What Congress Really Approved: Benchmark No. 1: Privatizing Iraq's Oil for US Companies

By Ann Wright
t r u t h o u t | Guest Contributor
Saturday 26 May 2007

On Thursday, May 24, the US Congress voted to continue the war in Iraq. The members called it "supporting the troops." I call it stealing Iraq's oil - the second largest reserves in the world. The "benchmark," or goal, the Bush administration has been working on furiously since the US invaded Iraq is privatization of Iraq's oil. Now they have Congress blackmailing the Iraqi Parliament and the Iraqi people: no privatization of Iraqi oil, no reconstruction funds.

This threat could not be clearer. If the Iraqi Parliament refuses to pass the privatization legislation, Congress will withhold US reconstruction funds that were promised to the Iraqis to rebuild what the United States has destroyed there. The privatization law, written by American oil company consultants hired by the Bush administration, would leave control with the Iraq National Oil Company for only 17 of the 80 known oil fields. The remainder (two-thirds) of known oil fields, and all yet undiscovered ones, would be up for grabs by the private oil companies of the world (but guess how many would go to United States firms - given to them by the compliant Iraqi government.)

No other nation in the Middle East has privatized its oil. Saudi Arabia, Kuwait, Bahrain and Iran give only limited usage contracts to international oil companies for one or two years. The $120 billion dollar "Support the Troops" legislation passed by Congress requires Iraq, in order to get reconstruction funds from the United States, to privatize its oil resources and put them up for long term (20- to 30-year) contracts.