Slick Connections: U.S. Influence on Iraqi Oil

[NNN0LHI]

http://www.fpif.org/fpiftxt/4399


"The oil belongs to the Iraqi people. It's their asset," declared President George W. Bush in a press conference on the White House lawn in June 2006. He had just returned from a surprise visit to Baghdad, in which oil had been one of the main subjects of discussion.

"We talked about how to advise the government to best use that money for the benefit of the people," he clarified.

But by January 2007, the euphemism of "advice" had been dropped, as passage of an oil law became a "benchmark," an instruction to the Iraqi government.

Violating the very notions of freedom and democracy Bush invokes in nearly every speech on Iraq, the U.S. government has actively intervened in the restructuring of Iraq's oil industry since at least 2002. At different times, the Iraqi government has been threatened that passing the oil law was a pre-condition for partial reduction of Saddam Hussein's debts, for the provision of reconstruction funds, and even for the continued survival (through U.S. military support) of the al-Maliki government itself.

The issues could hardly be more important for Iraq. Oil accounts for more than 90% of government revenue, and is the main driver of Iraq's economy. And decisions made in the coming months will not be reversible—once contracts are signed, they will have a major bearing on Iraq's economy and politics for decades to come.

No wonder polls have shown that roughly 75% of Iraqis think one of the main reasons why the United States invaded Iraq was "to control Iraqi oil."