Let the Iraqis Eat Cake

Ted Koppel voiced the opinion of the American imperialists yesterday. We need to be in Iraq so we can steal the oil and then gave the Republicans a talking point: If we pull the troops out of Iraq "precipitously" imagine what would happen to the price of oil. There is no doubt that Iraq is not as violent as it once was, but this of course is as fragile as it could possibly be so let us find another reason to stay and that is oil. Ahah! At least the imperialists are not making up reasons anymore. Also, the Pentagon said ah fungoo to the Iraqi Prime Minster today who said he wanted a time table. The Pentagon said I don't think so.


KOPPEL: "U.S. troops are in a part of the world that produces a huge amount of oil and natural gas. We will have U.S. troops in that region for years to come, whether we want to or not. … And with the price of oil going up to a 4.5 dollars a gallon, imagine what would happen to the price of oil if we precipitously pull troops out of the Persian Gulf. It’s not going to happen."

A War About Oil: Bill Moyers

The Shock Doctrine and Iraq: No Bid Contracts for Oil Companies

Four western oil companies have been slated to steal Iraqi oil through no bid contracts (a la Halliburton). These companies were summarily thrown out of Iraq in 1972 after Saddam Hussein came to power. It is called protecting natural resources instead of handing them over to companies who have no interest in that part of the world outside of profiting from it. I am not defending Saddam Hussein's policies of genocide and his own brand of imperialism, but the transparency with which this move comes is unconscionable.

In 1972 Hussein nationalized the oil much like Hugo Chavez in Venezuela and Evo Morales in Bolivia, two men and two countries maligned by the west for no other reason than stopping the mindboggling profits of oil companies. Wonder why there are high oil prices? Because privatization is in jeopardy, pure and simple.

Now Exxon Mobil, Shell, Total and BP — the original partners in the Iraq Petroleum Company — along with Chevron and a number of smaller oil companies, are in talks with Iraq’s Oil Ministry for no-bid contracts to service Iraq’s largest fields, according to ministry officials, oil company officials and an American diplomat. The deals, expected to be announced on June 30, will lay the foundation for the first commercial work for the major companies in Iraq since the American invasion, and open a new and potentially lucrative country for their operations.

What is the Shock Doctrine? In short the theory goes as such: Corporations wait for a disaster (or orchestrate one like a coup), like Katrina, September 11th or say a preemptive war so that the economy tanks and the sharks move in. The shock of the crisis in Iraq to push through a further privatization agenda. But, the biggest crime is that politicians are in bed with the corporations and allow them to steal our oil. A case in point, the democrats, not the Republicans just passed a bill to fund the continuation of the Iraq war with no withdrawal date whatsoever. It is not just Republicans in bed with these corporations. After all the Iraq oil law was one of the benchmarks of the surge for which most democrats agreed and signed on to the Oil Law that said we should hand over Iraqi oil to western corporations.

This is not new, but a key benchmark of the surge seems to have succeeded, steal the Iraqi oil. The problem is Iraq is still a very divided country and if the people of Iraq are united on one issue it is this one. Keep the imperialists out. I cannot see this selling well with the Iraqi people and with Muqtadr Al Sadr beginning a new offensive and pulling from the elections this fall, this is not going to be pretty.

But, here is to the multinationalists and the fascists and your lack of transparency. Not only do they think we are dumb, they know it. All of us, Americans and Europeans alike. Who cares? It isn't our country. Maybe we will have $2 a gallon gas again. That is worth the price of a million dead Iraqis, huh?

Stuffed and Starved

From Democracy Now watch the author of Stuff and Starved talk about the world food crisis. Many of the myths about ethanol, biofuel and climate change policies are discussed and it is shocking what this crisis consists of the contradictions between the west and the rest of the world as well as the west and its poor.

One Person's Socialism is Another Person's Smart Economic Policy

Oh, you mean it is our oil? Not, Exxon's or Shell or Luk oil. We own the oil? Oh that is right, only in Venezuela do they think that natural resources are actually owned by the people, not by multinational corporations. Oil profits benefiting citizens? Not in America, but in Venezuela. Call it socialism, call it economic populism, I don't care, but I want it here.

Venezuela is planning a windfall tax on what it calls "excessive" profits of energy firms to allow state revenues to benefit from high oil prices:


The tax will take 50% of oil revenues above $70 per barrel, and an additional 60% of revenues over $100 per barrel, legislator Angel Rodriguez said.

He told state news agency ABN that oil firms had surpassed "reasonable levels of profitability".
The move will affect foreign oil firms operating in Venezuela such as Chevron.
Oil is currently trading above $104 per barrel.

'Excessive earnings'
The proposed tax comes months after President Hugo Chavez's nationalisation drive forced out two of the world's largest energy companies - Exxon Mobil Corp and Conoco Phillips.

Exxon is seeking $12bn in compensation from Venezuela after its oilfields were nationalised last year.

The tax will also apply to state oil company PDVSA, which now controls all of Venezuela's oilfields.

"Because of high oil prices, oil companies have excessive earnings that go beyond reasonable levels of profitability," Mr Rodriguez was quoted by Reuters as telling state news agency ABN.
"One way to distribute them to our people, who are the owners of the oil, is to create this tax."
Mr Rodriguez said the measure would get initial approval from the country's Congress this week.

Raise A Little Hell: Washington Impeachment March September 15

Now, that Alan Greenspan told us the war was about oil is it not time to get the fuck out of there? Supposedly, over 200 people were arrested yesterday. Who knows the truth though? Several thousand? I don't think so. More like hundreds of thousands.

Now Will They Believe Us?

Well, if Alan Greenspan says it - it must be true.

A Crude Awakening

If this is the first time you are hearing about Peak Oil, you are among the majority of the population. Peak Oil doesn't mean 'running out of oil', but rather 'running out of cheap and plentiful oil'. Inexpensive oil supports our very way of life, as we know it. It is crucial for our transportation, food production, economy and basically everything that we use on a daily basis. Go to a Crude Awakening for more...

It is time for all Americans to take individual responsibility for our future. Our industrial society, built on cheap and readily available oil, must be completely redesigned and overhauled … immediately. The changes ahead are going to be very difficult; and will be hardest for the ones who didn't, or wouldn't, see it coming, and didn't prepare adequately for it. Read this excellent article on "Why Peak Oil Is Probably About Now".

The Elephant in the Room

I came across this interesting article today by Anne Wright on truthout. She says the new bill to "support the troops" is nothing more than blackmail of the Iraqi parliament and confirms what this war has been about since the very beginning: Oil. I am stating the obvious here, but when it is spelled out in front of you it becomes shocking. Now, Congress is caught up in the action. No privatization of Iraqi oil, no reconstruction to rebuild the country America destroyed.

Colonel Anne Wright writes: "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.)"

She also says: "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."

This article sparked my interest so I searched and interestingly enough I found The Iraq Study Group, the vaunted group the world over, says in recommendation #63 "which calls on the U.S. to 'assist Iraqi leaders to reorganize the national oil industry as a commercial enterprise' and to 'encourage investment in Iraq's oil sector by the international community and by international energy companies.' " This recommendation would turn Iraq's nationalized oil industry into a commercial entity that could be partly or fully privatized by foreign firms.

Sound familiar? How about the Project for the New American Century? So, I continued to search. And found this on Global Policy Forum. Iraq has the second largest proven oil reserve and according to experts, new exploration will raise Iraq's production to 200+ billion barrels of high grade crude oil which is very cheap to produce. The four largest oil firms in the UK and the US have been trying to get back into Iraq (with no luck apparently) since the nationalization of Iraq's oil fields in 1972. In fact, towards the end of the Saddam era Russia, China, France (all countries who did not support the invasion) had lucrative contracts with Iraq and Saddam. But, the Iraq sanctions made the contracts inoperable.

Suddenly, since the invasion of Iraq (miraculously) everything has changed. The new Iraqi constitution in 2005 guarantees a major role for foreign companies (I forget, who helped write the constitution?) Negotiators are optimistic that contracts can be completed soon which will give foreign companies control over oil fields.

Despite this major pressure, however, the Iraqi government and the Iraqi people have not capitulated and the current Iraqi government has not passed a national oil law. Most Iraqis, and more importantly, the powerful oil workers' union do not favor denationalization. In walks the U.S. Congress abandoning benchmarks and telling Iraq no privatization, no reconstruction funds. It is so simple, yet so devious.

Support the troops means in plain English: support big oil.