Oil : freemarketnews : IRAQ WAR WAS TO DESTABILIZE OIL?


Richard Moore

nice to see more kinds of people 'getting it'.




Tuesday, October 18, 2005 - FreeMarketNews.com 

Why did George W. Bush indicate to England's Prime Minister
Tony Blair that he would consider military action in other
Middle Eastern countries, including perhaps Saudi Arabia? The
explanation may be a simple one, according to various
free-market thinkers who have closely scrutinized the
administration's behavior. While Bush may have been motivated
by a number of factors when contemplating military action, the
speculation grows that one of them would have been the
potential for driving up the price of oil, a benefit to the
administration's oil-industry allies.

The story, reported by British newspapers such as the
Independent, is based on a recently disclosed "top secret
Downing Street memo," which shows that in a secret telephone
conversation in January 2003, the president indicated that he
"wanted to go beyond Iraq," and "implied that the military
action against Saddam Hussein was only a first step." The
disclosure of the memo actually comes from "Lawless World," a
book by leading international lawyer Philippe Sands, who is
quoted as saying, "The conversation seems to indicate that
Iraq was not seen as an isolated issue but as a first step in
relation to a broader project." He is also attributed with the
statement that "the mention of Saudi Arabia indicates that the
true objectives were not related exclusively to WMD," after
noting that at that time the Saudis were not considered to be
a WMD threat or source.

FMNN has reported in the past that one of Bush's closest
relationships is with Houston-based oil-banker Matthew Simmons
who may also have an office in the White House. Simmons &
Company International (SCI) works in numerous areas of oil and
gas, but its initial success was in investment banking in the
1970s and 1980s, and Simmons, a well-respected member of the
internationalist Council on Foreign Relations has been a
tireless promoter of the "peak oil" theory - that the world is
running out of energy. He recently wrote a book suggesting
that the gigantic Saudi Arabian oil fields were damaged from
over-production, and, judging from Internet sites, he has
spent a good deal of time traveling to foreign countries to
repeat his message about impending oil shortages.

Attorney Sands is perhaps puzzled by Bush's notion of invading
other oil rich countries in the Middle East, but seen in the
context of driving up the price of oil, Bush's stated
intentions make sense. In Iraq, Bush expected to control and
dominate the region's energy resources "on the ground" as the
result of a successful campaign. But the administration no
doubt also expected higher oil prices. If the United States
had gone on to military action elsewhere in the Middle East,
oil prices no doubt would have moved even higher, even sooner.
An invasion of Saudi Arabia would have had an extreme impact.

staff & nbspreports - Free-Market News Network



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