To: بحبك يا فلسطين 
From: "د. سعيد" 
Date: Tue, 5 Apr 2005 12:54:26 +0100 (BST)
Subject: Secret U.S. Plans For Iraq's Oil


Secret U.S. Plans For Iraq's Oil 

By: Greg Palast 
Reporting for BBC Newsnight 

03/17/05 - "BBC" - The Bush administration made plans for war and for Iraq's 
oil before the 9/11 attacks sparking a policy battle between neo-cons and Big 
Oil, BBC's Newsnight has revealed. 

Two years ago today - when President George Bush announced US, British and 
Allied forces would begin to bomb Baghdad - protestors claimed the US had a 
secret plan for Iraq's oil once Saddam had been conquered.

In fact there were two conflicting plans, setting off a hidden policy war 
between neo-conservatives at the Pentagon, on one side, versus a combination of 
"Big Oil" executives and US State Department "pragmatists."

"Big Oil" appears to have won. The latest plan, obtained by Newsnight from the 
US State Department was, we learned, drafted with the help of American oil 
industry consultants.

Insiders told Newsnight that planning began "within weeks" of Bush's first 
taking office in 2001, long before the September 11th attack on the US.

An Iraqi-born oil industry consultant Falah Aljibury says he took part in the 
secret meetings in California, Washington and the Middle East. He described a 
State Department plan for a forced coup d'etat.

Mr Aljibury himself told Newsnight that he interviewed potential successors to 
Saddam Hussein on behalf of the Bush administration.

Secret sell-off plan

The industry-favored plan was pushed aside by yet another secret plan, drafted 
just before the invasion in 2003, which called for the sell-off of all of 
Iraq's oil fields. The new plan, crafted by neo-conservatives intent on using 
Iraq's oil to destroy the Opec cartel through massive increases in production 
above Opec quotas.

The sell-off was given the green light in a secret meeting in London headed by 
Ahmed Chalabi shortly after the US entered Baghdad, according to Robert Ebel. 
Mr. Ebel, a former Energy and CIA oil analyst, now a fellow at the Center for 
Strategic and International Studies in Washington, flew to the London meeting, 
he told Newsnight, at the request of the State Department.

Mr Aljibury, once Ronald Reagan's "back-channel" to Saddam, claims that plans 
to sell off Iraq's oil, pushed by the US-installed Governing Council in 2003, 
helped instigate the insurgency and attacks on US and British occupying forces.

"Insurgents used this, saying, 'Look, you're losing your country, your losing 
your resources to a bunch of wealthy billionaires who want to take you over and 
make your life miserable," said Mr Aljibury from his home near San Francisco.

"We saw an increase in the bombing of oil facilities, pipelines, built on the 
premise that privatization is coming."

Privatization blocked by industry

Philip Carroll, the former CEO of Shell Oil USA who took control of Iraq's oil 
production for the US Government a month after the invasion, stalled the 
sell-off scheme.

Mr Carroll told us he made it clear to Paul Bremer, the US occupation chief who 
arrived in Iraq in May 2003, that: "There was to be no privatization of Iraqi 
oil resources or facilities while I was involved."

The chosen successor to Mr Carroll, a Conoco Oil executive, ordered up a new 
plan for a state oil company preferred by the industry.

Ari Cohen, of the neo-conservative Heritage Foundation, told Newsnight that an 
opportunity had been missed to privatize Iraq's oil fields. He advocated the 
plan as a means to help the US defeat Opec, and said America should have gone 
ahead with what he called a "no-brainer" decision.

Mr Carroll hit back, telling Newsnight, "I would agree with that statement. To 
privatize would be a no-brainer. It would only be thought about by someone with 
no brain."

New plans, obtained from the State Department by Newsnight and Harper's 
Magazine under the US Freedom of Information Act, called for creation of a 
state-owned oil company favored by the US oil industry. It was completed in 
January 2004, Harper's discovered, under the guidance of Amy Jaffe of the James 
Baker Institute in Texas. Former US Secretary of State Baker is now an 
attorney. His law firm, Baker Botts, is representing ExxonMobil and the Saudi 
Arabian government.

View segments of Iraq oil plans at www.GregPalast.com/opeconthemarch.html.

Questioned by Newsnight, Ms Jaffe said the oil industry prefers state control 
of Iraq's oil over a sell-off because it fears a repeat of Russia's energy 
privatization. In the wake of the collapse of the Soviet Union, US oil 
companies were barred from bidding for the reserves.

Jaffe said "There is no question that an American oil company ... would not be 
enthusiastic about a plan that would privatize all the assets with Iraq 
companies and they (US companies) might be left out of the transaction."

In addition, Ms. Jaffe says US oil companies are not warm to any plan that 
would undermine Opec, "They [oil companies] have to worry about the price of 
oil."

"I'm not sure that if I'm the chair of an American company, and you put me on a 
lie detector test, I would say high oil prices are bad for me or my company."

The former Shell oil boss agrees. In Houston, he told Newsnight, "Many 
neo-conservatives are people who have certain ideological beliefs about 
markets, about democracy, about this that and the other. International oil 
companies without exception are very pragmatic commercial organizations. They 
don't have a theology." 


--------------------------------------------------------------------------------
 


Greg Palast's film - the result of a joint investigation by BBC Newsnight and 
Harper's Magazine - will broadcast on Thursday, 17 March, 2005.








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