Flashback:

Oilmen don't want another Suez

Critics of US policy claim it aims to carve up Iraq's oil wealth. But, argues Anthony Sampson, oil companies fear the fallout from a new Gulf war

Anthony Sampson guardian.co.uk
Sunday 22 December 2002

While Washington hawks depict a war against Iraq as achieving security of oil supplies, Western oil companies are worried about the short-term danger and the supposed long-term benefits of intervention.

Left-wing critics in Britain depict the proposed invasion as an oil war. Former Cabinet Minister Mo Mowlam has called it a 'war to secure oil supplies' ... the fact that President George Bush and Vice-President Dick Cheney have both been enriched by oil companies raises suspicions about their motives for war.

But oil companies have had little influence on US policy-making. Most big American companies, including oil companies, do not see a war as good for business, as falling share prices indicate; while the obvious beneficiaries of war are arms companies...

European companies fear the Americans are ... using the promise of future oil supplies as leverage to ensure support for the war...

Many neo-conservatives in Washington are indicating they want the US intervention to go beyond Iraq; and to redraw the diplomatic map of the Middle East. They look to a realignment of US foreign policy, to intervene in both Iran and Saudi Arabia, ensuring both the security of American oil supplies, and the security of Israel.

Above all, they see the development of Iraqi oil as lessening US dependence on Saudi Arabia, which they see as a dangerous source of future terrorists.

The oil companies are much less confident that this escalation will protect supplies. Shell and Exxon-Mobil have made huge investments in natural gas in Saudi Arabia, which could be at risk in a confrontation with the Saudi government. All oil companies in the Middle East would face a more dangerous political climate, caught between the American-Israeli intervention and nationalists fearing reversion to a neo-colonial system.

Oil companies dread having supplies interrupted by burning oilfields, saboteurs and chaotic conditions. And any attempt to redraw the frontiers could increase the dangers in both Iran and Iraq, as rivals seek to regain territory...

When Anthony Eden invaded Egypt in 1956, with France and Israel, he claimed to be defending British interests - without consulting the oil companies which opposed the invasion. The Suez war proved a great setback for BP and Shell, which faced angry nationalist reactions throughout the Middle East, while the Americans made the most of their advantage...

Anthony Sampson is the author of 'The Seven Sisters' about the oil industry.

Full article: http://www.guardian.co.uk/world/2002/dec/22/iraq.oil

http://atheonews.blogspot.com/2008/12/big-oil-execs-were-right-about-iraq.html