In case there was ever any doubt, the British newspaper, Independent, recently obtained a leaked version of a new hydrocarbon law to be approved in the next few days by the US-installed puppet government in Iraq that hands unprecedented control of the country's vast oil reserves to US and British energy conglomerates. The law, expected to take effect in March, was written by a US consulting firm hired by the Bush Administration and radically changes the country's oil industry. According to the Independent, the law will permit "the first large-scale operation of foreign oil companies in Iraq since the industry was nationalized in 1972" and represents a major departure from other oil producing nations in the region who tightly control their industries through state-owned monopolies.
But wait. It gets better. The most significant aspect of the legislation, as reported by the World Socialist web, is the introduction of "production sharing agreements" or PSAs. Under these agreements, the state would retain formal ownership of the reserves yet offer billions in "compensation" to foreign energy firms like ExxonMobil, Chevron, and BP for investment in infrastructure and the operational costs of their drills, pipelines, and refineries. These PSAs would be fixed for an incredible 30 years, regardless of the presiding government. And there's even a provision that insists that all disputes be settled through international, rather than Iraqi, arbitration!
How's that for letting the Iraqis control their destiny?
Of course, PSAs aren't new to the oil industry. They're used in 12% of the world's oil reserves, generally in places where exploration prospects are uncertain and production costs high. But neither situation exists in Iraq where many oil fields have already been mapped or discovered and oil lies close to the surface.
The Independent continues: "Under the chapter entitled, 'Fiscal Regime,' the draft law spells out that foreign companies have no restrictions on taking their profits out of the country, and are not subject to any tax when doing this."
Steal the oil and pay nothing for it. Is that what Bush means by democracy?
The draft also states, "A Foreign Person may repatriate its exports proceeds [in accordance with the foreign exchange regulations in force at the time]" and "may freely transfer shares pertaining to any non-Iraqi partners." In other words, Iraqi oil projects can be freely sold to other foreign companies without interference from the Iraqis.
All the flag-waving in the world can't diminish the fact that this war was initiated, and continues to be waged, for this very purpose. And those who need proof beyond this legislation need only look to the items released under court order from Dick Cheney's infamous Energy Task Force meeting in 2001. Among those items were maps of Iraq's oil fields, pipelines, and refineries, and a supporting list of "Foreign Suitors for Iraqi Oilfield Contracts," which named more than 60 firms with projects under discussion with Baghdad. Small wonder Cheney thumbed his nose at the GAO when they subpoenaed his minutes.
Of course, the idea that we invaded Iraq for oil is hardly ground-breaking news. Yet, as we near what seems an imminent invasion of Iran and perhaps the start of global hostilities, I believe it bears repeating. The core of this global chess game is the unconscionable theft of foreign oil reserves. And though that's nothing new for the likes of Chevron and ExxonMobil, it's hardly a reason to send our kids into harm's way. And with another 20,000 on the way, it's even less of a reason for national pride.
Andrea Hackett is an freelance journalist, founder of the Las Vegas Dancers Alliance in Nevada, and editor of the Populist Review. She may be contacted at andreahackett@cox.net
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