Good morning, Keith,

Your hypothesis isn't necessarily wrong (though I personally think other
hypotheses are closer to the mark); it is just that 'nothing' happened on
the Sept 11 schedule you laid out. But your core suspicions could yet turn
out to be correct, so I hope you don't stop thinking about it, and
assimilating into it more information as it emerges, and reporting it here.

Cheers,
Lawry

-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:owner-futurework@;scribe.uwaterloo.ca]On Behalf Of Keith Hudson
Sent: Saturday, October 12, 2002 12:45 AM
To: Karen Watters Cole
Cc: [EMAIL PROTECTED]
Subject: Re: FW: What is the real agenda in the ME?

Karen,

At 07:50 11/10/02 -0700, you wrote:
<<<<
Keith, this is for you and all the hard work you have shared with us
online.  Not a conclusive opinion, but certainly elaborates on the case in
point.
>>>>

That's nice of you to say so. But my hypothesis wasn't hard work -- just
me, being carried away by the apparent absurdity of Bush's ME policy. The
following article that you posted is one of the best I've read. Yet it's
self-contradictory! Michael Moran makes a good case for suggesting that
Bush/Cheney/etc are attempting to build up a second strategic oil reserve
(that is, in Iraq as well as in Saudi Arabia), and then he denies it,
saying it's too simplistic!

Whether Bush is aiming for regime change in Saudi Arabia primarily (my
former hypothesis) or in Iraq, I wouldn't like to guess now. All I would
suggest is that, because the pressure that Bush is exerting is so
considerable, then any regime change, however "democratic" it might be
dressed up to be, will have been done under duress, and will only add to
instability in the Middle East.

Keith

<<<<
Oil, war and the future of Iraq
Washington finds a novel way to use the 'oil weapon'

By Michael Moran

NEW YORK, Oct. 10 - Oil: the ultimate conspiracy theory.  Forget "wag the
dog" electoral explanations for George W. Bush's determination to go to war
in Iraq; put aside the idea that he is "avenging his father's honor," or
the alleged al-Qaida bigwigs in Baghdad, or even the need to divert public
attention away from Osama bin Laden's next move.  Nothing animates Bush's
critics more effectively than the suggestion that our Texas oilman
president and his ex-Halliburton CEO sidekick are plotting to turn Iraq
into America's strategic petroleum reserve.

Like all good conspiracy theories, this one is only about half true.
Colonizing Middle Eastern nations, in the classic European sense of the
word, is the last thing the current administration desires. After all, they
want out of Afghanistan even before they have determined whether or not bin
Laden still walks the earth.  The CPR gang - Cheney, Powell, Rumsfeld - are
not imperialists, at least not in that sense.

But neither is oil irrelevant, and at the very least the administration's
current actions suggest that the United States will use the prize of Iraq's
oil and gas - the world's second-largest proven reserves - to get what it
wants before the war and afterward, as well.  If anyone still wonders
whether America will succeed in getting the resolution it wants out of the
United Nations Security Council, let me assure you below that Washington's
diplomats fully understand how oil relates to this game.

SUBTLE AND FRANK
Many nations and corporations - some of them American - have signed oil
deals with Saddam Hussein's regime in the hope that, once U.N. sanctions
are lifted, they will reap lucrative benefits.  The three nations whose
contracts are most at risk should Saddam somehow disappear are China,
Russia and France.* Coincidentally, these same three nations - along with
the United States and Britain - control the U.N. Security Council by virtue
of their power to veto any resolution they dislike.

The job of persuading these nations to sign onto a tough new U.N.
resolution on Iraq involves two distinct campaigns: one public and somewhat
subtle, the other behind the scenes, where frank talk between diplomats is
possible.

Consider the public, subtle approach this week of Ahmed Chalabi, a leader
of the U.S.-based Iraqi opposition whose aides have been meeting with
Russian officials.  Speaking of Russia's oil contracts, the Iraqi National
Congress leader says: "People in Iraq will be more amenable if Russia does
not obstruct the liberation of Iraq."  Russia's current financial exposure
in Iraq - the amount Baghdad owes to Moscow - is thought to be on the order
of $8 billion.

But that is chump change next to what Russian oil companies might earn if
they can begin exploiting oil and gas reserves currently assigned to them.
In the post-Saddam world, who's to say that Moscow's contracts with the
Butcher of Baghdad will be honored?  Why, America will say.

James Woolsey, the former CIA director and a hawkish advocate for regime
change, put it this way in The Washington Post recently:  "France and
Russia have oil interests in Iraq.  They should be told that if they are of
assistance in moving Iraq toward decent government, we'll do the best we
can to ensure that the new government and American companies work closely
with them."

Woolsey is not the kind of guy who speculates about such things.  When his
type says publicly "here's what we should do," you can bet it is already
being done.  Along those lines, it should strike no one as odd that the
French, with enormous concessions to their oil giant Total at stake, have
taken the lead in forging a diplomatic solution at the council.

THE BEST WE CAN
Now take a leap of faith with me and assume that Saddam, by hook, crook or
Tomahawk, is removed from power in Baghdad by a UN-sanctioned operation and
the US-led coalition installs the Iraqi National Congress (INC) in his
place.  Does this mean that Exxon-Mobil, BP-Amoco, Chevron-Texaco and the
rest split the country up the way the Allied Powers divided Germany after
World War II?

Not likely.  First of all, the INC studiously has avoided taking a stance
on post-war oil spoils, in part because the oil issue - like slavery at the
American Continental Congress - is so sensitive that it could destroy the
fragile, multi-ethnic INC.  Furthermore, with help from Washington, the
leadership of the Iraqi opposition has come to recognize the value of
uncertainty in the oil realm.  Leaving open the possibility that Saddam-era
contracts will be honored not only helps the American diplomatic cause; it
also may make it easier to deal with remnants of Saddam's inner circle if
it is they, rather than an international coalition, who effect "regime
change."

An invasion scenario, however, clearly favors the United States.  Given the
enormous potential for civil conflict within a post-Saddam Iraq - Shiites
taking revenge on Sunnis, ethnic Kurds and ethnic Turkmens battling for the
oil capital of Kirkuk, remnants of Saddam's Tikritis causing trouble here
and there - American post-war scenarios all envision an occupation force
lasting years.  That puts America's military in the cat-bird seat when it
comes to enforcing oil claims.  You can be sure that, whatever France's
Total or China's state oil company may say they are due, this particular
administration is more naturally inclined to see U.S. oil firms in a
position of dominance, and the Iraqi opposition figures who are installed
Karzai-like in Baghdad will need a friendly superpower to protect them for
some time.

SO, CHEAP OIL?
Here we come to the $64 trillion question: Does an American-led invasion
that topples Saddam and puts Iraq in the hands of a friendly government
leave America with the world's largest strategic petroleum reserve?

Not really.  For 30 years now, the price of oil has been controlled
primarily by Saudi Arabia.  The way the Saudis do this is part carrot, part
stick.  OPEC members are required to produce only an agreed quota of oil.
Even though most cheat, Saudi Arabia holds the other OPEC members roughly
to their pledges by threatening renegades with bankruptcy.  In essence, if
OPEC doesn't heel, Saudi Arabia can flood the market with its own oil,
causing prices to plummet.  Because of this power, the United States
protects the Saudi royals and overlooks their abusive regime.  In return,
America gets a $1 discount on every barrel it buys from the kingdom.

Theoretically, Iraq's oil industry - now producing 2.2 million barrels per
day (bpd) - could break the Saudi hold on OPEC and thus allow the big
consuming countries - the United States, Japan and Western Europe - to call
the shots.

But Iraq's oil industry is in a shambles and likely to worsen after any
bombing campaign.  Current assessments suggest it would take up to a decade
before production could increase significantly - this in the most
optimistic post-Saddam political scenarios.

Furthermore, there are powerful interests both within the United States and
outside who don't want to see oil prices collapse.  The aforementioned
American oil giants, prominent butterers of the Bush administration's
bread, are exploring new fields in remote regions of Alaska, Colombia and
Central and Southeast Asia that will only be profitable at prices above
about $22 per barrel.

Then there is Russia, suddenly a non-OPEC oil power in its own right.  The
Soviet oil industry collapsed just before the USSR did, but Russia's is now
back and already sparring with the Saudis for control of world prices.  But
Russian oil is located in some of the most unforgiving regions of the
planet: northern Siberia, the frozen Arctic and Barents seas, and it takes
world prices of $25 per barrel and above for this to be worthwhile.

Too many voices right now - in America, Europe and especially the Middle
East - see oil behind each and every word the Bush administration utters on
Iraq.  That is far too simplistic, and worse, it sets up a straw man that
this administration takes great joy in knocking down.  But oil is an issue
- in a complex, long-term and very real way.  To deny it is to deny reality.

*Other nations that have signed contracts with Saddam Hussein's government
since 1991 include India, Italy, the Netherlands, Algeria, Singapore,
Malaysia and Vietnam.  Among this group, only Singapore is on the council
as one of the 10 "rotating" members until the end of 2002.
>>>>



----------------------------------------------------------------------------
--------------
Keith Hudson,6 Upper Camden Place, Bath BA1 5HX, England
Tel:01225 312622/444881; Fax:01225 447727; E-mail: [EMAIL PROTECTED]
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