Iraq invasion was about oil | Nafeez Ahmed | Environment | theguardian.com.
Yesterday was the 11th anniversary of the 2003 Iraq War – yet to this day, few media reflections on the conflict accurately explore the extent to which opening up Persian Gulf energy resources to the world economy was a prime driver behind the Anglo-American invasion.
The overwhelming narrative has been one of incompetence and failure in an otherwise noble, if ill-conceived and badly managed endeavour to free Iraqis from tyranny. To be sure, the conduct of the war was indeed replete with incompetence at a colossal scale – but this doesn’t erase the very real mendacity of the cold, strategic logic that motivated the war’s US and British planners in the first place.
According to the infamous Project for a New American Century (PNAC) document endorsed by senior Bush administration officials as far back as 1997, “While the unresolved conflict with Iraq provides the immediate justification” for the US “to play a more permanent role in Gulf regional security,” “the need for a substantial American force presence in the Gulf transcends the issue of the regime of Saddam Hussein.”
So Saddam’s WMD was not really the issue – and neither was Saddam himself.
The real issue is candidly described in a 2001 report on “energy security” – commissioned by then US Vice-President Dick Cheney – published by the Council on Foreign Relations and the James Baker Institute for Public Policy. It warned of an impending global energy crisis that would increase “US and global vulnerability to disruption”, and leave the US facing “unprecedented energy price volatility.”
The main source of disruption, the report observed, is “Middle East tension“, in particular, the threat posed by Iraq. Critically, the documented illustrated that US officials had lost all faith in Saddam due his erratic and unpredictable energy export policies. In 2000, Iraq had “effectively become a swing producer, turning its taps on and off when it has felt such action was in its strategic interest to do so.” There is a “possibility that Saddam Hussein may remove Iraqi oil from the market for an extended period of time” in order to damage prices:
“Iraq remains a destabilising influence to… the flow of oil to international markets from the Middle East. Saddam Hussein has also demonstrated a willingness to threaten to use the oil weapon and to use his own export programme to manipulate oil markets. This would display his personal power, enhance his image as a pan-Arab leader… and pressure others for a lifting of economic sanctions against his regime. The United States should conduct an immediate policy review toward Iraq including military, energy, economic and political/diplomatic assessments. The United States should then develop an integrated strategy with key allies in Europe and Asia, and with key countries in the Middle East, to restate goals with respect to Iraqi policy and to restore a cohesive coalition of key allies.”
The Iraq War was only partly, however, about big profits for Anglo-American oil conglomerates – that would be a bonus (one which in the end has failed to materialise to the degree hoped for – not for want of trying though).
The real goal – as Greg Muttitt documented in his book Fuel on the Fireciting declassified Foreign Office files from 2003 onwards – was stabilising global energy supplies as a whole by ensuring the free flow of Iraqi oil to world markets – benefits to US and UK companies constituted an important but secondary goal:
“The most important strategic interest lay in expanding global energy supplies, through foreign investment, in some of the world’s largest oil reserves – in particular Iraq. This meshed neatly with the secondary aim of securing contracts for their companies. Note that the strategy documents released here tend to refer to ‘British and global energy supplies.’ British energy security is to be obtained by there being ample global supplies – it is not about the specific flow.”
To this end, as Whitehall documents obtained by the Independent show, the US and British sought to privatise Iraqi oil production with a view to allow foreign companies to takeover. Minutes of a meeting held on 12 May 2003 said:
“The future shape of the Iraqi industry will affect oil markets, and the functioning of Opec, in both of which we have a vital interest.”
A “desirable” outcome for Iraqi’s crippled oil industry, officials concluded, is:
“… an oil sector open and attractive to foreign investment, with appropriate arrangements for the exploitation of new fields.”
The documents added that “foreign companies’ involvement seems to be the only possible solution” to make Iraq a reliable oil exporter. This, however, would be “politically sensitive”, and would “require careful handling to avoid the impression that we are trying to push the Iraqis down one particular path.”
Media analyses claiming lazily that there was no planning for the aftermath of the Iraq War should look closer at the public record. The reality is that extensive plans for postwar reconstruction were pursued, but they did not consider humanitarian and societal issues of any significance, focusing instead on maintaining the authoritarian structures of Saddam’s brutal regime after his removal, while upgrading Iraq’s oil infrastructure to benefit foreign investors.
A series of news reports, for instance, confirmed how the State Department had set up 17 separate working groups to work out this post-war plan. Iraq would be “governed by a senior US military officer… with a civilian administrator”, which would “initially impose martial law”, while Iraqis would be relegated to the sidelines as “advisers” to the US administration. The US envisaged “a broad and protracted American role in managing the reconstruction of the country… with a continued role for thousands of US troops there for years to come”, in “defence of the country’s oil fields”, which would eventually be “privatised” along with “other supporting industries.”
The centrality of concerns about energy to Iraq War planning was most candidly confirmed eight years ago by a former senior British Army official in Iraq, James Ellery, currently director of British security firm and US defence contractor, Aegis.
Brigadier-General James Ellery CBE, the Foreign Office’s Senior Adviser to the Coalition Provisional Authority in Baghdad since 2003, had confirmed the critical role of Iraqi oil reserves in alleviating a “world shortage” of conventional oil. The Iraq War has helped to head off what Ellery described as “the tide of Easternisation” – a shift in global political and economic power toward China and India, to whom goes “two thirds of the Middle East’s oil.” His remarks were made as part of a presentation at the School of Oriental & African Studies (SOAS), University of London, sponsored by the Iraqi Youth Foundation, on 22nd April 2008:
“The reason that oil reached $117 a barrel last week was less to do with security of supply… than World shortage.”
He went on to emphasise the strategic significance of Iraqi petroleum fields in relation to the danger of production peaks being breached in major oil reserves around the world:
“Russia’s production has peaked at 10 million barrels per day; Africa has proved slow to yield affordable extra supplies – from Sudan and Angola for example. Thus the only near-term potential increase will be from Iraq.”
Whether Iraq began “favouring East or West” could therefore be “de-stabilising” not only “within the region but to nations far beyond which have an interest.”
“Iraq holds the key to stability in the region”, Ellery continued, due to its “relatively large, consuming population,” its being home to “the second largest reserve of oil – under exploited”, and finally its geostrategic location “on the routes between Asia, Europe, Arabia and North Africa – hence the Silk Road.”
Despite escalating instability and internal terrorism, Iraq is now swiftlyreclaiming its rank as one of the world’s fastest-growing exporters, cushioning the impact of supply outages elsewhere and thus welcomed by OPEC. Back in 2008, Ellery had confirmed Allied ambitions to “raise Iraqi’s oil production from 2.5 million bpd today to 3 million by next year and maybe ultimately 6 million barrels per day.”
Thus, the primary motive of the war – mobilising Iraqi oil production tosustain global oil flows and moderate global oil prices – has, so far, been fairly successful according to the International Energy Agency.
Eleven years on, there should be no doubt that the 2003 Iraq War was among the first major resource wars of the 21st century. It is unlikely to be the last.
Dr Nafeez Ahmed is executive director of the Institute for Policy Research & Development and author of A User’s Guide to the Crisis of Civilisation: And How to Save It among other books. Follow him on Twitter @nafeezahmed