Democrats & Liberals Archives

Oil Companies Ready to Declare Victory

President Bush is not ready to declare victory in Iraq, but big oil companies - BP, Royal Dutch Shell and ExxonMobil - are almost ready to declare victory. You see, in a few days, a law is expected to be introduced into Iraq’s parliament that will present these multinationals with contracts that will bring them 3/4 of future Iraqi oil profits. Naturally, U.S. is “encouraging” Iraqi leaders to pass this bill because it is of “great benefit to Iraq.”

Bush said we invaded Iraq for regime change, to find WMD, to build a democracy - and countless other reasons. He never spoke of oil. However, today I tripped over this article at Market Watch:

Iraq's massive oil reserves may be thrown open for large-scale exploitation by Western oil companies - which could end up grabbing up to 75% of the beleagured nation's oil profits - under a law seen coming before the Iraqi parliament within days, the Independent reported on its Web site Monday.

A draft of this controversial law, which the U.S. government has been helping to craft and has been seen by the Independent, would give oil giants such as BP PLC (BP), Royal Dutch Shell PLC (RDSA) and ExxonMobil Corp. (XOM) 30-year contracts to extract Iraqi crude and let these foreign oil companies undertake their first large-scale operations in the country since the industry was nationalized in 1972.

Yes, indeed, this is victory for Western oil companies. Yes, indeed, this is what American troops in Iraq are fighting for. Yes, indeed, this is the reason for the "surge." The "surge" is for the purpose of insuring that Iraq passes the bill, and that afterwards, it does not change its mind.

You know, Iraq might change its mind about such drastic terms whenever U.S. leaves. Bush cannot afford to let that happen, can he? This must be a "long war."

Our Democratic leader, Speaker Nancy Pelosi, has a comment about this:

In the president's proposal, one of the standards that he's setting for them to meet is that 75 percent of the oil production goes to U.S. companies. This is stunning -- 75 percent of the production goes to the U.S. Is this what our kids are over there for?

I ask you, Is this what our kids are over there for? So that they could die in order to have oil companies make outrageous profits?

Maybe Bush has produced a victory for oil companies, but for Iraq and for the U.S. our Iraq occupation is a disaster. Let's get out of Iraq!

Posted by Paul Siegel at January 10, 2007 6:14 PM
Comment #202407

Would you rather we didn’t buy the oil from Iraq?

Posted by: tomd at January 10, 2007 6:37 PM
Comment #202409

Ok…from the same article..

‘Supporters counter that the 75%-profit provision will last only until they have recouped their initial drilling costs. After that, they would collect about 20% of profits, according to industry sources in Iraq. This is still twice the industry average for such deals.
Iraq’s Deputy Prime Minister, Barham Salih, who chairs the country’s oil committee, is expected to unveil the legislation as early as Monday and the government hopes to have the law enacted by March, according to the report.

Was this unveiling of legislation 2 days ago or next week?
It’s hard to tell since this was dated Monday.

The people of Iraq have to pass this legislation.
Your article reads as if this were already a ‘done deal’.

I do not see a problem wth this.
Who are the people who kept saying, ‘So when is Iraq going to help pay for this war?’ and ‘I thought we weren’t going to have to foot the entire bill?’
So…. U.S. oil companies will(maybe) be able to help Iraq get it’s main industry up and running and make a profit.
Unless they hide their profits in offshore accounts - the U.S. gets to tax their profits.
The Dems are supposed to be taking away the tax loopholes for these same companies.

Why can’t this be a story about Iraq finding a way to pay us back for ridding them of Saddam?

Posted by: dawn at January 10, 2007 6:42 PM
Comment #202412

Paul: I posted this information of the independent side on the 7th. Some seem to think that corporate exploitation is a noble cause, well worth a few hundred thousand deaths and that our sons and daughters could not fight for a better ideal.

I can just here Bush and Cheney, The American people want us out of Iraq so, we need a reason to stay. You guys sign this agreement into law and we will send 20,000 more troops.

The oil is flowing out of Iraq now.

Posted by: jlw at January 10, 2007 7:01 PM
Comment #202416

Sounds like Pelosi would rather have that 75% of production going to China. God knows they need it, too.

Yea, that “we hate America first” crowd would probably like to see that. Anywhere except the evil old U.S.A., right, Pelosi?


Posted by: JD at January 10, 2007 7:24 PM
Comment #202423

Dawn, isn’t that just monumental arrogance? Iraq finding a way to pay you back for ridding them of Saddam? Did you know that the vast majority of Iraqis say that things are much worse now than when Saddam sat on the throne? The Majority of them believe that attacks on US forces are justified and proper. And wouldn’t you feel that way towards invaders to your country? In ridding them of Saddam, you have destroyed their country and set a storm raging which will probably end with another Saddam sitting in Baghdad. Remember, the people of Iraq did not ask you to rid them of Saddam. And if ridding them of Saddam was the goal, that was achieved three years ago.

In fact what this war was about was the US attempting to take total control of the Mid East and more particularly its resources, at the expense of the people of the Mid East. This was and is an imperial project, part of the programme for a new american century. And if Bush gets his way, Iran and Syria will also be attacked. The Neo Cons cannot abide having anyone in power in that region who is in any way opposed to their imperial project. They know nothing of the people of that region, nor do they care. They have lit the fuse of an unstable explosive that will most probably explode in their faces, and in the face of America. Time was when the US was looked up to around the world, not just respected, but loved. No longer. The world sees the US for what it is now, a vicious rogue state set upon world domination for its own selfish ends, or perhaps more especially, the ends of the US elite and the TNC’s. Its almost as absurd as the cliched villian in a James Bond movie. And just as surely, his schemes will be defeated. People around the world are not stupid, nor are they cowards who will run from the imperium. Less than 25 millions Iraqis, in fact much less when you exclude the Kurds, and the US can’t pacify them, for all your military power. And the same lies and delusions will be pedalled about how the Iranians will overthrow the Mullahs when the US attacks. Of course Iranians have a grreat love of the US, who toppled their elected government and gave them the much lamented Shah, and his Savak secret police, while US and British oil companies stole their resources. I predict that the Iranians will stand as one against US aggression against their country, whether carried out by the US or its proxy, Israel. And if you can’ control 25 million Iraqis, how the hell are you going to control 70 million Iranians? Yep folks, get ready for the long war. The war that will deplete your treasury, and take your young men and women. Whom the Gods would destroy, they first make mad. At the end of it all, US hegemony will be fading rapidly from the world scene, and good riddance. The US has forgotten what made it great. It put an imbecile in office, underpinned by a cabal whose goals are not for the benefit of John Q Public, but of the elite who truly run the US for their own benefit. When the imbecile sought to undermine the true strength of the US, its constitution, the cheerleaders in the Houses went ra ra ra, and many others in the streets. As one of my fellow countrymen once said, ” The only thing necessary for the triumph of evil, is for good men to do nothing” (Edmund Burke) Or as another fellow countryman said, “t is the common fate of the indolent to see their rights become a prey to the active. The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt.” — John Philpot Curran: Speech upon the Right of Election, 1790. (Speeches. Dublin, 1808.) as quoted in Bartlett’s Familiar Quotations.

My friends, you have given unto yourselves a regime that may well destroy your country, and many others besides. The mid term elections in November were a clear indication that the US peoples want this war to end and their troops to come home. The Dems must listen to the people, and strip this travesty of its funding.

Posted by: Paul in Euroland at January 10, 2007 7:59 PM
Comment #202435

Friends, I just came across this interesting piece. Happy New Year.

Posted by: Paul in Euroland at January 10, 2007 9:46 PM
Comment #202439
Why can’t this be a story about Iraq finding a way to pay us back for ridding them of Saddam?

Well, you can’t make political points by doing that…

Posted by: Rhinehold at January 10, 2007 10:18 PM
Comment #202445

“Why can’t this be a story about Iraq finding a way to pay us back for ridding them of Saddam?”

The things you Republicans say can sure be good for a laugh. Sort of things that Stephen Colbert would say, except you guys actually mean them. So basically, a group of people who never invited or asked for our “help” or “liberation” need to pay up because Bush decided to invade their country, an invasion which of course has devastated their country and caused far more Iraqi deaths than Saddam could have. And people wonder why the rest of the world thinks all Americans are dumb and arrogant.

Posted by: thomas at January 10, 2007 10:53 PM
Comment #202446

Paul in Euroland, Wow great post. I would love to be able to denounce your statements and to say you have it all wrong, but that wouldn’t be truthful on my part.

Posted by: j2t2 at January 10, 2007 10:57 PM
Comment #202450

Paul in Euroland: Excellent post and I now agree with the article, we have to cut funds for the war off and get our troops out of Iraq. If we stay there, Bush and Cheney will find a way to attack Iran.

Posted by: jlw at January 10, 2007 11:23 PM
Comment #202469

Woohoo! Thanks for the heads up, Paul. This is why I bought BP stock in late 2002.

If we stay there, Bush and Cheney will find a way to attack Iran.

It’s a done deal. President Bush just said he’s starting operations against Iranians supplying Iraqis with weapons and training — most likely inside Iran, is my guess. He also mentioned sending anti-missile defenses to our allies in the region — to counter Iranian retaliation, most likely.

Good thing we’re going to have an extra 21,500 troops right next door.

Posted by: American Pundit at January 11, 2007 12:57 AM
Comment #202472

EuroPaul, I agree with the others here saying that your post was very well said, however, you wrote:

“The US has forgotten what made it great.”

No. Not all of us have forgotten what made America great, and we’re sure as hell not going quietly into the Neocon’s abyss, dammit.

“The Dems must listen to the people, and strip this travesty of its funding.”

Yes. Or the alternative: go along with Kennedy’s legislation which will require congressional approval before force levels can be increased — so they can put a stop to Bush’s escalation of the Iraq war.

Btw, I hope everyone reading this will please take a minute to glance at this article. It was written by former Reagan aide and conservative Paul Craig Roberts: The Surge: Political Cover or Escalation?

Posted by: Adrienne at January 11, 2007 1:17 AM
Comment #202499

Excellent article Paul. I think this revelation says it all. In my opinion it is conclusive proof of what a lot of us suspected all along.

Looks to me like the puppet masters are manipulating Georges strings in one last attempt to gather the wealth at our expense. It seems greed knows no boundaries and has no concience.

Posted by: ILdem at January 11, 2007 9:18 AM
Comment #202506

Dawn wrote: “Why can’t this be a story about Iraq finding a way to pay us back for ridding them of Saddam?”

Paying who back Dawn? My tax dollars went to Iraq, went to fund the war, and now the oil companies get to make a profit?? That is paying us back? Sorry, but that is not paying the taxpayers of this country back. That makes the original claims that this war was all about oil even more valid and correct. I understand and agree that if oil companies help the Iraqi’s produce oil they should make a profit, as should Iraq. But please do not call this paying us back. Not the same at all. If they want to pay us back, pay us for the cost of the war and the money we spent rebuilding their country, and pay it directly back to the US Treasury and the US taxpayer - where it cam from. Conservatives are always quick to point out that tax money is really our money. Seems now it is the Oil Industry’s money.

Posted by: SteveK at January 11, 2007 10:01 AM
Comment #202527

Gee.Surprise,surprise.Furthur,JD,bless his repugnant heart,hit the nail on the head when he mentioned keeping the oil from China. What we have is Bushco and the neo-cons playing the global domination game with China over access to energy supplies. They allow some Chinese access in exchange for cooperation with N.Korea etc. but the game goes on. We cannot afford to allow big oil to dictate our policy any longer. For example ,the reason the Iranians hate us so is directly related tp the US cia overthrowing a democratic regime and replacing it with the Shah. Why did we do that? Because their president was moving toward nationalizing the Iranian oil industry. Imagine the gall of a country wanting to control their own resorces!
For us to have a future of anything else that continued oil wars and extreme enviormental disasters big oil has to be brought under control. This is the real challenge for thoughtful Americans in the 21st century and is as revolutionary and dangerious as anything we have ever faced .

Posted by: BillS at January 11, 2007 11:28 AM
Comment #202624

There are alternatives.Please read the preceeding post. We will need them sooner or later anyway. Why not start now instead of having to buy them from Japan later?

Posted by: BillS at January 11, 2007 4:10 PM
Comment #202634

jc, the problem with resource wars, is that you can break the back of your military trying to steal them. Let’s just suppose the Chinese for example, decided that they needed some resource that was plentiful in the US. By this time of course, China is a massive power. It decides that it will stage an invasion of the US, which by this time is bankrupted and a shadow of its former self, its people riven with divisions, with widespread starvation.

Now lets suppose that you’re around to see this. I suppose you’re going to cheer on the Chinese coming to take your countrys resources? Now in this scenario, we’re assuming that the US military by this time is no match for the Chinese, who storm in in a cake walk. What would you do? Lie down and bend over? You know you’ll never have the conventional capability to oust the Chinese, so what’s the point eh? Let them have it. They need it after all, and might is right, yeah? Now maybe you would roll over to get your belly tickled, but I doubt if all of you countrymen and women would. I guess that enough of them would take to the hills with their pikes and huntin rifles and whatever they could get their hands on, and resist. Unless of course they decided that the Chinese offered a better model of society than the neo cons. Now there’s a thought!

Posted by: Paul in Euroland at January 11, 2007 4:53 PM
Comment #202760
Why can’t this be a story about Iraq finding a way to pay us back for ridding them of Saddam?

Iraqis *never asked* the US to get rid of Saddam.
Why should they pay back for something they didn’t want in the first place!?!

Beside, usually that’s the *occupant* nation is asked to pay back for the caused damage, not the occupied one.

Posted by: Philippe Houdoin at January 12, 2007 9:27 AM
Comment #202762


And people wonder why the rest of the world thinks all Americans are dumb and arrogant.

Not all.
Many. Too many, under Bush.

Posted by: Philippe Houdoin at January 12, 2007 9:35 AM
Comment #202764


For us to have a future of anything else that continued oil wars and extreme enviormental disasters big oil has to be brought under control.

Stop blaming alcool producers. Instead, drink (way) less. Stop being energy-oolic now.

Energy per capita: europeans consume 2x more than chineses. Americans consume 5x more than europeans.
It’s really time we reduce our energy waste.
It’s really time we reduce our energy needs.
Energy is not happyness. As alcool.

Posted by: Philippe Houdoin at January 12, 2007 9:46 AM
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