Claiming the Prize: War Escalation Aimed at Securing Iraqi Oil

By Chris Floyd, Information Clearing House. Posted January 12, 2007.

I. The Twin Engines of Bush's War

The reason that George W. Bush insists that "victory" is achievable in Iraq is not because 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 on-line. For Bush, victory is indeed at hand. It could come at any moment now, could already have been achieved by the time you read this. And the driving force behind his planned "surge" of American troops is the need to preserve those fruits of victory that are now ripening in his hand.

At any time within the next few days, the Iraqi Council of Ministers is expected to approve a new "hydrocarbon law" essentially drawn up by the Bush Administration and its U.K. lackey, the Independent on Sunday reports.

The new bill will "radically redraw the Iraqi oil industry and throw open the doors to the third-largest oil reserves in the world," say the paper, whose reporters have seen a draft of the new law. "It would allow the first large-scale operation of foreign oil companies in the country since the industry was nationalized in 1972." If the government's parliamentary majority prevails, the law should take effect in March.

As the paper notes, the law will give Exxon, BP, Shell and other carbon cronies of the White House unprecedented sweetheart deals, allowing them to pump gargantuan profits from Iraq's nominally state-owned oilfields for decades to come.

This law has been in the works since the very beginning of the invasion -- indeed, since months before the invasion, when the Bush Administration brought in Phillip Carroll, former CEO of both Shell and Fluor, the politically-wired oil servicing firm, to devise "contingency plans" for divvying up Iraq's oil after the attack.

Once the deed was done, Carroll was made head of the American "advisory committee" overseeing the oil industry of the conquered land, as Joshua Holland of Alternet.org has chronicled in two remarkable reports on the backroom maneuvering over Iraq's oil: Bush's Petro-Cartel Almost Has Iraq's Oil and The U.S. Takeover of Iraqi Oil.

According to senior Bush minions talking up the plan for what is not a surge but a long-term escalation of urban warfare that the U.S. ground commander in Iraq says will likely last for years, Bush's new "stratergery" includes "benchmarks" that the natives must meet to keep in favor with their colonial master. One of the most prominent of these is the demand that Iraq "finalize a long-delayed measure on the distribution of oil revenue." As we can see by the Independent stories quoted here, that benchmark should be done and dusted within weeks.

From those earliest days until now, throughout all the twists and turns, the blood and chaos of the occupation, the Bush Administration has kept its eye on this prize. The new law offers the barrelling buccaneers of the West a juicy set of production-sharing agreements (PSAs) that will maintain a fig leaf of Iraqi ownership of the nation's oil industry -- while letting Bush's Big Oil buddies rake off up to 75 percent of all oil profits for an indefinite period up front, until they decide that their "infrastructure investments" have been repaid. Even then, the agreements will give the Western oil majors an unheard-of 20 percent of Iraq's oil profits -- more than twice the average of standard PSAs, the Independent notes.

Of course, at the moment, the "security situation" -- i.e., the living hell of death and suffering that Bush's "war of choice" has wrought in Iraq -- prevents the Oil Barons from setting up shop in the looted fields. Hence Bush's overwhelming urge to "surge" despite the fierce opposition to his plans from Congress, the Pentagon and some members of his own party.

Bush and his inner circle, including his chief adviser, old oilman Dick Cheney, believe that a bigger dose of blood and iron in Iraq will produce a sufficient level of stability to allow the oil majors to cash in the PSA chips that more than 3,000 American soldiers have purchased for them with their lives.

The American "surge" will be blended into the new draconian effort announced over the weekend by Iraqi Prime Minister Nouri al-Maliki: an all-out war by the government's Shiite militia-riddled "security forces" on Sunni enclaves in Baghdad, as the Washington Post reports.

American troops will "support" the "pacification effort" with what Maliki says calls "house-to-house" sweeps of Sunni areas. There is of course another phrase for this kind of operation: "ethnic cleansing."

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Chris Floyd is an American journalist. He is the author of the book, Empire Burlesque: The Secret History of the Bush Regime. He has been a writer and editor for more than 20 years, working in the United States, Great Britain and Russia for various newspapers, magazines, the U.S. government and Oxford University.

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