Hard to Deny: Iraq Is All About the Oil

From TomDispatch, via AlterNet:


Hard to Deny: Iraq Is All About the Oil

By Michael Schwartz, Tomdispatch.com. Posted May 8, 2007.



How the U.S. is working to secure Iraq's oil -- one of the most important sources of petrochemical energy on the planet -- and how the Iraqis are resisting.

The following is a story by Michael Schwartz with an introduction by Tom Engelhardt.

In the run-up to the invasion of Iraq in 2002-2003, oil was seldom mentioned. Yes, Deputy Secretary of Defense Paul Wolfowitz did describe the country as afloat "on a sea of oil" (which might fund any American war and reconstruction program there); and, yes, on rare occasions, the President did speak reverentially of preserving "the patrimony of the people of Iraq" -- by which he meant not cuneiform tablets or ancient statues in the National Museum in Baghdad, but the country's vast oil reserves, known and suspected. And yes, oil did make it prominently onto the signs of war protestors at home and abroad.

Everybody who was anybody in Washington and the media, not to speak of the punditocracy and think-tank-ocracy of our nation knew, however, that those bobbing signs among the millions of antiwar demonstrators that said "No Blood for Oil" were just so simplistic, if not utterly simpleminded. Oil news, as was only proper, was generally relegated to the business pages of our papers, or even more properly -- since it was at best but one modest factor among so very many in Bush administration calculations -- roundly ignored.

Admittedly, the first "reconstruction" contract the administration issued was to Halliburton to rescue that country's "patrimony," its oil fields, from potential self-destruction during the invasion, and the key instructions -- possibly just about the only instructions -- issued to U.S. troops after taking Baghdad were to guard the Oil Ministry. Then again, everyone knew this crew had their idiosyncrasies.

Ever since, oil has played a remarkably small part in the consideration of, coverage of, or retrospective assessments of the invasion, occupation, and war in Iraq (unless you lived on the Internet). To give but a single example, the index to Thomas E. Ricks' almost 500-page bestseller, Fiasco: The American Military Adventure in Iraq, has but a single relevant entry: "oil exports and postwar reconstruction, Wolfowitz on, 98."

Yet today, every leading politician of either party is strangely convinced that the key "benchmark" the government of Prime Minister Nouri al-Maliki must pass to prove its mettle is the onerous oil law, now stalled in Parliament, that has been forced upon it by the Bush administration. In the piece below, Tomdispatch regular Michael Schwartz follows the oil slicks deep into the Gulf of Catastrophe in Iraq. He offers a sweeping view of the role oil, the prize of prizes in Iraq, has played in Bush administration considerations and what role the new oil law is likely to play in that country's future. -- Tom Engelhardt

***

The struggle over Iraqi oil has been going on for a long, long time. One could date it back to 1980 when President Jimmy Carter -- before his Habitat for Humanity days -- declared that Persian Gulf oil was "vital" to American national interests. So vital was it, he announced, that the U.S. would use "any means necessary, including military force" to sustain access to it. Soon afterwards, he announced the creation of a Rapid Deployment Joint Task Force, a new military command structure that would eventually develop into United States Central Command (Centcom) and give future presidents the ability to intervene relatively quickly and massively in the region.

Or we could date it all the way back to World War II, when British officials declared Middle Eastern oil "a vital prize for any power interested in world influence or domination," and U.S. officials seconded the thought, calling it "a stupendous source of strategic power and one of the greatest material prizes in world history."

The date when the struggle for Iraqi oil began is less critical than our ability to trace the ever growing willingness to use "any means necessary" to control such a "vital prize" into the present. We know, for example, that, before and after he ascended to the Vice-Presidency, Dick Cheney has had his eye squarely on the prize. In 1999, for example, he told the Institute of Petroleum Engineers that, when it came to satisfying the exploding demand for oil, "the Middle East, with two thirds of the world's oil and the lowest cost, is still where the prize ultimately lies."

The mysterious Energy Task Force he headed on taking office in 2001 eschewed conservation or developing alternative sources as the main response to any impending energy crisis, preferring instead to make the Middle East "a primary focus of U.S. international energy policy." As part of this focus, the Task Force recommended that the administration put its energy, so to speak, into convincing Middle Eastern countries "to open up areas of their energy sectors to foreign investment" -- in other words, into a policy of reversing 25 years of state control over the petroleum industry in the region.

...(snip)...

The Initial Campaign to Capture Iraqi Oil

With all this history, the particular way the U.S. sprang into action as soon as its forces arrived in Baghdad was hardly surprising. While American troops simply stood by as unrestrained looting severely damaged the dawn-of-civilization treasures in the National Museum, compromised the ability of hospitals to deliver health care, and destroyed many government offices, large numbers of American soldiers were deployed to protect the Oil Ministry and its associated holdings. This effort was certainly emblematic of the newly established occupation's priorities.

Not long after President Bush declared "major combat operations in Iraq have ended" under a "Mission Accomplished" banner on the deck of the aircraft carrier, the USS Abraham Lincoln, Paul Bremer, the new head of the American occupation, promulgated a series of laws designed, among other things, to kick-start the development of Iraqi oil. In addition to attempting to transfer management of existing oil facilities (well heads, refineries, pipelines, and shipping) to multinational corporations, he also set about creating an oil-policy framework, unique in the region, that would allow the major companies to develop the country's proven reserves and even to begin drilling new wells.

All these plans were, however, quickly frustrated, both by the growing Sunni insurgency and by civil resistance. Iraq's oil workers quickly unionized -- even though Bremer extended Saddam's prohibition on unions in state-owned companies -- and effectively resisted the transfer of management duties to foreign companies.

In one noteworthy moment, the oil workers actually refused to take orders from Bechtel officials in the oil hub of Basra, thus preserving their own jobs as well as the right of the Iraqi state-owned Southern Oil Company to continue to control the operation in that region. Bechtel's management contract was subsequently voided.

...(snip)...

If the oil workers and their union allies decide to organize protests or strikes, they are likely to have the Iraqi public on their side. Fully three-quarters of Iraqis believe that the United States invaded in order to gain control of Iraqi oil, and most observers believe they will surely agree with the oil workers that this law is a vehicle for that control. Even Iyad Allawi has now publicly taken a stand opposing it, perhaps the best indication that opposition will be virtually unanimous.

Finally -- and no small matter -- the armed resistance is also against the oil law. The Sunni insurgency underscored its opposition by assassinating Vice President Adel Abdul Mahdi, a major advocate of the pending law, on the day the bill was made public. The significance of the opposition of the Sunni insurgency is amplified by the stance of the Sadrists, the most rebellious segment of the Shia majority. Sadr spokesman Sheikh Gahaith Al Temimi warned journalist Christian Parenti that while the Sadrists would "welcome" foreign investment in oil, they would do so only "under certain conditions. We want our oil to be developed, not stolen. If a bad law were to be passed, all people of Iraq would resist it."

It seems clear that what the oil law has the power to do is substantially escalate the already unmanageable conflict in Iraq. Active opposition by the Parliament alone, or by the unions alone, or by the Sunni insurgency alone, or by the Sadrists alone might be sufficient to defeat or disable the law. The possibility that such disparate groups might find unity around this issue, mobilizing both the government bureaucracy and overwhelming public opinion to their cause, holds a much greater threat: the possibility of creating a unified force that might push beyond the oil law to a more general opposition to the American occupation. ......(more)

The complete piece is at: http://www.alternet.org/waroniraq/51572/?page=1