More from Ray McGovern.
and George Lakoff adds:
The contracts that the Bush administration has been pushing the Iraqi government to accept are not just about the distribution of oil among the Sunnis, Shiites, and Kurds. The contracts call for 30-year exclusive rights for British and American oil companies, rights that cannot be revoked by future Iraqi governments. They are called “production sharing agreements” (or “PSA’s”) - a legalistic code word. The Iraqi government would technically own the oil, but could not control it; only the companies could do that. ExxonMobil and others would invest in developing the infrastructure for the oil (drilling, oil rigs, refining) and would get 75% of the “cost oil” profits, until they got their investment back. After that, they would own the infrastructure (paid for by oil profits), and then get 20% of oil profits after that (twice the usual rate). The profits are estimated to be in the hundreds of billions of dollars. And the Iraqi people would have no democratic control over their own major resource. No other Middle East country has such an arrangement.
Greeted as liberators? Not so much.
