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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?


To: T L Comiskey who wrote (64449)4/17/2006 3:48:50 PM
From: James Calladine  Respond to of 361426
 
BUSH AND FRIENDS ONLY NEED TO GET A TINY PIECE OF THIS AND THEY WILL COME OUT AMONGST THE WEALTHIEST PERSONS IN THE WORLD. NICE WHEN YOU CAN CO-OPT THE MILITARY OF A NATION FOR FREE AND GENERATE A LOT OF PERSONAL WEALTH FOR OTHERS AND MAYBE A BIT FOR YOURSELF, TOO....!

Grand Theft Babylon

by Ann Berg

Beneath the bellows over Iran and the mayhem in Iraq, the real struggle for Mideast dominance quietly unfolds. As petrostates around the globe exert increasing command over their energy assets, Iraq is on the verge of ceding theirs to the control of American and British oil companies. If all goes as planned, the oil giants will have performed the heist of the century.

A little-known analysis by Greg Muttitt in November 2005 for Global Policy Forum reveals the breathtaking earnings to be generated by the "production sharing agreements" [.pdf] ready for signing the day Iraq officially forms its new government. These agreements, which in name imply revenue-sharing and state control over the underground assets, in truth are vehicles so skewed in favor of Anglo-American petroleum companies that they have no counterpart in today's oil world.

According to Muttitt's conservative estimates, Iraq stands to lose between $74-194 billion in these agreements over the life of the contracts, which will most likely be in effect for 40 years. Instead of the average rate of return of 12 percent generated by most oil field development investments today, these arrangements will net between 42 and 162 percent. Not since Standard Oil won a 60-year concession from Saudi Arabia in 1933 for $35,000 has the oil industry been poised to make so much money.

Types of Oil Agreements

As described by Muttitt, the oil industry essentially operates under three models:

The Nationalized Industry Model: The state makes all of the decisions and takes all of the profits. Foreign participation is limited to technical service contracts. This model is used throughout the Gulf region and has been Iraq's model since the early 1970s. A variant of this model is the risk service model, in which the capital provider receives a fixed rate of return in exchange for investment, sometimes in oil or gas paybacks (the system underlying many Iranian arrangements.)

The Concession Model: The state grants a private company a license to extract oil in exchange for royalties and taxes.

The Production Sharing Agreement: The state theoretically controls the oil while a private company extracts it under contract.

According to Muttitt,

"In practice, however, the actions of the state are severely constrained by stipulations in the contract. In a PSA, the private company provides the capital investment, first in exploration, then drilling and the construction of infrastructure. The first proportion of oil extracted is then allocated to the company, which uses oil sales to recoup its costs and capital investment – the oil used for this purpose is termed 'cost oil.' There is usually a limit on what proportion of oil production in any year can count as cost oil. Once costs have been recovered, the remaining 'profit oil' is divided between state and company in agreed proportions. The company is usually taxed on its profit oil. There may also be a royalty payable on all oil produced."

Only about 12 percent of the world's oil reserves operate under production sharing agreements (PSAs) according to the International Energy Agency. None of the Mideast countries use PSAs – these structures being more suited for exploring marginally profitable oil fields, where cost vs. benefit is a question mark. Since the reserve levels of Iraqi oil and the investment capital needed for field development can be readily estimated by petroleum companies, PSAs are an unnatural choice for the Iraqi nation.

But they are an ideal choice for oil companies. One of the lures of PSAs in Iraq is their ability to immediately "book" new reserves. To see how critical this is one only need go back two years, when the market punished Shell Oil for overstating reserve levels by over 20 percent – drubbing its credit rating and stock price. PSAs also guarantee a level of tax and regulatory predictability. Add in super-sized profits, and PSAs become irresistible.

Most interesting is the lack of discourse on the subject. In fact, handpicked Iraqi former prime minister Iyad Allawi stated that these arrangements were not open for discussion, underscoring the enormous importance of being part of the new government and signifying that most of the deals are likely already determined.

And therein lies the rub. Until the new government is truly formed, none of these deals can be signed.

U.S. Frustration

Is it any wonder that the Bush administration has told the Iraqis that it is at the end of its tether and to get on with the task of forming a government? And can we have any doubt that U.S. bases will be a permanent part of this inverted mercantilist enterprise – one funded by the average American, who sinks into penury while the most profitable companies on the planet are about to rake in astronomical earnings?

According to Chris Cook, the former International Petroleum Exchange director and founder of the Iranian Oil Bourse, the recent saber-rattling toward Iran has nothing to do with its nuclear ambitions and everything to do with its interference in the formation of an Iraqi government. He believes that by foiling the new Iraqi government, "Iran and its Arab neighbors in the Gulf Cooperation Council might pool some of the proceeds of recent energy sales and use them by investing as 'capital partners' in Iraqi crude-oil production." In other words, Iran could muscle out Anglo-American PSAs – an untenable prospect for the Bush administration.

Looking back on Paul Bremer's decision to exclude oil from the Coalition Provisional Authority's privatization scheme and Dick Cheney's aggressive fight to keep secret the deliberations of his energy task force, it is clear that the PSA plan was brewing before the invasion. And when George Bush says he'll accept nothing less than total victory in Iraq, we can now envision him performing the triumphal act – bearing the gift of Mammon to the world's richest class while fleecing two nations at once.



Find this article at:
antiwar.com



To: T L Comiskey who wrote (64449)4/17/2006 11:50:48 PM
From: Karen Lawrence  Read Replies (2) | Respond to of 361426
 
Did you see Lord of War? Good movie.



To: T L Comiskey who wrote (64449)4/18/2006 12:32:46 AM
From: Karen Lawrence  Respond to of 361426
 
Washington's Hidden Agenda: Restore the Drug Trade
The Spoils of War:
Afghanistan's Multibillion Dollar Heroin Trade
by Michel Chossudovsky
www.globalresearch.ca 5 April 2004
The URL of this article is: globalresearch.ca

--------------------------------------------------------------------------------

Since the US led invasion of Afghanistan in October 2001, the Golden Crescent opium trade has soared. According to the US media, this lucrative contraband is protected by Osama, the Taliban, not to mention, of course, the regional warlords, in defiance of the "international community".

The heroin business is said to be "filling the coffers of the Taliban". In the words of the US State Department:

"Opium is a source of literally billions of dollars to extremist and criminal groups... [C]utting down the opium supply is central to establishing a secure and stable democracy, as well as winning the global war on terrorism," (Statement of Assistant Secretary of State Robert Charles. Congressional Hearing, 1 April 2004)

According to the United Nations Office on Drugs and Crime (UNODC), opium production in Afghanistan in 2003 is estimated at 3,600 tons, with an estimated area under cultivation of the order of 80,000 hectares. (UNODC at unodc.org ).An even larger bumper harvest is predicted for 2004.

The State Department suggests that up to 120 000 hectares were under cultivation in 2004. (Congressional Hearing, op cit):

"We could be on a path for a significant surge. Some observers indicate perhaps as much as 50 percent to 100 percent growth in the 2004 crop over the already troubling figures from last year."(Ibid)

"Operation Containment"

In response to the post-Taliban surge in opium production, the Bush administration has boosted its counter terrorism activities, while allocating substantial amounts of public money to the Drug Enforcement Administration's West Asia initiative, dubbed "Operation Containment."

The various reports and official statements are, of course, blended in with the usual "balanced" self critique that "the international community is not doing enough", and that what we need is "transparency".

The headlines are "Drugs, warlords and insecurity overshadow Afghanistan's path to democracy". In chorus, the US media is accusing the defunct "hard-line Islamic regime", without even acknowledging that the Taliban --in collaboration with the United Nations-- had imposed a successful ban on poppy cultivation in 2000. Opium production declined by more than 90 per cent in 2001. In fact the surge in opium cultivation production coincided with the onslaught of the US-led military operation and the downfall of the Taliban regime. From October through December 2001, farmers started to replant poppy on an extensive basis.

The success of Afghanistan's 2000 drug eradication program under the Taliban had been acknowledged at the October 2001 session of the UN General Assembly (which took place barely a few days after the beginning of the 2001 bombing raids). No other UNODC member country was able to implement a comparable program:

"Turning first to drug control, I had expected to concentrate my remarks on the implications of the Taliban's ban on opium poppy cultivation in areas under their control... We now have the results of our annual ground survey of poppy cultivation in Afghanistan. This year's production [2001] is around 185 tons. This is down from the 3300 tons last year [2000], a decrease of over 94 per cent. Compared to the record harvest of 4700 tons two years ago, the decrease is well over 97 per cent.

Any decrease in illicit cultivation is welcomed, especially in cases like this when no displacement, locally or in other countries, took place to weaken the achievement" (Remarks on behalf of UNODC Executive Director at the UN General Assembly, Oct 2001, unodc.org )

United Nations' Coverup
In the wake of the US invasion, shift in rhetoric. UNODC is now acting as if the 2000 opium ban had never happened:

"the battle against narcotics cultivation has been fought and won in other countries and it [is] possible to do so here [in Afghanistan], with strong, democratic governance, international assistance and improved security and integrity." ( Statement of the UNODC Representative in Afghanistan at the :February 2004 International Counter Narcotics Conference, unodc.org , p. 5).

In fact, both Washington and the UNODC now claim that the objective of the Taliban in 2000 was not really "drug eradication" but a devious scheme to trigger "an artificial shortfall in supply", which would drive up World prices of heroin.

Ironically, this twisted logic, which now forms part of a new "UN consensus", is refuted by a report of the UNODC office in Pakistan, which confirmed, at the time, that there was no evidence of stockpiling by the Taliban. (Deseret News, Salt Lake City, Utah. 5 October 2003)

Washington's Hidden Agenda: Restore the Drug Trade
In the wake of the 2001 US bombing of Afghanistan, the British government of Tony Blair was entrusted by the G-8 Group of leading industrial nations to carry out a drug eradication program, which would, in theory, allow Afghan farmers to switch out of poppy cultivation into alternative crops. The British were working out of Kabul in close liaison with the US DEA's "Operation Containment".

The UK sponsored crop eradication program is an obvious smokescreen. Since October 2001, opium poppy cultivation has skyrocketed. The presence of occupation forces in Afghanistan did not result in the eradication of poppy cultivation. Quite the opposite.

The Taliban prohibition had indeed caused "the beginning of a heroin shortage in Europe by the end of 2001", as acknowledged by the UNODC.

Heroin is a multibillion dollar business supported by powerful interests, which requires a steady and secure commodity flow. One of the "hidden" objectives of the war was precisely to restore the CIA sponsored drug trade to its historical levels and exert direct control over the drug routes.

Immediately following the October 2001 invasion, opium markets were restored. Opium prices spiraled. By early 2002, the opium price (in dollars/kg) was almost 10 times higher than in 2000.

In 2001, under the Taliban opiate production stood at 185 tons, increasing to 3400 tons in 2002 under the US sponsored puppet regime of President Hamid Karzai.

While highlighting Karzai's patriotic struggle against the Taliban, the media fails to mention that Karzai collaborated with the Taliban. He had also been on the payroll of a major US oil company, UNOCAL. In fact, since the mid-1990s, Hamid Karzai had acted as a consultant and lobbyist for UNOCAL in negotiations with the Taliban. According to the Saudi newspaper Al-Watan:

"Karzai has been a Central Intelligence Agency covert operator since the 1980s. He collaborated with the CIA in funneling U.S. aid to the Taliban as of 1994 when the Americans had secretly and through the Pakistanis [specifically the ISI] supported the Taliban's assumption of power." (quoted in Karen Talbot, U.S. Energy Giant Unocal Appoints Interim Government in Kabul, Global Outlook, No. 1, Spring 2002. p. 70. See also BBC Monitoring Service, 15 December 2001)

History of the Golden Crescent Drug trade
It is worth recalling the history of the Golden Crescent drug trade, which is intimately related to the CIA's covert operations in the region since the onslaught of the Soviet-Afghan war and its aftermath.

Prior to the Soviet-Afghan war (1979-1989), opium production in Afghanistan and Pakistan was directed to small regional markets. There was no local production of heroin. (Alfred McCoy, Drug Fallout: the CIA's Forty Year Complicity in the Narcotics Trade. The Progressive, 1 August 1997).

The Afghan narcotics economy was a carefully designed project of the CIA, supported by US foreign policy.

As revealed in the Iran-Contra and Bank of Commerce and Credit International (BCCI) scandals, CIA covert operations in support of the Afghan Mujahideen had been funded through the laundering of drug money. "Dirty money" was recycled --through a number of banking institutions (in the Middle East) as well as through anonymous CIA shell companies--, into "covert money," used to finance various insurgent groups during the Soviet-Afghan war, and its aftermath:

"Because the US wanted to supply the Mujahideen rebels in Afghanistan with stinger missiles and other military hardware it needed the full cooperation of Pakistan. By the mid-1980s, the CIA operation in Islamabad was one of the largest US intelligence stations in the World. `If BCCI is such an embarrassment to the US that forthright investigations are not being pursued it has a lot to do with the blind eye the US turned to the heroin trafficking in Pakistan', said a US intelligence officer. ("The Dirtiest Bank of All," Time, July 29, 1991, p. 22.)

Researcher Alfred McCoy's study confirms that within two years of the onslaught of the CIA's covert operation in Afghanistan in 1979,

"the Pakistan-Afghanistan borderlands became the world's top heroin producer, supplying 60 per cent of U.S. demand. In Pakistan, the heroin-addict population went from near zero in 1979 to 1.2 million by 1985, a much steeper rise than in any other nation."

"CIA assets again controlled this heroin trade. As the Mujahideen guerrillas seized territory inside Afghanistan, they ordered peasants to plant opium as a revolutionary tax. Across the border in Pakistan, Afghan leaders and local syndicates under the protection of Pakistan Intelligence operated hundreds of heroin laboratories. During this decade of wide-open drug-dealing, the U.S. Drug Enforcement Agency in Islamabad failed to instigate major seizures or arrests.

U.S. officials had refused to investigate charges of heroin dealing by its Afghan allies because U.S. narcotics policy in Afghanistan has been subordinated to the war against Soviet influence there. In 1995, the former CIA director of the Afghan operation, Charles Cogan, admitted the CIA had indeed sacrificed the drug war to fight the Cold War. 'Our main mission was to do as much damage as possible to the Soviets. We didn't really have the resources or the time to devote to an investigation of the drug trade,' I don't think that we need to apologize for this. Every situation has its fallout. There was fallout in terms of drugs, yes. But the main objective was accomplished. The Soviets left Afghanistan.'"(McCoy, op cit)

The role of the CIA, which is amply documented, is not mentioned in official UNODC publications, which focus on internal social and political factors. Needless to say, the historical roots of the opium trade have been grossly distorted.

(See UNODC unodc.org

According to the UNODC, Afghanistan’s opium production has increased, more than 15-fold since 1979. In the wake of the Soviet-Afghan war, the growth of the narcotics economy has continued unabated. The Taliban, which were supported by the US, were initially instrumental in the further growth of opiate production until the 2000 opium ban.

(See UNODC unodc.org

This recycling of drug money was used to finance the post-Cold War insurgencies in Central Asia and the Balkans including Al Qaeda. (For details, see Michel Chossudovsky, War and Globalization, The Truth behind September 11, Global Outlook, 2002, globalresearch.ca )

Narcotics: Second to Oil and the Arms Trade
The revenues generated from the CIA sponsored Afghan drug trade are sizeable. The Afghan trade in opiates constitutes a large share of the worldwide annual turnover of narcotics, which was estimated by the United Nations to be of the order of $400-500 billion. (Douglas Keh, Drug Money in a Changing World, Technical document No. 4, 1998, Vienna UNDCP, p. 4. See also United Nations Drug Control Program, Report of the International Narcotics Control Board for 1999, E/INCB/1999/1 United Nations, Vienna 1999, p. 49-51, and Richard Lapper, UN Fears Growth of Heroin Trade, Financial Times, 24 February 2000). At the time these UN figures were first brought out (1994), the (estimated) global trade in drugs was of the same order of magnitude as the global trade in oil.

The IMF estimated global money laundering to be between 590 billion and 1.5 trillion dollars a year, representing 2-5 percent of global GDP. (Asian Banker, 15 August 2003). A large share of global money laundering as estimated by the IMF is linked to the trade in narcotics.

from Illya's Heart on SI