The Failed War for Oil

By Michael T. Klare, Tomdispatch.com. Posted September 23, 2005.

It has long been an article of faith among America's senior policymakers -- Democrats and Republicans alike -- that military force is an effective tool for ensuring control over foreign sources of oil.

Franklin D. Roosevelt was the first president to embrace this view, in February 1945, when he promised King Abdul Aziz of Saudi Arabia that the United States would establish a military protectorate over his country in return for privileged access to Saudi oil -- a promise that continues to govern U.S. policy today. Every president since Roosevelt has endorsed this basic proposition, and has contributed in one way or another to the buildup of American military power in the greater Persian Gulf region.

American presidents have never hesitated to use this power when deemed necessary to protect U.S. oil interests in the Gulf. When, following the Iraqi invasion of Kuwait, the first President Bush sent hundreds of thousands of U.S. troops to Saudi Arabia in August 1990, he did so with absolute confidence that the application of American military power would eventually result in the safe delivery of ever-increasing quantities of Middle Eastern oil to the United States. This presumption was clearly a critical factor in the younger Bush's decision to invade Iraq in March 2003.

Now, more than two years after that invasion, the growing Iraqi quagmire has demonstrated that the application of military force can have the very opposite effect: It can diminish -- rather than enhance -- America's access to foreign oil.

An Occupation Floating on a Sea of Oil

Oil was certainly not the only concern that prompted the American invasion of Iraq, but it weighed in heavily with many senior administration officials. This was especially true of Vice President Dick Cheney who, in an August 2002 speech to the Veterans of Foreign Wars, highlighted the need to retain control over Persian Gulf oil supplies when listing various reasons for toppling Saddam Hussein. Nor is there any doubt that Cheney's former colleagues in the oil industry viewed Iraq's oilfields with covetous eyes. "For any oil company," one oil executive told the New York Times in February 2003, "being in Iraq is like being a kid in F.A.O. Schwarz." Likewise oil was a factor in the pre-war thinking of many key neoconservatives who argued that Iraqi oilfields -- once under U.S. control -- would cripple OPEC and thereby weaken the Arab states facing Israel.

Still, for some U.S. policymakers, other factors were preeminent, especially the urge to demonstrate the efficacy of the Bush Doctrine, the precept that preventive war is a practical and legitimate response to possible weapons-of-mass-destruction ambitions on the part of potential adversaries. Whatever the primacy of their ultimate objectives, these leaders shared one basic assumption: that, when occupied by American forces, Iraq would pump ever increasing amounts of petroleum from its vast and prolific reserves.

This sense of optimism about Iraq's future oil output was palpable in Washington in the months leading up to the invasion. In its periodic reports on Iraqi petroleum, the Department of Energy (DoE), for example, confidently reported in late 2002 that, with sufficient outside investment, Iraq could quickly double its production from the then-daily level of 2.5 million barrels to 5 million barrels or more. At the State Department, the Future of Iraq Project set up a Working Group on Oil and Energy to plan the privatization of Iraqi oil assets and the rapid introduction of Western capital and expertise into the local industry. Meanwhile, Iraqi exile Ahmed Chalabi -- then the Pentagon's favored candidate to replace Saddam Hussein as suzerain of Iraq (and now Iraq's Deputy Prime Minister in charge of energy infrastructure) -- met with top executives of the major U.S. oil companies and promised them a significant role in developing Iraq's vast petroleum reserves. "American companies will have a big shot at Iraqi oil," he insisted in September 2002.

Aside from the purely pecuniary benefits of seizing Iraqi oil, administration officials of all persuasions saw another key attraction: once Iraqi fields were pumping oil again, the resulting revenues would essentially pay for the war and the costs of occupation. "We can afford it," White House economic adviser Larry Lindsey said of the planned U.S. invasion, because rising Iraqi oil output would invigorate the U.S. economy. "When there is regime change in Iraq, you could add three to five million barrels [per day] of production to world supply," he told the Wall Street Journal in September 2002. Hence, "successful prosecution of the war would be good for the economy." In one of the most striking comments of this sort, Deputy Secretary of Defense Paul Wolfowitz told a congressional panel, "The oil revenue of [Iraq] could bring between 50 and 100 billion dollars over the course of the next two or three years. We're dealing with a country that could really finance its own reconstruction, and relatively soon."

Michael Klare is a professor of peace and world security studies at Hampshire College in Amherst, Mass., and the author of "Blood and Oil: The Dangers and Consequences of America's Growing Petroleum Dependency."

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