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http://www.smh.com.au/articles/2002/10/06/1033538848021.html

Sydney Morning Herald
October 7, 2002 

Oil has always been top of Bush's foreign-policy
agenda 



As the United States prepares for war with Iraq, a
report commissioned early in George Bush's presidency
has surfaced, showing that the US knew it was running
out of oil and foreshadowing the possible need for
military intervention to secure supplies.

The report forecasts an end to cheap and plentiful
fuel, with the energy industry facing "the beginning
of capacity limitations".

Prepared by the influential Washington-based Council
on Foreign Relations and the James A. Baker III
Institute for Public Policy, it urged the Bush
Administration to admit "these agonising truths to the
American people".

Strategic Energy Policy Challenges for the 21st
Century, written early last year, was a policy
document used to shape the new administration's energy
policy.

It applauded the creation of Vice-President Dick
Cheney's energy task force to address the creation of
specific energy plans, and suggested it consider
including representation from the Department of
Defence.


Saying "there is no alternative" and "there is no time
to waste", the document projects periods of exploding
US energy prices, economic recession and social unrest
unless answers are found. 

It suggests that a minimum three to five years is
needed to find a solution, and says a "reassessment of
the role of energy in American foreign policy" is
called for, with access to oil repeatedly cited as a
"security imperative".

The involvement of the Council of Foreign Relations in
the report's preparation adds weight to its findings.
The council ranks as one of the most influential
groups in US political circles, with members including
Mr Cheney and the former secretaries of state Henry
Kissinger and James Baker.

The report also explodes the myth that the US is
insulated from Middle East oil supply problems because
it receives the bulk of its oil from less volatile
sources outside the Persian Gulf. It says Middle East
pricing and supply trends "will affect energy costs
around the globe regardless".

It details an alternative basis for the US "war on
terrorism", as well as the apparent basis for much of
the Bush Administration's present foreign policy, its
so-called oil agenda. 

The Administration has been actively pursuing oil
issues with Venezuela, Colombia, West Africa, the
Caspian and Indonesia. And amid the pressure of UN
resolutions and Israeli-Palestinian tension, the
Secretary of State, Colin Powell, recently visited
West Africa.

Among the "immediate steps" it urged was an inquiry
into whether US policy could be changed to speed the
availability of oil from the Caspian Basin region,
supporting longstanding accusations that energy issues
shadowed the US agenda in Afghanistan.

The French authors Jean-Charles Brisard and Guillaume
Dasquie have argued that US oil interests had
persuaded the Bush Administration to block terrorism
investigations and negotiate with the Taliban, a
report by the Inter Press Service (IPS) last November
said. 

It has been said repeatedly that the US objective is
the construction of trans-Afghan pipelines allowing
access to Caspian oil and gas. According to the
authors and an article in Le Monde Diplomatique in
January, US attempts to bribe and threaten the Taliban
had preceded the September 11 attacks. Notably, the
IPS article quoted the French authors as saying that,
faced with the Taliban's refusal to co-operate, the
rationale of energy security changed into a military
one, reflecting what the report advocated as a valid
option.

Providing a footnote to the question of US military
threats, the General Accounting Office, the
investigative arm of the US Congress, has sued Mr
Cheney to obtain details of his energy task force
meetings. Environmental groups have speculated that
the suit is being fought to hide the level of
involvement the collapsed US energy giant Enron had in
the task force.

On the looming oil crisis, the report reluctantly
blames deregulation of the energy markets, a lack of a
comprehensive US energy policy and the avoidance of
oil conservation measures.

It also suggests diplomatic alternatives - but policy
since the September 11 attacks appears in keeping only
with the military intervention option. Ideas such as
defusing the Arab-Israeli conflict, an easing of Iraqi
sanctions and "reducing the restrictions on oil
investments inside Iraq" are at odds with the policies
the Administration is pursuing.

While the US now presses for "regime change" in Iraq,
more than 18 months ago the report repeatedly
emphasised its importance as an oil producer and the
need to expand Iraqi production as soon as possible to
meet projected oil shortages - shortages it said could
be avoided only through increased production or
conservation in the near-term. 

In essence, the report sees the nature of Persian Gulf
politics as a significant threat and obstacle to
increased energy supplies. Implicit in the substantive
concerns - that "Gulf allies are finding their
domestic and foreign policy interests increasingly at
odds with US strategic considerations", and that
"evidence suggests that investment is not being made
in a timely enough manner" to meet global needs - is
the seed of what has now become an almost openly
adversarial position. 

During the northern summer, news reports began to
paint Saudi Arabia as a possible adversary to the US.
Rhetoric regarding Iraq has also been steadily
ratcheted up, creating what amounts to an allegation
du jour scenario. US military circles have watched as
Iraq became "the tactical pivot", Saudi Arabia "the
strategic pivot", and an agenda of "not just a new
regime in Iraq" but a "new Middle East" has been
increasingly discussed.



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