It's the oil fields, stupid!
What Congress Really Approved: Benchmark No. 1: Privatizing Iraq's Oil for US Companies
By Ann Wright, t r u t h o u t | Guest Contributor
Ann Wright served 29 years in the US Army and US Army Reserves and retired as a colonel. She served 16 years in the US diplomatic corps in Nicaragua, Grenada, Somalia, Uzbekistan, Kyrgyzstan, Sierra Leone, Afghanistan, Micronesia and Mongolia. She resigned from the US Department of State in March, 2003 in opposition to the war on Iraq.
Saturday 26 May 2007
On Thursday, May 24, the US Congress voted to continue the war in Iraq. The members called it "supporting the troops." I call it stealing Iraq's oil - the second largest reserves in the world. The "benchmark," or goal, the Bush administration has been working on furiously since the US invaded Iraq is privatization of Iraq's oil. Now they have Congress blackmailing the Iraqi Parliament and the Iraqi people: no privatization of Iraqi oil, no reconstruction funds.
This threat could not be clearer. If the Iraqi Parliament refuses to pass the privatization legislation, Congress will withhold US reconstruction funds that were promised to the Iraqis to rebuild what the United States has destroyed there. The privatization law, written by American oil company consultants hired by the Bush administration, would leave control with the Iraq National Oil Company for only 17 of the 80 known oil fields. The remainder (two-thirds) of known oil fields, and all yet undiscovered ones, would be up for grabs by the private oil companies of the world (but guess how many would go to United States firms - given to them by the compliant Iraqi government.)
No other nation in the Middle East has privatized its oil. Saudi Arabia, Kuwait, Bahrain and Iran give only limited usage contracts to international oil companies for one or two years. The $12 billion dollar "Support the Troops" legislation passed by Congress requires Iraq, in order to get reconstruction funds from the United States, to privatize its oil resources and put them up for long term (20- to 30-year) contracts.
(The rest is here.)
By Ann Wright, t r u t h o u t | Guest Contributor
Ann Wright served 29 years in the US Army and US Army Reserves and retired as a colonel. She served 16 years in the US diplomatic corps in Nicaragua, Grenada, Somalia, Uzbekistan, Kyrgyzstan, Sierra Leone, Afghanistan, Micronesia and Mongolia. She resigned from the US Department of State in March, 2003 in opposition to the war on Iraq.
Saturday 26 May 2007
On Thursday, May 24, the US Congress voted to continue the war in Iraq. The members called it "supporting the troops." I call it stealing Iraq's oil - the second largest reserves in the world. The "benchmark," or goal, the Bush administration has been working on furiously since the US invaded Iraq is privatization of Iraq's oil. Now they have Congress blackmailing the Iraqi Parliament and the Iraqi people: no privatization of Iraqi oil, no reconstruction funds.
This threat could not be clearer. If the Iraqi Parliament refuses to pass the privatization legislation, Congress will withhold US reconstruction funds that were promised to the Iraqis to rebuild what the United States has destroyed there. The privatization law, written by American oil company consultants hired by the Bush administration, would leave control with the Iraq National Oil Company for only 17 of the 80 known oil fields. The remainder (two-thirds) of known oil fields, and all yet undiscovered ones, would be up for grabs by the private oil companies of the world (but guess how many would go to United States firms - given to them by the compliant Iraqi government.)
No other nation in the Middle East has privatized its oil. Saudi Arabia, Kuwait, Bahrain and Iran give only limited usage contracts to international oil companies for one or two years. The $12 billion dollar "Support the Troops" legislation passed by Congress requires Iraq, in order to get reconstruction funds from the United States, to privatize its oil resources and put them up for long term (20- to 30-year) contracts.
(The rest is here.)
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3 Comments:
First a question : Bush is infamous for his use of signing statements. Did Bush comment whether he would comply with Congress’s wishes ? Hasn’t Congress told us in the past that DOD / Administration would issue various milepost reports … yet I have never heard that they have been issued.
Assigning benchmarks makes some sense … but only if the other person agrees to accept them.
The Oil and de-Baathification goals are very contentious and most likely will not be accomplished by September … if they are passed, the end result could be the demise of the Prime Minister Nuri al-Maliki coalition government.
The Oil has a lot of opponents … from the oil union workers to various political parties.
On May 24th, UPI reported : The Iraqi Federation of Oil Unions earlier this month sent a letter to both the U.S. and European legislatures asking them to stop pressing for the law. Both Iraqi politicians and oil technocrats, as well as outside oil and political experts, say the pressure is making matters worse, forcing a bill through that has no consensus.
Husain al-Falluji of the Iraqi Accord Front [Sunni fundamentalist] said Friday that the IAF would never approve the new petroleum law until the constitution is first amended. He said that the party has made a firm decision in this regard.
And how’s this for a nasty left hook on the International Oil Companies … Reuter’s is reporting that state-owned National Iranian Oil Company have reached a general agreement to develop previously untapped oil fields shared with neighboring Iraq. Iraq has already invited Iranian firms to bid for contracts to build at least four oil refineries in the country. [Note : I am not sure where this could be going … under the US-backed financing restrictions on Iran. French banks are renigging on its planned loan for existing improvements to Iran oil fields.]
de-Baathification also has major hurdles. The formerly repressed Kurds and Shiites have concerns … and leading the charge against it is Muqtada al-Sadr. Former appointed prime minister Iyad Allawi head of The National Iraqi List (25 seats in parliament and most of its members are secular middle class Shiites),had been attempting to put together a new parliamentary bloc grouping the Islamic Virtue Party (Fadhila: Shiite fundamentalist), the Iraqi Accord Front (Sunni fundamentalist), and the National Dialogue Front (Sunni secular). If they get Muqtada al-Sadr group to join, they could call for a vote on al-Maliki coalition government. They’ve got leverage.
So, by pushing these benchmarks, America is acting as a demonic parent and not allowing the soverign nation of Iraq to rule themselves. These benchmarks only unite the Iraqis in their distaste for America.
Now, there are some benchmarks that should be pushed.
1. Further meetings with Iran.
2. Condi Rice needs to visit Syria.
These benchmarks only require America to take action. Failure to meet these benchmarks would be another failure of the Bush Administration.
UPDATE : Although the MainStreamMedia reported that the Iraqi Cabinet had approved the oil revenue plan on Tuesday, it may be DOA in the Parliament. While the Cabinet may be supporting the Prime Minister, the Parliament is different. Sunni leaders and followers of Iraqi Shiite cleric Moqtada Al Sadr seem to be joining up to reject this legislation.
AND IN OTHER NEWS, where a Government’s Cabinet may be out of step with it’s leader, the Australian media is reporting that Oil may have been a factor in Australia joining the Coalition of the Willing … or maybe not.
On Thursday,
“Prime Minister John Howard has moved to hose down Defence Minister Brendan Nelson's earlier revelation that Australian troops are remaining in Iraq partially because of concerns over global oil supplies. but less than one day later, the Defense Minister softened his tune.
Australia probably has less than 600 troops in Iraq.
OIL LAW PASSED !
"We have freedom and now we have a law that enables us to make new projects and sign new contracts for the benefit of our people," said Ashti Hawrami ,regional minister for natural resources.
EXCITING NEWS !
The law provides for the establishment of the "Kurdistan National Oil Company" in an area that many consider possessing the largest unexplored oil reserves in the world where foreign oil companies have already signed business contracts.
OH, WAIT A SECOND …
Since the Iraqi Parliament has yet to debate a national law, Iraq's largely autonomous Kurdish region passed its own oil law. link
NEVERMIND … MAYBE IT’s NOT GOOD NEWS
I guess that would be comparable to while the US Congress is debating drilling in ANWAR, the Alaska Legislature passes its own bill to sell drilling rights to oil companies.
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