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-Caveat Lector-

Bush & Sharon: The Oil Connection
=================================

Submitted to Portside

By Conn Hallinan

On its face, President George Bush's recent endorsement
of Israeli Prime Minister Ariel Sharon's land grab in
the occupied territories makes little sense. The plan,
under which Israel would abandon Gaza while permanently
annexing most of the West Bank, has met with almost
universal condemnation.

* It has stirred rage in the Arab world, where,
according to U.S. ally Egyptian President Honsi
Mubarak, "there exists a hatred of Americans never
equaled in the region."

* European Union (EU) foreign policy spokesperson,
Brian Cowen, said that the "EU will not recognize any
change to the pre-1967 borders other than those arrived
at by agreement of the parties."

* A letter by 52 former senior British diplomats called
Prime Minister Tony Blair's support for Washington on
this issue, "one-sided and illegal," and predicted it
"will cost yet more Israeli and Palestinian blood." A
Financial Times editorial called the letter "the most
stinging rebuke ever to a British government by its
foreign policy establishment."

At a time when the U.S. is desperate for an
international bailout in Iraq, why would the White
House go out of its way to alienate allies?

The most popular explanations are:

* The influence of pro-Israeli lobbies, and a
Republican strategy to woo Jewish voters and money away
from the Democrats;

* A bow to the Bush Administration's Christian
Evangelical wing, which is rabidly pro-Israel because
it is convinced the Second Coming is upon us.

There is no question that pleasing evangelicals is an
Administration priority, and certainly Republicans
would like to cut into traditional Jewish support for
the Democrats. But this explanation assumes foreign
policy is all about partisan politics and God.

Bush certainly has the inside track with evangelicals.
However, there is virtually no difference between
Republican and Democrats on Israel. If anything, the
latter are slightly more hawkish.

There is a simpler explanation for the White House's
posture, one the Administration laid out four months
after taking office. In May, 2001, Vice-President Dick
Cheney's National Energy Policy Development Group
recommended that the President "make energy security a
priority of our trade and foreign policy."

The recommendation was hardly a bolt from the blue, and
the Republicans didn't invent the idea. The recent move
of oil companies and the U.S. military into Central
Asia is a case in point. It was President Bill Clinton,
not George W. Bush, who crafted that strategy. It was
not the Republicans who brought Halliburton and Cheney
into the Caspian region, but Clinton advisor Richard
Morningstar, now a John Kerry point man.

A flood of future Bush Administration heavies followed
in Cheney's wake. Condolezza Rice helped ChevronTexaco
nail down drilling rights for Kazakhstan's Tenez oil
fields. James Baker, who pulled off Bush's Great
Florida Election steal, helped British Petroleum get
into the area.

When it comes to oil, partisan politics stop at the
U.S. coastline. And if it is about oil, it's about the
Middle East.

Oil production in the US, Mexico and the North Sea is
declining, and a recent study by the University of
Uppsala in Sweden suggests reserves may be far smaller
than the 18 trillion barrels the industry presently
projects. If the new figure of 3.5 trillion barrels is
correct, sometime between 2010 and 2020, worldwide
production will begin to decline.

Given that most oil geologists think there are few, if
any, undiscovered resources left, that decline is
likely to be permanent.

So the price of oil---now $41.65 a barrel, a jump of
$32 since 1997---may not be a temporary spike. World
pumping capacity is going full throttle, but a
combination of economic growth, coupled with cash
shortages for investment, have kept supplies tight.
Only during the Iranian revolution and the Iran-Iraq
War did oil cost more.

With U.S. consumption projected to increase 1/3 over
the next 20 years--- two thirds of which will be
imported by 2020---the name of the game is reserves.
The bulk of those lie in the Middle East. Between Saudi
Arabia, Iraq, the United Arab Emirates and Kuwait, the
Gulf states control 65 percent of the world's reserves,
or close to 600 billion barrels. In comparison, the
U.S. reserves are a little under 23 billion.

Whoever controls these reserves essentially controls
the world's economy. Consider for a moment if the U.S.
were to use its power in the Middle East and its
growing influence in Central Asia to tighten oil
supplies to the exploding Chinese economy.

China presently uses only 8 percent of the world's oil,
accounts for 37 percent of consumption growth.

Lest anyone think this scenario is paranoid, try re-
reading President Bush's June, 2002 West Point speech
that clearly states the U.S. will not allow the
development of any "peer competitors" in the world.

That is what Cheney's Energy Policy Group meant by
making "energy security" a corner stone of US "trade
and foreign policy."

So, what does this have to do with Israel and the
occupied territories?

Israel may not have any oil, but it is the most
powerful player in the Middle East. In the great chess
game that constitutes oil politics, there are only two
pieces left on the board that might check U.S. plans to
control the Middle East's oil reserves: Syria and Iran.

And that is where Ariel Sharon comes in.

Sharon's ruling coalition has been spoiling for a fight
with Syria and Iran. The Israelis bombed Syria late
last year and leading members of the Sharon government
have routinely taken to threatening Iran.

Cabinet Minister Gideon Ezra threatened to assassinate
Damascus -based Hamas leader Khaled Meshaal, and Sharon
did the same to Hezbollah leader, Hassan Nasrallah. On
May 11, the Bush Administration levied economic
sanctions on Syria.

The Sharon government is just as belligerent about
Iran. Israeli Chief of Staff, Lt. Gen. Moshe Ya'alon
says that he hopes international pressure on Iran will
halt its development of nuclear weapons, but adds
ominously, "if that is not the case we would consider
our options."

Neoconservatives in the Bush Administration have long
targeted Iran. Richard Perle, former Defense Policy
Board member, and David Frum, of the neo-com Weekly
Standard, co-authored "An End to Evil," which calls for
the overthrow of the "terrorist mullahs of Iran."
Michael Ladeen of the influential American Enterprise
Institute argues that "Tehran is a city just waiting
for us."

According to Irish journalist, Gordon Thomas, the U.S.
has already targeted missiles on Iranian power plants
at Natanz and Arak, and one Israeli intelligence
officer told the Financial Times, "It could be a race
who pushes the button first---us or the Americans."

If Syria and/or Iran are removed from the board, the
game is checkmate.

The Americans can ill afford another war in the Middle
East, but the Israelis might be persuaded to take the
field. Is giving Sharon a free hand in the West Bank a
quid pro quo for an eventual American-supported Israeli
attack on the last two countries in the region with any
semblance of independence?

The world, of course, is not a chess game, and the
pieces don't always do what they are told.

Sharon might indeed start a war with Syria or Iran, but
not because the Israelis are spear-carriers for the
Bush Administration. The "Greater Israel" bloc has its
own strategic interests, which for the time being,
happen to coincide with American interests.

Sharon, however, is hardly a trusty ally. During the
first Gulf War, he did his best to sabotage the
coalition against Iraq, because he felt such a victory
would eventually be used to pressure Israel for
concessions in the Occupied Territories.

Nor are all Israelis on board. The recent round of
assassinations has helped revitalize the peace
movement, which put 120,000 people into the streets of
Tel Aviv May 17.

Some Israelis are unhappy about what they see the West
Bank becoming. "Sharon has pushed Washington into
embracing an accelerated process of forming the state
of Israel as a bilateral state based on apartheid,"
Meron Benvenisti, former deputy mayor of Jerusalem told
the British Guardian.

Others are uncomfortable with the support of Christian
evangelicals. According to Rabbi David Rosen,
international director of the Inter-Religious Affairs
of the American Jewish Committee's Jerusalem office,
the evangelicals support "some of the most extreme
political positions in Israeli society."

One of those "extreme positions" is a plan to raze the
Dome of the Rock Mosque in Jerusalem and rebuild the
Jewish temple destroyed by the Romans-a precondition,
Evangelicals believe, to the Second Coming.

For the time being, the American drive to control the
bulk of the world's oil reserves, and the Sharon
government's push for a greater Israel and the
elimination of regional rivals, finds common ground. On
the other hand, if Israel crosses U.S. interests, watch
how fast the lobbies and the born-agains find
themselves out in the cold.

The crisis in the Middle East is not a clash of
civilizations, less so a hijacking of American foreign
policy by the so-called "Jewish lobby" and Christian
fundamentalists: It's business as usual.

----------------------------------------------------
Conn Hallinan is an analyst for Foreign Policy in Focus
and a provost at the University of California at Santa
Cruz

_______________________________________________________

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www.ctrl.org
DECLARATION & DISCLAIMER
==========
CTRL is a discussion & informational exchange list. Proselytizing propagandic
screeds are unwelcomed. Substance—not soap-boxing—please!   These are
sordid matters and 'conspiracy theory'—with its many half-truths, mis-
directions and outright frauds—is used politically by different groups with
major and minor effects spread throughout the spectrum of time and thought.
That being said, CTRLgives no endorsement to the validity of posts, and
always suggests to readers; be wary of what you read. CTRL gives no
credence to Holocaust denial and nazi's need not apply.

Let us please be civil and as always, Caveat Lector.
========================================================================
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