Oil and Betrayal in Iraq

Alan Greenspan should know. It was oil all along. The former head of the Federal Reserve writes in his memoir, “The Age of Turbulence: Adventures in a New World,” “I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil.” Greenspan even advised Bush that “taking Saddam Hussein out was essential” to protect oil supplies.

Yes, we suspected it. In a deep sense, many of us knew it, just as those in Washington did. But now it’s in our face. Greenspan put the mother of all facts in front of our noses. And we can no longer be in denial. The US invaded Iraq for the oil.
Think about what it means for our troops and for the people of Iraq. Our troops were told, and believed because they trusted their president, they were in Iraq to protect America, to protect their families, their homes, their friends and neighbors, our democracy. But they were betrayed. Those troops fought and died and were maimed and had their marriages break up for oil company profits. An utter betrayal of our men and women in uniform and their families, a betrayal of their sacrifices, day after day, month after month, year after year – and for some, forever! Children growing up fatherless or motherless. Men and women without legs or arms or faces – for oil company profits.

And hundreds of thousands of Iraqis killed, more maimed, and millions made refugees. For oil profits.

And what profits they are! Take a look at the study of Iraqi oil contracts by Global Policy Forum, a consultant to the United Nations Security Council. Or read this editorial from The Daily Times in Pakistan.

The contracts the Bush administration has been pushing the Iraqi government to accept are not just about the distribution of oil among the Sunnis, Shiites and Kurds. The contracts call for 30-year exclusive rights for British and American oil companies, rights that cannot be revoked by future Iraqi governments. They are called “production sharing agreements” (or “PSA’s”) – a legalistic code word. The Iraqi government would technically own the oil, but could not control it; only the companies could do that. ExxonMobil and others would invest in developing the infrastructure for the oil (drilling, oil rigs, refining) and would get 75 percent of the “cost oil” profits, until they got their investment back. After that, they would own the infrastructure (paid for by oil profits), and then get 20 percent of oil profits after that (twice the usual rate). The profits are estimated to be in the hundreds of billions of dollars. And the Iraqi people would have no democratic control over their own major resource. No other Middle East country has such an arrangement.

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