Blackwater, Oil and the Colonial Enterprise

Blackwater USA’s mercenary mission in Iraq is very much in the news this week, and rightly so. The private military contractor’s war-for-profit program, which has been so brilliantly exposed by Jeremy Scahill, may finally get a measure of the official scrutiny it merits as the corporation scrambles to undo the revocation by the Iraqi government of its license to operate in that country. There will be official inquiries in Baghdad, and in Washington. The U.S. Congress might actually provide some of the oversight that is its responsibility. Perhaps, and this is a big “perhaps,” Blackwater’s “troops” could come home before the U.S. soldiers who have been forced to fight, and die, in defense of these international rent-a-cops.

But it is not the specific story of Blackwater that matters so much as the broader story of imperial excess that it illustrates.
While it is right to pay close attention to the emerging discussion about Blackwater’s wicked work in Iraq, Americans would do well to pay an equal measure of attention to the still largely submerged discussion about an Iraqi oil deal that will pay huge benefits to the Hunt Oil Company, a Texas firm closely linked to the administration. How closely? When he was running Halliburton, Cheney invited Hunt Oil Company CEO Ray Hunt to serve on the firm’s board of directors. Hunt, a “Bush Pioneer” fund raiser during in 2000 who went on to serve as

donated the tidy sum of $35 million to the Bush presidential library building fund.

The new “production sharing agreement” between Hunt Oil and the Kurdistan Regional Government puts one of the administration’s favorite firms in a position to reap immeasurable profits while undermining essential efforts to assure that Iraq’s oil revenues will be shared by all Iraqis. Hunt’s deal upsets hopes that Iraq’s mineral wealth might ultimately be a source of stability, replacing the promise of economic equity with the prospect of a black-gold rush that will only widen inequalities and heighten ethnic and regional resentments.

The Hunt deal is so sleazy — and so at odds with the stated goals of the Iraqi government and the U.S. regarding the sharing of oil revenues — that even Bush has acknowledged that U.S. embassy officials in Baghdad are deeply concerned about it. What Bush and Cheney have been slow to mention is the fact that Iraq’s oil minister, Hussain al-Shahristani, says the deal is illegal.

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