms.
The Bush administration pushed the Iraqi government both publicly and
privately to pass the law. And in January 2007, as the ''surge" of
20,000 additional American troops was being finalized, the president set specific benchmarks
for the Iraqi government, including the passage of new oil legislation
to "promote investment, national unity, and reconciliation."
But due to enormous public
opposition and a recalcitrant parliament, the central Iraqi government
has failed to pass the Hydrocarbons Law. Usama al-Nujeyfi, a member of
the parliamentary energy committee, even quit in protest over the law, saying it would cede too much control to global companies and "ruin the country's future."
In 2008, with the likelihood of the
law's passage and the prospect of continued foreign military occupation
dimming as elections loomed in the U.S. and Iraq, the oil companies
settled on a different track.
Bypassing parliament, the firms
started signing contracts that provide all of the access and most of the
favorable treatment the Hydrocarbons Law would provide - and the Bush
administration helped draft the model contracts.
Upon leaving office, Bush and Obama
administration officials have even worked for oil companies as advisers
on their Iraq endeavors. For example, former U.S. Ambassador to Iraq
Zalmay Khalilzad's company, CMX-Gryphon, "provides international oil companies and multinationals with unparalleled access, insight and knowledge on Iraq."
The new contracts lack the security
a new legal structure would grant, and Iraqi lawmakers have argued that
they run contrary to existing law, which requires government control,
operation, and ownership of Iraq's oil sector.
But the contracts do achieve the
key goal of the Cheney energy task force: all-but-privatizing the Iraqi
oil sector and opening it to private foreign companies.
They also provide exceptionally
long contract terms, high ownership stakes, and eliminate requirements
that Iraq's oil stay in Iraq, that companies invest earnings in the
local economy, or hire a majority of local workers.
Iraq's oil production has increased by more than 40% in the last five years to 3 million barrels of oil a day
(still below the 1979 high of 3.5 million set by Iraq's state-owned
companies), but a full 80% of this is being exported out of the country
while Iraqis struggle to meet basic energy consumption needs. GDP per
capita has increased significantly, yet remains among the lowest in the
world and well below some of Iraq's other oil-rich neighbors. Basic
services such as water and electricity remain luxuries, while 25% of the population lives in poverty.
The promise of new energy-related
jobs across the country has yet to materialize. The oil and gas sectors
today account directly for less than 2% of total employment as foreign companies rely instead on imported labor.
In just the last few weeks, more than 1,000 people have protested at ExxonMobil and Russia Lukoil's super-giant West Qurna oil field, demanding jobs and payment for private land that has been lost or damaged by oil operations. The Iraqi military was called in to respond.
Fed up with the firms, a leading coalition of Iraqi civil society groups and trade unions, including oil workers, declared on February 15
that international oil companies have "taken the place of foreign
troops in compromising Iraqi sovereignty" and should "set a timetable
for withdrawal."
Closer to home, at a protest at
Chevron's Houston headquarters in 2010, former U.S. Army Military
Intelligence officer Thomas Buonomo, member of Iraq Veterans Against the
War, held up a sign which read, "Dear Chevron: Thank you for dishonoring our service."
Yes, the Iraq War was a war for
oil, and it was a war with losers: the Iraqi people, and all those who
spilled and lost blood so that Big Oil could come out ahead.
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