Prior to the invasion of Iraq in 2003 by a coalition of reluctant countries led by a delusional United States chasing fictional WMD’s, you may recall that there were international sanctions against Iraq that were apparently crippling their economy — especially the export of oil from that oil-rich country. A cynic might suggest that the invasion was the brain child of Big Oil, since they were having difficulties getting their hands on that oil due to the sanctions, but I am not willing to make such an assertion. I say this even though I am aware that the first thing secured by the United States forces were the oil fields — not the museums where millions of dollars in treasures were pilfered and never found again. But, as I say, I am not cynical enough to suggest that Big Oil was behind the invasion — again, in spite of the fact that Bush and Cheney had (and still have) connections with Big Oil. I’m not sayin’ . . . .
In any event, as it happens, now that that abortive war is over and Iraq has been restored to relative calm and the oil fields are up and running America’s Big Oil
maggots magnates are now fuming because they still can’t get their greedy hands on all of that oil. In fact, the Iraqis are selling the bulk of it to China which had nothing whatever to do with the invasion of the country. But the Chinese are willing to pay top dollar for the oil because China is not being run by the oil maggots magnates; it is run by a government that is more concerned about getting hold of the oil than they are about the profits. Chinese oil companies are not privately owned by companies like Exxon/Mobil, which owns the lion’s share in one of the largest oil fields in Iraq; they are state-owned and the country needs the energy. These companies do not have to answer to their shareholders, pay dividends, or even generate profits. The American oil maggots magnates want to buy the oil cheap and sell it high whereas the Chinese are willing to pay the Iraqis what they demand. Guess where the oil increasingly ends up? In China, of course — not the United States.
Not only are the Chinese buying the Iraqi oil at relatively high prices, they are pouring people and billions of dollars into Iraq to make sure the supply of oil continues for as long as possible and that they get a larger and larger percentage of the oil that is exported. As we are told in an article first published in the New York Times and written by Tim Arango and Clifford Krauss, former Defense Department official Michael Makovsky, who worked for the Bush administration, complains that “We lost out. The Chinese had nothing whatever to do with the war, but from an economic standpoint they are benefiting from it, and our Fifth Fleet and air forces are helping to assure their supply.”
It’s enough to restore one’s faith in the ancient notion of cosmic harmony — until you stop to think of all the killed, wounded, and displaced people that war cost.
I’m of the school these wars were about GW Bush, and his belief that only “War” Presidents were left with a positive, historical legacy. Cheney, on the other hand, was underhanded and had a long-term relationship with big oil, so he may have played the oil card and found a willing accomplice, easily duped, in GW Bush. Their two goals worked hand in hand.
It is poetic justice if now, China is winning out on the oil fields. Exxon would only be selling to them anyway, it wouldn’t be coming to US markets.
Apparently China is winning out in the oil fields! (And I agree with you about Bush and Cheney: the latter pulled the strings.)
Very good post. What do they say about successful real estate investing? If you have patience and money, you will win more than you lose. Plus, we went from people being on our side after 9/11 to questioning America’s values. So, we lost more than oil.
Indeed we did!
As my father-in-law, an oil imperialist if there ever was one, was wont to intone: “ten Americans = one Jew, but ten Jews = one Chinese”! We did all the killin’, the poor Iraqis did all the dyin’, and the Chinese are reapin’ all the rewards!,