Gee, what does oil have to do with it?
London Review of Books
18 October 2007
It’s the Oil
Jim Holt
Iraq is ‘unwinnable’, a ‘quagmire’, a ‘fiasco’: so goes the received opinion. But there is good reason to think that, from the Bush-Cheney perspective, it is none of these things. Indeed, the US may be ‘stuck’ precisely where Bush et al want it to be, which is why there is no ‘exit strategy’.
Iraq has 115 billion barrels of known oil reserves. That is more than five times the total in the United States. And, because of its long isolation, it is the least explored of the world’s oil-rich nations. A mere two thousand wells have been drilled across the entire country; in Texas alone there are a million. It has been estimated, by the Council on Foreign Relations, that Iraq may have a further 220 billion barrels of undiscovered oil; another study puts the figure at 300 billion. If these estimates are anywhere close to the mark, US forces are now sitting on one quarter of the world’s oil resources. The value of Iraqi oil, largely light crude with low production costs, would be of the order of $30 trillion at today’s prices. For purposes of comparison, the projected total cost of the US invasion/occupation is around $1 trillion.
www.lrb.co.uk/v29/n20/holt01_.html
Future of Iraq: The spoils of war
How the West will make a killing on Iraqi oil riches
By Danny Fortson, Andrew Murray-Watson and Tim Webb
Published: 07 January 2007
Iraq’s massive oil reserves, the third-largest in the world, are about to be thrown open for large-scale exploitation by Western oil companies under a controversial law which is expected to come before the Iraqi parliament within days.
The US government has been involved in drawing up the law, a draft of which has been seen by The Independent on Sunday. It would give big oil companies such as BP, Shell and Exxon 30-year contracts to extract Iraqi crude and allow the first large-scale operation of foreign oil interests in the country since the industry was nationalised in 1972.
The huge potential prizes for Western firms will give ammunition to critics who say the Iraq war was fought for oil. They point to statements such as one from Vice-President **** Cheney, who said in 1999, while he was still chief executive of the oil services company Halliburton, that the world would need an additional 50 million barrels of oil a day by 2010. “So where is the oil going to come from?.. The Middle East, with two-thirds of the world’s oil and the lowest cost, is still where the prize ultimately lies,” he said.
news.independent.co.uk/world/middle_east/article2132569.ece
New Oil Law Means Victory in Iraq for Bush
By Chris Floyd
t r u t h o u t | UK Correspondent
Monday 08 January 2007
The reason that George W. Bush insists that “victory” is achievable in Iraq is not that he is deluded or isolated or ignorant or detached from reality or ill-advised. No, it’s that his definition of “victory” is different from those bruited about in his own rhetoric and in the ever-earnest disquisitions of the chattering classes in print and online. …
Bush and his cohorts don’t really care what happens on the ground in Iraq - they care about what comes out of the ground. The end - profit and dominion - justifies any means. What happens to the human beings caught up in the war is of no ultimate importance; the game is worth any number of broken candles.
And in plain point of fact, the Bush-Cheney faction - and the elite interests they represent - has already won the war in Iraq. …
Put simply, the Bush Family and their allies and cronies represent the confluence of three long-established power factions in the American elite: oil, arms and investments. These groups equate their own interests, their own wealth and privilege, with the interests of the nation - indeed, the world - as a whole. And they pursue these interests with every weapon at their command, including war, torture, deceit and corruption. Democracy means nothing to them - not even in their own country, as we saw in the 2000 election. Laws are just whips to keep the common herd in line; they don’t apply to the elite, as Bush’s own lawyers and minions have openly asserted in the memos, signing statements, court cases and presidential decrees asserting the “inherent power” of the “unitary executive” to override any law he pleases.
The Iraq war has been immensely profitable for these Bush-linked power factions (and their tributary industries, such as construction); billions of dollars in public money have already poured into their coffers. Halliburton has been catapulted from the edge of bankruptcy to the heights of no-bid, open-ended, guaranteed profit. The Carlyle Group is gorging on war contracts. Individual Bush family members are making out like bandits from war-related investments, while dozens of Bush minions - like Richard Perle, James Woolsey, and Joe Allbaugh - have cashed in their insider chips for blood money.
The aftermath of the war promises equal if not greater riches. Even if the new Iraqi government maintains nominal state control of its oil industry, there are still untold billions to be made in PSAs for drilling, refining, distributing, servicing and securing oilfields and pipelines. Likewise, the new Iraqi military and police forces will require billions more in weapons, equipment and training, bought from the US arms industry - and from the fast-expanding “private security” industry, the politically hard-wired mercenary forces that are the power elite’s latest lucrative spin-off. And as with Saudi Arabia, oil money from the new Iraq will pump untold billions into American banks and investment houses.
For even in the worst-case scenario, if the Americans had to pull out tomorrow, abandoning everything - their bases, their contracts, their collaborators - the Bush power factions would still come out ahead. For not only has their already-incalculable wealth been vastly augmented (with any potential losses indemnified by US taxpayers), but their deeply-entrenched sway over American society has also increased by several magnitudes. No matter which party controls the government, the militarization of America is so far gone now it’s impossible to imagine any major rollback in the gargantuan US war machine - 725 bases in 132 countries, annual military budgets topping $500 billion, a planned $1 trillion in new weapons systems already moving through the pipeline. Indeed, the Democratic “opposition” has promised to expand the military.
Nor will either party conceivably challenge the dominance of the energy behemoths - or stand against the American public’s demand for cheap gas, big vehicles, and unlimited consumption of a vast disproportion of the world’s oil. As for Wall Street - both parties have long been the eager courtesans of the investment elite, dispatching armies all over the world to protect their financial interests. The power factions whose influence has been so magnified by Bush’s war will maintain their supremacy regardless of the electoral outcome.
[By the way, to think that all of this has happened because a small band of extremist ideologues - the neo-cons - somehow “hijacked” US foreign policy to push their radical dreams of “liberating” the Middle East by force and destroying Israel’s enemies is absurd. The Bush power factions were already determined to pursue an aggressive foreign policy; they used the neo-cons and their bag of tricks - their inflated rhetoric, their conspiratorial zeal, their murky Middle East contacts, their ideology of brute force in the name of “higher” causes - as tools (and PR cover) to help bring about a long-planned war that had nothing to do with democracy or security or any coherent ideology whatsoever beyond the remorseless pursuit of wealth and power, the blind urge to be top dog.]
So Bush and his cohorts have won even if the surge fails and Iraq lapses into perpetual anarchy, or becomes an extremist religious state; they’ve won even if the whole region goes up in flames, and terrorism flares to unprecedented heights - because this will just mean more war-profiteering, more fear-profiteering. And yes, they’ve won even though they’ve lost their Congressional majority and could well lose the presidency in 2008, because war and fear will continue to fill their coffers, buying them continuing influence and power as they bide their time through another interregnum of a Democratic “centrist” - who will, at best, only nibble at the edges of the militarist state - until they are back in the saddle again. The only way they can lose the Iraq War is if they are actually arrested and imprisoned for their war crimes. And we all know that’s not going to happen.
[emphasis added]
www.truthout.org/docs_2006/010807A.shtml