ANTONIA JUHASZ: Yeah, absolutely. And good morning, Amy. It’s a completely radical proposal made straightforward in the Iraq Study Group report that the Iraqi national oil industry should be reorganized as a commercial enterprise. The proposal also says that, as you say, Iraq’s oil should be opened up to private foreign energy and companies. Also, another radical proposal: that all of Iraq’s oil revenues should be centralized in the central government. And the report calls for a US advisor to ensure that a new national oil law is passed in Iraq to make all of this possible and that the constitution of Iraq is amended to ensure that the central government gains control of Iraq’s oil revenues.
All told, the report calls for privatization of Iraq’s oil, turning it over to private foreign corporate hands, putting all of the oil in the hands of the central government, and essentially, I would argue, extending the war in Iraq to ensure that US oil companies get what the Bush administration went in there for: control and greater access to Iraq's oil.
AMY GOODMAN: Antonia Juhasz, let’s talk about the members of this Iraq Study Group. That might explain what their approach has been, particularly James Baker, the former Secretary of State, and also Lawrence Eagleburger. Talk about the two of them.
ANTONIA JUHASZ: Both Baker and Eagleburger have spent their careers doing one of two things: working for the federal government or working in private enterprise taking advantage of the work that they did for the federal government. So, in particular, in this case, both Baker and Eagleburger were key participants throughout the ’80s and early 1990s of radically expanding US economic engagement with Saddam Hussein, with a very clear objective of gaining greater access for US corporations, particularly oil corporations, to Iraq's oil, and doing everything that they could to expand that access.
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Now, these two members of the Iraq Study Group are joined by two additional members who are representatives of the Heritage Foundation, and the Heritage Foundation is one of the few US organizations that point-blank called for full privatization of Iraq's oil sector prior to the invasion of Iraq, as a stated goal of the invasion. And to call point-blank for full privatization, as I said, is truly radical. It’s actually a shift for the Bush administration, which has for the past about two years been working on a more sort of privatization-lite agenda, putting forward what are called production-sharing agreements in Iraq that would have the same outcome of privatization without calling it privatization.
http://www.democracynow.org/article.pl?sid=06/12/07/1452236Recommendation 63:
"Long Term Expanding oil production in Iraq over the long term will require creating corporate structures, establishing management systems, and installing competent managers to plan and oversee an ambitious list of major oil-field investment projects. To improve oil-sector performance, the Study Group puts forward the following recommendations.
RECOMMENDATION 63:
• The United States should encourage investment in Iraq’s oil sector by the international community and by international energy companies.
• The United States should assist Iraqi leaders to reorganize the national oil industry as a commercial enterprise, in order to enhance efficiency, transparency, and accountability.
• To combat corruption, the U.S. government should urge the Iraqi government to post all oil contracts, volumes, and prices on the Web so that Iraqis and outside observers can track exports and export revenues.
• The United States should support the World Bank’s efforts to ensure that best practices are used in contracting. This support involves providing Iraqi officials with contracting templates and training them in contracting, auditing, and reviewing audits.
• The United States should provide technical assistance to the Ministry of Oil for enhancing maintenance, improving the payments process, managing cash flows, contracting and auditing, and updating professional training programs for management and technical personnel."