Reader Posts

« previous | TPM CAFÉ READER POSTS HOME | next »

Always just out of reach

For years I was baffled as to exactly what the Bush Administration's real goal in Iraq was.  During the run up to invasion, I posted my fervent belief that it was all about the oil, stupid.  (I can't find the original entry, which would have been posted sometime around 2003, but the link takes you to a more recent blog page where I re-posted it.)

Since then, I've realized that I was right, and I was wrong -- it is all about the oil, but it's not about giving the American people access to cheap gas.   An American President who secured such access would see his approval ratings shoot through the roof, of course, and might well go down in history as one of our greatest American Presidents ever. 

On the other hand, keep the Iraqi oil off the market, as Greg Palast so ably documents has been the intention of Big Oil since 1925, and your buddies in Big Oil will doubtless reward you with billions.  Hmmmm... posterity, patriotism, national prosperity, a shining spot in the American history texts... or filthy lucre?  Lots and lots and LOTS of it?

It's obvious which choice our current Commander in Chief has made -- we ain't likely to see the Iraqi war stopped any time soon, and every minute it drags on, oil company profits continue to spiral.  Bush and Cheney may be Americans, but their true patriotic loyalty lies indisputably with Big Petroleum.   Why else do you think Cheney worked so hard to keep all his early energy policy meeting minutes privileged?

But how do you keep the Iraqi oil off the market?  Well, here's the aforementioned Greg Palast's invaluable chart detailing the answer to that query:

A History of Oil in Iraq

Suppressing It, Not Pumping It

  • 1925-28
    "Mr. 5%" sells his monopoly on Iraq's oil to British Petroleum and
    Exxon, who sign a "Red-Line Agreement" vowing not to compete by
    drilling independently in Iraq.
  • 1948 Red-Line Agreement
    ended, replaced by oil combines' "dog in the manger" strategy -- taking
    control of fields, then capping production--drilling shallow holes
    where "there was no danger of striking oil."
  • 1961 OPEC, founded the year before, places quotas on Iraq's exports equal to Iran's, locking in suppression policy.
  • 1980-88
    Iran-Iraq War. Iran destroys Basra fields. Iraq cannot meet OPEC quota.
    1991 Desert Storm. Anglo-American bombings cut production.
  • 1991-2003
    United Nations Oil embargo (zero legal exports) followed by
    Oil-for-Food Program limiting Iraqi sales to 2 million barrels a day.
  • 2003-? "Insurgents" sabotage Iraq's pipelines and infrastructure.
  • 2004
    Options for Iraqi Oil -- The secret plan adopted by U.S. State Department
    overturns Pentagon proposal to massively in crease oil production.
    State Department plan, adopted by government of occupied Iraq, limits
    state oil company to OPEC quotas.
See, the fervent liberal belief that the Bush Administration is, above all else, incompetent, is just another smoke screen by some of the most cannily able, and morally depraved, political and economic operators in the history of our country.  We haven't 'won' this war because Bush and Cheney have never wanted us to 'win' this war.  Don Rumsfield famously claimed that you 'go to war with the army you have, not the army you want', but in that case, why were brigades of highly trained military policemen who fully expected to be sent to Iraq to deal with post invasion reconstruction never actually deployed?  Weren't they part of the 'army we have'?  But a successful post-invasion stage resulting in a relatively peaceful Iraq with a fully restored industrial infrastructure was never in the cards Bush and Cheney were playing.  Why?  It's simple -- once we 'win' the war and have Iraq under control, the American people are going to expect gas prices to drop. And we can't have that.

So, we never win the war, Iraq remains in chaos, oil prices continue to ratchet upward, and greasy oil barons like Bush and Cheney continue to pocket enormously inflated windfall profits from a largely artificial global petroleum shortage.

That those currently lining their pockets are war profiteers, and that the cash they're happily stuffing their pillows with is all blood money, should go without saying, but let's say it anyway.  Every cent of extra oil profit that an Exxon stockholder has socked away has been bought with the blood, toil, sweat, and tears of American soldiers and Iraqi civilians.  Every death, every disfigurement, every act of destruction, every displacement, every maiming, every rape, every act of terrorism or torture that has resulted from this war has been entirely unnecessary -- and insanely profitable, to Bush, Cheney, and the people really pulling their strings.

We The People are not without our share of the blame, either.  Very few of us would ever have protested the War in Iraq had it gone swiftly and smoothly, and resulted in U.S. gas prices plummeting back to mid-90s prices. 

It's important to understand, however, that oil was cheap in the 1990s largely due to British Petroleum's discovery and quick exploitation of the North Sea oilfields.  That discovery brought gas prices to a historic low, when adjusted for inevitable inflation, and they stayed low throughout the 90s, allowing many of us to relax and believe that the 'oil shortage' had been entirely spurious, and we could start driving monster cars, trucks, and SUVs again and keep doing so for the rest of our lives.

But insatiable oil consumption on a global scale depleted the vast mineral wealth of the North Sea oilfields in less than a decade, and it's important to understand that the even vaster resources waiting under the Iraqi sands (should anybody ever actually get to drill and pump them) are just as finite.  Even if the neo-con dream of cheap oil for everyone had been allowed to come true, the result would simply be another 90s cheap energy bubble.  We might see gas drop back to $2 or so per gallon and stay there until maybe 2015 or so... but once we sucked the Iraqi oil fields dry (as we inevitably would) we'd be right back where we are now.

In a way, Bush and Cheney have done the American people a favor, although it's an unintentional one.  By creating an ongoing field of chaos and horror in Iraq, they have guaranteed that we can never establish the kind of pro-American regime there we would need to gain access to the seductive but ultimately treacherous wealth of the Iraq oilfields.  As such, our next President will have only one of two choices -- withdraw, and commit American resources to the development and exploitation of  alternate energy sources... or continue to pour American blood and treasure directly into the pocketbooks of Big Oil.

Hillary Clinton was almost undoubtedly in the pockets of Big Energy, which is most likely why she never could bring herself to recant or apologize for her pro-invasion vote, or fully commit herself to a real, full withdrawal of American troops from Iraq.  John McCain has been frantically signaling throughout his Presidential campaign that he's for sale to not just the highest bidder, but most likely to everyone else involved in the auction who can meet his minimum asking price.  Only Senator Obama doesn't seem to have anything murky in his past that would make me believe he intends to further line the pockets of Big Petroleum with American and Iraqi blood. 

It's way past time Americans started demanding serious commitment of our tax dollars to the development of viable alternative fuels and energy technologies.  It may even be too late.  But for more of the same -- complete dependence on foreign oil that continues to become more and more expensive every day -- certainly, pull that lever for John McCain. 


Comments (8)

Great post. Palast makes a compelling case, and Bushco makes a ton of loot. Thanks for bringing this to the TPM roundtable.

avatar

I never thought it was about the oil... I thought it was about the defense contracting. Ah, well.

Are you saying that the invasion was intentionally bungled so that Iraq's oil fields would remain undeveloped, thereby inflating the cost of oil so that oil companies controlled by Bush, Cheney and controlling Hillary Clinton could earn greater profits? In the realm of whacked out conspiracy theories, I'd say this is near the top. And how do you square that with the news today that the so-called sovereign Iraqi government will be giving contracts to develop Iraq's oilfields to four Western oil companies?

avatar

I think it was not so much an intentional bungling as an understanding that there were 3 options: someone else sells Iraq's oil (not good), my friends and I sell Iraq's oil (very good) and nobody sells Iraq's oil but my friends and I technically own it and will be able to sell it eventually (tricky but not bad).

See, either option 2 or 3 is ok if you are an oil guy. In fact, option 3 might be slightly better because you're saving that oil to sell later, if it weren't for the political inconveniences like dead Americans and a 25% approval rating.

The bungle was the number of dead Americans--I don't think the NeoCons counted on the size of the insurgency, they thought Iraq would return to manageabley chaotic obscurity after a quick takeover. Instead, they got stuck with having to heavily promote "Democracy" (TM) which has been a mixed bag.

Way back, somebody wrote that eventually, the NeoCons would happily sacrifice GWB and create an artificial cleansing in order to go back underground and hold onto their original goals of control over a large portion of the world's oil supply and a more or less indefinite presence in this part of the middle east.

Is it more likely that all these smart guys just sort of forgot how to properly wage a war? Or did they intentionally throw every plan ever written before invading Iraq to make it an intentional clusterfuck. All evidence points to the later and government clusterfucks tend to make unscrupulous people a lot of money.

Sorry, but I find that notion ludicrous.
Chacun a son gout.

avatar

I've got a friend who always says "there are no accidents." I don't agree with this as a general rule, but in some cases it seems to apply.

I find your post especially interesting, for two reasons.

First, because I had very similar thoughts come over me after attending a talk (post invasion of Iraq)on the history of the Middle East that was given by a scholar who had grown up in Iran:

I left thinking, "okay, just a brief overview of the history in that region makes it seem crystal clear that invading Iraq would turn into a never-ending mess that will only inflame old hatreds and ancient, never-ending cycles of revenge. And just a brief overview suggests that the concepts of working together for a win-win and "compromise" seem to take second place to old hatreds in this part of the world. If with just a brief overview, it seems obvious to me that the most likely outcome in Iraq would be an absolute mess, how is it possible that the neocons and others in our government did not know the likely outcome? And if they did knew this, why did they go ahead and invade Iraq?"

Second, someone asked this scholar if anyone from the US government contacted him for guidance during the run-up to the Iraq war and he replied something like this:

"Yes, the State department contacted me and other scholars familiar with the region. They flew us in from around the world and when we got to Washington, they gave us each 15 minutes to speak. After we introduced ourselves, the time was up and they said thank you and goodbye. We had no time to impart the understanding we had thought they called us there to give."

So I think you ask important and legitimate questions in your post.

I believe Senator Obama does have some ties to big nuclear. We need practical renewable energy solutions that don't pollute, destroy the environment, or create very dangerous waste that we can't safely dispose. What will we get? I guess that will depend upon how active the American voters become.

Are you saying that the invasion was intentionally bungled so that Iraq's oil fields would remain undeveloped, thereby inflating the cost of oil so that oil companies controlled by Bush, Cheney and controlling Hillary Clinton could earn greater profits?

Yes. With links, references, citations, and graphs.

In the realm of whacked out conspiracy theories, I'd say this is near the top.

I'm not sure what your experience with 'conspiracy theories' is, but mine is pretty extensive, and I will say two things:

(a) Compared to some, this ain't nothin'

(b) simply pointing at a hypothesis and screeching "conspiracy theory!!!" does not, in and of itself, invalidate the hypothesis.

And how do you square that with the news today that the so-called sovereign Iraqi government will be giving contracts to develop Iraq's oilfields to four Western oil companies?

The 'so-called sovereign Iraqi government' can give out all the pieces of paper saying 'sure, you guys can drill for oil' that it wants to. As long as there are hundreds of thousands of people running around the landscape blowing up everything that holds still or moves slowly, it ain't gonna happen, cap'n.

Bush has made it clear that the occupation will not end while he is in office, and occupation under the current terms will never pacify Iraq to the extent needed to get drilling operations successfully underway. Under our next President, we will either have (a) more of the same or (b) some kind of troop withdrawal. More of the same won't get any oil pumped. Option (b) will most likely see the current 'sovereign' government replaced PDQ, or, if that government wants to stay in power, they will very quickly repudiate all contracts with the U.S.

On the other hand, if a miracle happens and the various oil companies named in those contracts (oddly enough, these are the modern day equivalents to those who signed off on the non development agreement back in 1926) do get the opportunity to exploit Iraq's oil, my guess is they will do so very slowly and carefully, co-operating closely to keep prices up. It's what oil companies have been doing for the last century, at least. That's not a 'conspiracy theory', that is a 'conspiracy fact'... which we writer types have a technical term for: history.

Post a Comment

Advertisement
Please disable your adblocker!
Ads are how we pay the bills!

Subscribe

The Coffee House
TPMCafe's regulars

House Brew
From Your Cafe Editor

Special Guests
Big names and big brains

Special Features
Pressing topics and trends

Table for One
An expert's week-long talk.

All Reader Posts
TPM readers discuss.

Book Club Calendar

This Week

Blood and Politics: The History of the White Nationalist Movement from the Margins to the Mainstream, Leonard Zeskind

Next Week

Henry Waxman, The Waxman Report: How Congress Really Works

July 13-17

Justin Fox, The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street

July 27-31

Plenty Enough Suck To Go Around, Cheryl Wagner

« Book Club ArchiveFull calendar »

Recent Reader Posts

All Reader Posts »





Masthead

Editor-in-Chief
Josh Marshall

Site Editor
Lila Shapiro

Intern
Versha Sharma



Subscribe to TPMCafe's feed.
Subscribe to TPMCafe's reader blog feed.

Advertise Liberally
Share
Close Social Web Email

"To" Email Address

Your Name

Your Email Address