Home / Asia / Mission Accomplished: China Gets Half of Iraq’s Oil.
Print Friendly and PDF

Mission Accomplished: China Gets Half of Iraq’s Oil.

Written by Gary North on June 4, 2013

You may remember the promise of the neocons in 2003: America’s war with Iraq would be paid for by Iraqi oil. Besides, the war would cost only $50 billion — $60 billion, tops.

The war cost $2.2 trillion$3 trillion, tops — and the oil is being gobbled up by China.

Oh, well, they shrug. Bygone are bygones. Win a few, lose a few. Better luck next time. Don’t blame us. Now let’s bomb Iran.

The story of how China is buying almost half of Iraq’s oil has not gotten much attention. It does not seem to be consistent with President Bush’s war aims. But that’s how the fortune cookie crumbles. The war cost the Chinese government nothing. It is now using its newly printed counterfeit money to buy the oil that it could not legally buy under the Clinton Administration’s oil export restrictions on Iraq.

The war was fought over oil. A few of us said so in 2003. But what we did not understand was that it was fought to let China get half the oil. We thought it was fought to keep China from getting the oil. Silly us.

China’s government is making deals with Mobil Exxon to produce more oil in Iraq. It is willing to do this at rock-bottom prices. It is buying up the output by co-funding the exploration and capital costs. American companies are priced out. They want a shot at profit. China’s government is interested in subsidizing its domestic manufacturing sector. So, it is under-bidding private oil exploration firms. The oil flows east. The New York Times reports:

Before the invasion, Iraq’s oil industry was sputtering, largely walled off from world markets by international sanctions against the government of Saddam Hussein, so his overthrow always carried the promise of renewed access to the country’s immense reserves. Chinese state-owned companies seized the opportunity, pouring more than $2 billion a year and hundreds of workers into Iraq, and just as important, showing a willingness to play by the new Iraqi government’s rules and to accept lower profits to win contracts.

“We lost out,” said Michael Makovsky, a former Defense Department official in the Bush administration who worked on Iraq oil policy. “The Chinese had nothing 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.”

This is not what the neocons spelled out in 2003. President Bush did not have this in his war aims. Call it the fog of pre-war.


Continue Reading on www.nytimes.com

Print Friendly and PDF

Posting Policy:
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

9 thoughts on “Mission Accomplished: China Gets Half of Iraq’s Oil.

  1. Seems "We the people" get screwed in everything our government does or does not do. We should tell China, and Iraq, if you want the oil to keep flowing, you are going to have to pay us to police it. At the very least to start subtracting money we owe to China on our borrowing debt! Seems our highly educated people in Washington fail again. Pathetic!

  2. This piece is a really good starting point for those who still don't believe that "War is a Racket". Keep it up, Gary!

  3. jaybird says:

    I like the idea to subtract the money that we owe China.

  4. We fight the war and lose our GI"s and china gets the oil. Our spade in Chief will set back and let it happen.

  5. Are we that stupid? We fight and die in Iraq and China comes in and takes oil from Iraq right under our nose. We must get rid of this Administration.

  6. Bob Marshall says:

    ' America buys war like children gobble candy." Henry Kissinger "military men are just dumb stupid animals to be used as pawns in foreign policy." Henry Kissinger.. In 2007 Zbigniew Brzezinski the U.S. Senate that the "war on terror' was a "mythical historical narrative" or in other words a complete fiction."

  7. Seymour Kleerly says:

    Obama was AGAINST the Iraq invasion! The cards were delt long before he was elected. To blame him for this is the height of ignorance and your RACISM is very sad to see.

  8. Seymour Kleerly says:

    Kudos to North for having opposed the mind boggling Iraq invasion and to risk Conservative backlash by admitting it. Hope springs eternal.

  9. One could say that Obama and his liberal Democrats suck at business… but then most communists are.