As the Bush administration stepped up its war planning, the State Department began preparations for post-invasion Iraq. Meeting four times between December 2002 and April 2003, members of the State Department's Oil and Energy Working Group mapped out Iraq's oil future. They agreed that Iraq "should be opened to international oil companies as quickly as possible after the war" and that the best method for doing so was through Production Sharing Agreements (PSAs). PSAs are considered "privatization lite" in the oil business and, as such, are the favorite of international oil companies and the worst-case scenario for oil-rich states. With PSAs, oil ownership ultimately rests with the government, but the most profitable aspects of the industry—exploration and production—are contracted to the private companies under highly favorable terms. ... When Bremer left Iraq in June 2004, he bequeathed the Bush economic agenda to two men, Ayad Allawi and Adel Abdul Mahdi, who Bremer appointed interim Prime Minister and Finance Minister, respectively. Two months later, Allawi (a former CIA asset) submitted guidelines for a new petroleum law to Iraq's Supreme Council for Oil Policy. The guidelines declared "an end to the centrally planned and state dominated Iraqi economy" and advised the "Iraqi government to disengage from running the oil sector, including management of the planned Iraq National Oil Company (INOC), and that the INOC be partly privatized in the future." Allawi's guidelines also turned all undeveloped oil and gas fields over to private international oil companies. Because only 17 of Iraq's 80 known oil fields have been developed, Allawi's proposal would put 64 percent of Iraq's oil into the hands of foreign firms. However, if a further 100 billion barrels are discovered, as is widely predicted, foreign companies could control 81 percent of Iraq's oil—or 87 percent if, as the Oil Ministry predicts, 200 billion barrels are found. ... The Bush administration and U.S. oil companies have maintained constant pressure on Iraq to pass the petroleum law. The administration appointed an advisor to the Iraqi government from Bearing Point to support completion of the law. And in July 2006, U.S. Energy Secretary Samuel Bodman announced in Baghdad that oil executives told him that their companies would not enter Iraq without passage of the new oil law. Petroleum Economist magazine later reported that U.S. oil companies considered passage of the new oil law more important than increased security when deciding whether to go into business in Iraq. The Iraq Study Group, recognizing as it did the primacy of oil in its Iraq calculations, recommended that the U.S. "assist Iraqi leaders to reorganize the national oil industry as a commercial enterprise" and "encourage investment in Iraq's oil sector by the international community and by international energy companies." Put simply, U.S. oil companies want access to as much of Iraq's oil as they can get and on the best possible terms. The fact that Iraq is a war-ravaged and occupied nation works to the companies' benefit. As a result, the companies and the Bush administration are holding U.S. troops hostage in Iraq until they get what they want. Once the companies get their lucrative contracts, they will still need protection to get to work. What better security force is there than 144,000 American troops? ... The law adopts PSAs and not only opens Iraq to private foreign companies, but permits "for the first time—local and international companies to carry out oil exploration in Iraq."So, in other words, the Iraqi government is passing a law that would allow foreign companies to control most of Iraq's oil. In [http://uprisingradio.org/home/?p=1106|an interview] with Uprising Radio the author of the above-linked article explained that foreign oil companies would get 75% of the profits from the oil and not get taxed on any of it. The reason for the Iraqi government passing this clearly harmful law? The IMF will refuse to give the country the loans they need to rebuild their country unless this law is passed. Turning down the International Monetary Fund is indeed an impossible mission for any country in desperate need of funds. OH YEAH, and isn't cool how the mainstream news isn't touching this story with a ten-thousand-foot pole?
Orignal From: IT'S THE OIL AFTER ALL
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