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Behind the scenes, an oil imbroglio brews. (Capitol Ideas).


Is America's confrontation with Iraq really about oil?

Many times in recent months, Saddam Hussein Saddam Hussein

(born April 28, 1937, Tikrit, Iraq—died Dec. 30, 2006, Baghdad) President of Iraq (1979–2003). He joined the Ba'th Party in 1957. Following participation in a failed attempt to assassinate Iraqi Pres.
 has sought to rally support by asserting that President Bush's condemnation conceals a desire to seize Iraq's oil fields This list of oil fields includes major fields of the past and present. The list is incomplete; there are more than 40,000 oil and gas fields of all sizes in the world[1]. . Such declarations play smoothly into Arab suspicions that America is a nation of rapacious capitalists attempting to free themselves of reliance on OPEC OPEC: see Organization of Petroleum Exporting Countries.
OPEC
 in full Organization of the Petroleum Exporting Countries

Multinational organization established in 1960 to coordinate the petroleum production and export policies of its
. It's a convenient oversimplification o·ver·sim·pli·fy  
v. o·ver·sim·pli·fied, o·ver·sim·pli·fy·ing, o·ver·sim·pli·fies

v.tr.
To simplify to the point of causing misrepresentation, misconception, or error.

v.intr.
 that ignores the threat Hussein poses to his neighbors, his willful defiance of the disarmament agreement he signed at the end of the Gulf War and his continued efforts to build nuclear weapons.

But the Bush Administration does its case harm by downplaying the oil factor. Few allies are convinced that Bush would care so much about Hussein if Iraq had no oil. The Bush Administration might win more support if it described its true fears: that Hussein will use oil as a weapon, and that oil revenues are funding his quest for Verb 1. quest for - go in search of or hunt for; "pursue a hobby"
quest after, go after, pursue

look for, search, seek - try to locate or discover, or try to establish the existence of; "The police are searching for clues"; "They are searching for the
 nuclear weapons.

Such official silence complicates the politics of invasion. Those who believe the Iraq issue will be resolved by a swift "regime change" ignore the likelihood that an American victory over Iraq, whose much-coveted reserves are exceeded only by Saudi Arabia's, will embroil em·broil  
tr.v. em·broiled, em·broil·ing, em·broils
1. To involve in argument, contention, or hostile actions: "Avoid . . .
 the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  in new disputes with friends and enemies alike, especially allies who are also economic competitors.

It's almost impossible to get the Bush Administration to discuss its oil objectives publicly. But every once in a while, the topic slips out, as it did in late August when Vice President Dick Cheney briefly mentioned it in a speech laying out the case for confrontation:

"Armed with an arsenal of these weapons of terror, and seated atop 10 percent of the world's oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints.

Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally
, Hussein could then be expected to seek domination of the entire Middle East, take control of a great portion of the world's energy supplies, directly threaten America's friends throughout the region and subject the United States or any other nation to nuclear blackmail Nuclear blackmail is a form of nuclear strategy in which an aggressor uses the threat of use of nuclear weapons to force an adversary to perform some action or make some concessions. It is a type of extortion, related to brinkmanship. ."

Cheney's warning explains why White House plans for Iraq rely on two assumptions: That the United States will occupy the country for a number of years, and that reconstruction will be paid for with oil.

But who will get access to that oil? Always a politically savvy operator, Hussein spent much of the past few years signing agreements with oil companies around the world that take effect, at least in theory, when United Nations sanctions are lifted. He carefully favored companies from three of the five permanent members of the U.N. Security Council: China, Russia and France. Each has argued privately that its contract should be honored by whatever government replaces Hussein's.

With Iraq's oil rights hanging in the balance, negotiations over the country's fate resemble a grand bazaar. France's commercial interests, along with its traditional suspicions of U.S. power, could explain why it has so far resisted Bush's policy of confrontation. Turkey has long claimed rights to the Kirkuk oil fields on its border with Iraq, and if the United States wants to give Turkey an incentive to deal with Iraqi Kurds, oil could be the diplomatic tool. China is of two minds: Its economy relies on a stable supply of Middle Eastern oil, but also on U.S. foreign capital.

Russia is also nervous. It wants guarantees that the $7.6 billion it says it is owed by Iraq will be honored by an occupation government. Then there are the 300 Russian companies This is a list of companies from Russia. See List of banks in Russia for banks.

Company Industry MICEX RTS
1C Company Software - -
Acron (company) Chemicals - RTS:B>AKRN

Aeroflot Airlines MICEX:B>AFLT
RTS:B>AFLT

Alfa Group Investment - -
 doing business with Iraq under the United Nation's food-for-oil program. "If there is military action, the prospects for us in Iraq will be zero," fretted Nikolai P. Tokarev, an oil executive and member of a Russian government commission on Iraq, in The New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 Times recently. "Do Americans need us in Iraq? Of course not. Russian companies will lose the oil forever if the Americans come.

This has caused a looming problem for the United States. Competing interests between the U.S. government and its allies, enemies and oil lobbies have the makings of an ugly post-Hussein struggle.

In public, President Bush will no doubt continue to talk about Hussein as a dictator who gassed his people and is a threat to his neighbors and world peace. But sooner or later, if Hussein is successfully removed, Bush will have to begin talking about the politics of allocating Iraq's huge reserves--and come up with a strategy the world considers fair. Otherwise, he will only justify suspicions that his true goal is a bald oil grab.

David E. Sanger David E. Sanger — born on July 5, 1960 in White Plains, New York — is White House correspondent for The New York Times. A 1982 graduate of Harvard College, Sanger has been writing for The New York Times  covers the White House for The New York Times.
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Title Annotation:America on Iraq
Author:Sanger, David E.
Publication:Chief Executive (U.S.)
Geographic Code:7IRAQ
Date:Dec 1, 2002
Words:758
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