What Cheney Discussed With The Oil Executives in their Secret Meetings In 2001.
According To The CIA World Fact Book Iraq as of February 2006 Iraq has the fourth largest proven oil reserves in the world with 112,500,000,000 barrels. Click here. Only Saudi Arabia with 262,700,000,000 barrels; Canada with 178,900,000,000 barrels and Iran with 133,300,000,000 barrels have more oil. Of course Canada’s oil is in tar sands and very hard to extract while the Middle Eastern oil is not and is also not as contaminated with impurities. These facts makes Mid-East oil less costly to raise and refine. Also approximately ninety percent of Iraq has not been explored so no one knows exactly how much oil is there so it may be sitting on the the worlds greatest unproven reserves.
Iraq has never developed its oil fields to anywhere near their peak productivity because of the hostility,instability and the the apparent irrationality of Saddam Hussein. In fact he has excluded American, British and Dutch oil companies from developing Iraq’s oil capacity. These companies are the logical ones with the resources and technical expertise to do so. The French and Russians, Iraq’s chief arms suppliers before Gulf War II, had had some limited access to the Iraqi oil fields. However all oil companies have been reluctant to invest in Iraq because of the lack of law and order there. Iraq was a socialist state under Saddam Hussein and had a long history of instability due to the aggressions of Hussein against Iran and Kuwait along with his continual threats against all the other countries on Iraq’s borders and ethnic groups within its borders. No major oil company with the resources would commit to develop Iraq’s oil without the assurance that the safety of their investment would be subject to the rule of law and the only law in Iraq was the mercurial, unstable Hussein
It is a well-known fact, agreed upon by most experts, that the world will suffer and oil shortfall sometime in the next twenty years. Meaning that at some point the amount of oil produced per day will be less than the amount needed for consumption. Click here. (click here)
However if the Iraqi oil fields were brought to their full production capability that day would be put further into the future and the industrialized democracies would have time to develop and alternate source of energy.
If production rates do not meet consumption demands then the price of oil will either skyrocket in the market system we have now or there would have to be a rationing system. Either way some societies would have to do with less oil and the things it powers like factories, vehicles, electrical plants, hospitals, life saving medical equipment and heating. In short most things that make an advanced society livable.
So when Richard Cheney met with executives from the largest oil companies at the White House shortly after assuming office in 2001 what do you think was topic A for discussion? North Slope oil? Small potatoes because there is not much of it. Environmental protection? An irritant. Drilling on federal land? No, most it has all ready been explored and no big fields are out there.
The most likely topic was what would it take for the huge Iraqi oil fields to be explored and developed. The answer: regime change in Iraq and replacement of Saddam Hussein with a government we could do business with. That is why we are in Iraq. Libya was also a contestant for regime change but it has only a third of the reserves of Iraq. Iran has slightly larger reserves than Iraq but it also has eighty million people to deal with. Both these countries were developing their oil capacity in a rational manner anyway.
We had found out how weak Iraq was militarily in Gulf War I and the consensus in the government was that it would be a short neat war and the Iraqi people would be waiting to receive us. Then we only had to set up a western style democracy and the oil companies could buy the oil concessions they needed to keep world oil production and prices in line with demand.
The rest is history: war with Iraq over nonexistent weapons of mass destruction and the resultant debacle of the insurgency when the Sunni dominated bureaucracy that ran the country, but supported and benefited from Saddam Hussein was disenfranchised.
That’s why Bush is giving speeches weekly if not daily on how we must spread democracy to Iraq when he means we must install a government in Iraq that is stable and we can do business with like we do in Saudi Arabia. Failure to win in Iraq means the beginning of the end of the industrialized democracies.