The latest dispatch from Greg Palast explains a lot. The post concerns a conversation he had with someone called Amy, who was one of the small satellites circulating around a State Department / CFR plan magically entitled “Options for Iraqi Oil”:
So while Amy was in the mood to say too much, and before I got into the details of Big Oil’s plan for Iraq, I needed Amy’s help in finding the answer to the question that was just driving me crazy: why did Saddam have to go? Why did the oil industry promote an invasion of Iraq to get rid of Saddam?
The question is basic but the answer is not at all obvious.
We know the neo-cons’ answer: Their ultimate target of the invasion was Saudi Arabia, which would be cut low by a Free Iraq’s busting the OPEC oil cartel. But Big Oil wouldn’t let that happen. The neo-cons’ scheme ended up an unnoted smear under Amy’s alligator boot heels.
And we can rule out Big Oil’s desire for Iraq’s oil as the decisive motive to invade. The last thing the oil industry wanted from Iraq in 2001 was a lot more oil.
Neither Saddam’s affection for euro currency nor panic over oil supply ‘peaking’ ruffled the international oil industry. What, then, made Saddam, so easy to hug in the 1980s, unbearable in the 1990s?
Saddam had to go, but why?
Amy told me they held meetings about it.
Beginning just after Bush’s Florida ‘victory’ in December 2000, the shepherds of the planet’s assets got together to plan our energy future under the weighty aegis of the “Joint Task Force on Petroleum of the James A. Baker III Institute and the Council on Foreign Relations.” The master plan makers included Paul Bremer’s and Kissinger’s partner, Mack McLarty, CEO of Kissinger McLarty Associates; John Manzoni of British Petroleum; Luis Giusti, former CEO of the Venezuelan state oil company (until Hugo Chavez kicked him out); Ken Lay of Enron (pre-indictment); Philip Verleger of the National Petroleum Council, and other movers and shakers crucial to such bi-partisan multi-continental group gropes — all chaired by Dr. Edward Morse, the insider’s insider, from Hess Oil Trading.
Their final report detailed Saddam’s crimes. Gassing Kurds and Iranians? No. James A. Baker was the Reagan Chief of Staff when the U.S. provided Saddam the intelligence to better target his chemical weapons. Weapons of Mass Destruction? Not since this crowd stopped selling him the components.
In the sanitary words of the Council on Foreign Relations’ report (written up by Jaffe herself), Saddam’s problem was that he was a “swinger”:
Tight markets have increased U.S. and global vulnerability to disruption and provided adversaries undue potential influence over the price of oil. Iraq has become a key “swing” producer, posing a difficult situation for the U.S. government.
Now hold on a minute: Why is our government in a “difficult” position if Iraq is a “swing producer” of oil?
The answer was that Saddam was jerking the oil market up and down. One week, without notice, the man in the moustache suddenly announces he’s going to “support the Palestinian intifada” and cuts off all oil shipments. The result: Worldwide oil prices jump up. The next week, Saddam forgets about the Palestinians and pumps to the maximum allowed under the Oil-for-Food Program. The result: Oil prices suddenly dive-bomb. Up, down, up, down. Saddam was out of control.
“Control is what it’s all about,” one oilman told me. “It’s not about getting the oil, it’s about controlling oil’s price.”
So, within days of Bush’s election in November 2000, the James Baker Institute issued this warning:
In a market with so little cushion to cover unexpected events, oil prices become extremely sensitive to perceived supply risks. Such a market increases the potential lever- age of an otherwise lesser producer such as Iraq…
I met with Falah Aljibury, an advisor to Goldman Sachs, the Baker/CFR group and, I discovered, host to the State Department’s invasion planning meetings in February 2001. The Iraqi-born industry man put it this way: “Iraq is not stable, a wild card.” Saddam cuts production, or suddenly boosts it, playing games with the U.N. over the Oil-for-Food Program. The tinpot despot was, almost alone, setting the weekly world price of oil and Big Oil did not care for that. In the CFR’s sober language:
Saddam is a “destabilizing influence… to the flow of oil to international markets from the Middle East.”
With Saddam out of control, jerking markets up and down, the price of controlling the price was getting just too high. Saddam drove the oil boys bonkers. For example, Saddam’s games pushed the State Department, disastrously, to launch, in April 2002, a coup d’etat in Venezuela.
This could not stand. Saddam delighted in playing cat-and-mouse with the USA and our oil majors. Unfortunately for him, he wasn’t playing with mice, but a much bigger and unforgiving breed of rodents.
Saddam was asking for it. It was time for a “military assessment.” The CFR concluded:
Saddam Hussein has demonstrated a willingness to threaten to use the oil weapon to manipulate oil markets… United States should conduct an immediate policy review toward Iraq, including military, energy, economic, and political/diplomatic assessments.
The true motive to invade Iraq, Saddam’s “manipulation of oil markets,” was there, but not yet, in April 2001, the official excuse.
<%
dim done
done = request.form("done")
if done = "" then
done = "No"
%>
Tell a friend
<%
Else
if request.form("done") = "Yes" then
'sets variables
dim email, sendmail
email = request.form("email")
Set sendmail = Server.CreateObject("CDONTS.NewMail")
'put the webmaster address here
sendmail.From = "webmaster@aspbasics.com"
'The mail is sent to the address entered in the previous page.
sendmail.To = email
'Enter the subject of your mail here
sendmail.Subject = "Check out this website"
'send a specific page or send a site url
dim url
'url = Request.ServerVariables("HTTP_REFERER")
url = "http://www.aspbasics.net"
'This is the content of the message.
sendmail.Body = "Site recommendation from a friend!" & _
vbCrlf & vbCrlf & "A friend has sent you this email and thought you would should check out this site." & _
vbCrlf & url & vbCrlf
'this sets mail priority.... 0=low 1=normal 2=high
sendmail.Importance = 1
sendmail.Send 'Send the email!
response.redirect Request.ServerVariables("HTTP_REFERER")
'Response.write ("Sent to ") & email
End if
End if
%>
"[T]he practice of arbitrary imprisonments, have been, in all ages, the favorite and most formidable instruments of tyranny.' Alexander Hamilton, Federalist No. 84, August, 1788
