Chomsky: Bush & Cheney Always Saw Iraq as a Sweetheart Oil Deal

The deal just taking shape between Iraq's Oil Ministry and four Western oil companies raises critical questions about the nature of the U.S. invasion and occupation of Iraq -- questions that should certainly be addressed by presidential candidates and seriously discussed in the United States, and of course in occupied Iraq, where it appears that the population has little if any role in determining the future of its country.

Negotiations are under way for Exxon Mobil, Shell, Total and BP -- the original partners decades ago in the Iraq Petroleum Company, now joined by Chevron and other smaller oil companies -- to renew the oil concession they lost to nationalization during the years when the oil producers took over their own resources. The no-bid contracts, apparently written by the oil corporations with the help of U.S. officials, prevailed over offers from more than 40 other companies, including companies in China, India and Russia.

"There was suspicion among many in the Arab world and among parts of the American public that the United States had gone to war in Iraq precisely to secure the oil wealth these contracts seek to extract," Andrew E. Kramer wrote in the New York Times.

Kramer's reference to "suspicion" is an understatement. Furthermore, it is highly likely that the military occupation has taken the initiative in restoring the hated Iraq Petroleum Company, which, as Seamus Milne writes in the U.K. Guardian, was imposed under British rule to "dine off Iraq's wealth in a famously exploitative deal."

Later reports speak of delays in the bidding. Much is happening in secrecy, and it would be no surprise if new scandals emerge.

The demand could hardly be more intense. Iraq contains perhaps the second-largest oil reserves in the world, which are, furthermore, very cheap to extract: no permafrost or tar sands or deep-sea drilling. For U.S. planners, it is imperative that Iraq remain under U.S. control, to the extent possible, as an obedient client state that will also house major U.S. military bases, right at the heart of the world's major energy reserves.

That these were the primary goals of the invasion was always clear enough through the haze of successive pretexts: weapons of mass destruction, Saddam Hussein's links with al Qaeda, democracy promotion and the war against terrorism, which, as predicted, sharply increased as a result of the invasion.

Last November, the guiding concerns were made explicit when President Bush and Iraq's prime minister, Nouri al-Maliki, signed a "Declaration of Principles," ignoring the U.S. Congress, the Iraqi parliament and the populations of the two countries.

The declaration left open the possibility of an indefinite long-term U.S. military presence in Iraq that would presumably include the huge air bases now being built around the country, and the "embassy" in Baghdad, a city within a city, unlike any embassy in the world. These are not being constructed to be abandoned.

The declaration also had a remarkably brazen statement about exploiting the resources of Iraq. It said that the economy of Iraq -- which means its oil resources -- must be open to foreign investment, "especially American investments." That comes close to a pronouncement that we invaded you so that we can control your country and have privileged access to your resources.

The seriousness of this commitment was underscored in January, when Bush issued a "signing statement" declaring that he would reject any congressional legislation that restricted funding "to establish any military installation or base for the purpose of providing for the permanent stationing of United States Armed Forces in Iraq" or "to exercise United States control of the oil resources of Iraq."

Extensive resort to "signing statements" to expand executive power is yet another Bush innovation, condemned by the American Bar Association as "contrary to the rule of law and our constitutional separation of powers." To no avail.