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Thu Nov 20 2008
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Departments War in Iraq
For five years we've called it blood for oil
by David Swanson
May 16, 2007
And we've been right. The first of the five "benchmarks" in the war funding bill passed by the U.S. House of Representatives on May 10 requires Iraq to pass an oil law.
The law has long been drafted, and it opens up two-thirds of Iraq's oil to ownership by foreign corporations (widely expected to be dominated by U.S. corporations). Congress Members who voted against the bill, including Rep. Dennis Kucinich and Rep. Lynn Woolsey are speaking out against this as theft of Iraq's oil:
If that sounds familiar, it's because the peace movement has been saying it for five years. First they ignore you, then they laugh at you, then they attack you, then you win.
Oil workers in Iraq are threatening to strike over this proposed law. And the Iraqi government is listening.
We have a chance to listen too, because from June 4 to June 29, Iraqi labor leaders will be touring the United States to talk about this issue.
The labor movement in the United States is supporting our brothers and sisters in Iraq. Here's an explanation of how the draft oil law privatizes the oil: PDF. This summary was prepared by U.S. Labor Against the War.
If you prefer a cartoon video explanation, here's Jim Hightower.
Here's the actual language of the law: PDF.
Antonia Juhasz provides the following explanation of the key sections of the law:
Article 6: Creating the Iraq National Oil Company
B- Its scope of operations shall include: First: Managing and operating existing producing Fields mentioned in Annex No. 1, and both the North Oil Company and the South Oil Company are linked to it.
Article 12: State Participation
B- The Exploration and Production rights with regard to existing producing Fields are hereby given to INOC...
ANALYSIS: Articles 6 and 12 clearly state that the Iraq National Oil Company only has exclusive rights to the oil fields which are currently producing oil. Experts on Iraqi oil commonly refer to the following statistic: "Iraq has 80 known oil fields, 17 of which are currently producing oil." There is some disagreement over the exact number of producing fields and which fields they are. However, there is uniformity in the understanding that approximately 1/3 of Iraq's fields are currently producing oil and 2/3 are not. Thus, the INOC only has exclusive rights to 1/3 of Iraq's oil. The remaining 2/3 are open, under the conditions set out in the law, to private foreign corporate investment. And, the INOC is even permitted to turn over its fields to private foreign companies if it so chooses.
Article 9: Grant of Rights
A- The rights for conducting Petroleum Operations shall be granted on the basis of an Exploration and Production contract. The contract shall be entered between the Ministry (or the Regional Authority) and an Iraqi or Foreign Person, natural or legal, which has demonstrated to the Ministry or the Regional Authority the technical competence and financial capability that are adequate for the efficient conduct of Petroleum Operations according to the guidelines of the Federal Oil and Gas Council and as mentioned in Article 5C Fifth, and in accordance with the mechanisms of negotiations and contracting stated in Article 10 of this Law.
CHAPTER III: FIELD EXPLORATION AND FIELD DEVELOPMENT OPERATIONS
Article 13: Exploration and Production Contracts
A- An Exploration and Production Contract shall give the holder an exclusive right to conduct Petroleum Exploration and Production in the Contract Area.
B- Except if additional time is needed to complete the operations to assess a Discovery, the exclusive Exploration and Production right shall be granted as follows:
(NOTE from Antonia - the draft then goes on to delineate a 30-year period during which the company has exclusive exploration and production rights).
ANALYSIS: Article 9 states that the right to conduct petroleum operations in Iraq is open to both Iraqis and foreigners on an equal footing. Chapter III then delineates the rights of the "holder" of these contracts. These contracts refer to all of the oil fields not granted to the INOC. This refers to the 2/3 of known non-producing oil fields, as well as any and all fields in Iraq that have not yet been discovered. Thus, this is the provision which turns over at least 2/3 of Iraq's oil to private foreign investment.
Private foreign companies are offered the right to exclusive contracts to explore for and produce Iraq's oil with contract terms that last thirty years or more. There is no such thing as a "Exploration and Production Contract," it is not a recognized contract term. The rights delineated in this provision and previous provisions are far more commonly referred to as the rights granted under Production Sharing Agreements (PSA). The fact that the law is offering PSAs is not disputed. PSAs are the favorite contract model of international oil companies and the least favored model of oil-rich countries. Thus, while Iraq currently has a fully nationalized oil system, the result of this law, if passed, would be to open 2/3 of Iraq's oil to private foreign corporate ownership, control, and investment – in other words, privatize at least 2/3 of the oil regime.
More information is available at http://PriceOfOil.org
PLEASE SIGN THIS PETITION: http://priceofoil.org/action
PLEASE TELL THE MEDIA AND CONGRESS THAT YOU KNOW THIS WAR IS BLOOD FOR OIL.
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Don't forget to check out articles from 2007 and 2008War in Iraq
"Pentagon cover up: 15,000 or more US deaths in Iraq war?" December 17, 2007 Mike Whitney
"Iraq's million" December 6, 2007 Robert C. Koehler
"Talking with two who walk the walk" November 29, 2007 David Swanson
"Baghdad in middle America" November 15, 2007 Robert C. Koehler
"Understanding the next war money vote" November 10, 2007 David Swanson
"Jonesborough justice" October 31, 2007 David Swanson
"Ann Wright’s conscience: former colonel and diplomat against Iraq war" October 29, 2007 Seth Sandronsky
"Open letter to the government from an AWOL soldier" October 21, 2007 James Circello, Iraq Veterans Against The War
"Constitution, flag, and leaving Iraq" October 7, 2007 David Swanson
"Whistleblowers on tape" September 30, 2007 David Swanson
"Observing our government through Blackwater" September 26, 2007 David Swanson
""Funding the war is killing the troops": interrupting the empire 30 seconds at a time" September 26, 2007 Mike Ferner
"We have nothing but fear itself" September 24, 2007 David Swanson
"Sanity in tiny nibbles" September 21, 2007 Robert C. Koehler
"Can we talk? Day one of IVAW's "Truth in Recruiting" campaign" September 20, 2007 Mike Ferner
"New day in the anti-war movement?" September 19, 2007 Mike Ferner
"Bush’s fake sheik whacked: the Surge and the Al Qaeda bunny" September 18, 2007 Greg Palast
"Iraq: the people's report" September 11, 2007 Sue Udry
"Questions for General Petraeus" September 10, 2007 David Swanson
"My son, back from Iraq, lives on tower on National Mall" September 1, 2007 Mary Hanna
"Creative destruction" August 16, 2007 Robert C. Koehler
"300 towns, cities, states oppose Iraq occupation" August 1, 2007 David Swanson
"Reparations" July 30, 2007 David Swanson
"Democrats as Leviathan: another step toward war with Iran" July 23, 2007 Joshua Frank
"We will sit in for impeachment" July 5, 2007 David Swanson
"Gorilla suit" July 3, 2007 Robert C. Koehler
"Peace movement comes to US Social Forum" June 29, 2007 David Swanson
"The hearts of all sane men" June 21, 2007 Robert C. Koehler
"Belief and doubt" June 15, 2007 Robert C. Koehler
"Sen. Clinton wants troops in Iraq for at least 10 years" June 13, 2007 David Swanson
"This is not a story about Cindy Sheehan" June 5, 2007 Sunsara Taylor
"The holy occupation of Iraq" May 29, 2007 David Swanson
"Why I voted "no"" May 27, 2007 Sen. Barbara Boxer
"For five years we've called it blood for oil" May 16, 2007 David Swanson
"Collateral genocide" May 12, 2007 Mike Ferner
"Please don’t throw me in that veto patch" May 7, 2007 Mike Ferner
"Anti-U.S. uproar sweeps Italy" May 5, 2007 David Swanson
"Knee-deep blood in the land of make-believe" April 26, 2007 Carla Binion
"Tax day protests and refusing to pay for war" April 16, 2007 Ruth Benn
"You can't hurt a troop by defunding a war" April 12, 2007 David Swanson
"Iraq veterans speak in Columbus, OH 3-17-07" April 11, 2007 Veterans
"Iraq @ 4: It's Not About the Troops - Either Way " March 26, 2007 David Caploe
"Progressives stand strong against funding war" March 23, 2007 David Swanson
"No mo money for war" March 16, 2007 David Swanson
"Sacrificing our children on the altar of corporate greed" March 15, 2007 David E. Washburn
"Only nonviolence will end the war" March 14, 2007 David Swanson
"The war money can be stopped" March 10, 2007 David Swanson
"How will you end this war?" March 10, 2007 Tina Richards
"Congressman Obey says "Idiot Liberals" need to support war money" March 9, 2007 David Swanson
"Former Pentagon staff speaks out on crimes of Doug Feith, Dick Cheney, and planning of Iran War" March 6, 2007 David Swanson
"I'm more pro-troop than you are" March 3, 2007 David Swanson
"Only nonviolence will end the war" February 28, 2007 David Swanson
"Cindy Sheehan, George Will, and loving your enemies" February 26, 2007 David Swanson
"No, seriously, why did we invade Iraq?" February 22, 2007 David E. Washburn
"Lord knows we've suffered enough already: keep them out of Ohio!" February 18, 2007 Mike Ferner
"Murtha only intends to undo the escalation" February 17, 2007 David Swanson
"Shut up and stop the war" February 14, 2007 David Swanson
"100 Senators quietly vote: majority oppose escalation" February 10, 2007 David Swanson
"Dems change the gas and claim it's a new car" February 9, 2007 David Swanson
"A world that works for everybody" February 7, 2007 Robert C. Koehler
"D.C. demonstration" January 30, 2007 John Conyers, Jr.
"How we can end the occupation of Iraq" January 23, 2007 David Swanson
"Dear Mr. President: Send Even MORE Troops (and you go, too!) ...from Michael Moore" January 22, 2007 Michael Moore
"The Kucinich Plan for Iraq" January 17, 2007 Dennis J. Kucinich
"An Iraq jobs program?" January 16, 2007 Seth Sandronsky
"Waist deep in the big muddy" January 12, 2007 Greg Palast
"Out of Iraq and back to the American city" January 11, 2007 Dennis J. Kucinich
"If not now, when?" January 10, 2007 Mike Ferner
"Mr. President, surge this" January 10, 2007 David Swanson
"3,000 lights delivered to Rep. Marcy Kaptur" January 5, 2007 Northwest Ohio Peace Coalition
"3,000 lights for 3,000 killed in Iraq" January 1, 2007 Peggy Daly-Masternak
Read Articles by Year: 2007 2006 2005 2004 2003 2002 2001 2000

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