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It's about oil

Background - April 22, 2005
Bush is clearly trying to get control of Iraq's oil reserves.

Classified: Sticky fingers in the Whitehouse

Summary

Control over oil is a central motivation for the Bushadministration's military confrontation with Iraq. The unilateralistnature of the US's new security stance in a post-September 11th worldhas become inexorably linked with the importance of controlling oil.

The dependence of the economy on oil forces US foreign policy toequate control of oil with its "vital interest". Two thirds of theworld's oil supplies are in the Persian Gulf, making control andinfluence in this region crucial.

The fight to control oil has increased global conflict. Theproduction and use of oil has destabilized governments and had ananti-democratic influence in oil producing countries. The use of oil iscausing climate change, which poses the greatest environmental threatto our planet.

Oil companies such as ExxonMobil have used their political influenceto undermine attempts to tackle climate change, and encouraged USdependence. ExxonMobil's contributions in the 2002 election cycletotaled more than US$1 million with 91 percent of it going to theRepublicans.

Greenpeace believes that real security will only come about when westop our global addiction to oil and transfer our resources toproducing clean renewable energy.

Driven by oil

The global economy is underpinned by the use of fossil fuels such ascoal, gas and oil. Securing control of this valuable resource hasbecome a major driver for American foreign policy.

The US is becoming increasingly dependent on foreign supplies ofoil. In 2001 the US imported 54 percent of its oil, compared with 2percent in 1950. The US accounts for about 25 percent of global oilconsumption but has only 3 percent of the proven oil reserves. In 2002around twenty percent of all oil imported into the US comes from thePersian Gulf region with, for example, 52 percent of Exxon's total oilimports for the first six months of the year coming from the region.

Since becoming president George W. Bush has continually stated thatthe US faces an energy crisis. Although there is little proof, he hasbased many of his policies on this false understanding.

The Bush Administration's response to the "energy crisis" hasconcentrated on the supply side, with no attempt to reduce anever-increasing domestic demand for oil.

The "dig, drill and destroy" approach to energy policy threatenssome of the US's most pristine areas and will increase air pollution.And to little effect. The entire output from drilling in the ArcticNational Wildlife Refuge only yields about six months' worth of oil forthe US.

Apart from its consequences in the US, the emphasis on supplynaturally leads to an aggressive foreign policy. The National EnergyPolicy Group chaired by Vice President Cheney concluded that energysecurity should be a priority of trade and foreign policy. In a recentstatement to Congress, General Anthony Zinni testified that the US"must have free access to the region's [Persian Gulf] resources".

Iraq contains 112 billion barrels of proven oil reserves, the thirdlargest in the world (behind Saudi Arabia and Canada). It has more thanthe combined proved reserves of the Caspian Basin, Siberia, Alaska, theNorth Sea and West Shetland.

Oil runs deep in the Bush Administration. Apart from President Bushhimself, Vice President Cheney is the former CEO of oil-services giantHalliburton Co. Donald Evans, the Secretary of Commerce, and Secretaryof Energy Stanley Abraham both previously worked for oil giant TomBrown. Condoleezza Rice, the President's national security advisor, isa former member of the board of directors of Chevron. Rice even had aChevron oil tanker named after her.

Corporate polluters in the driving seat

Given many of its members' natural affinity with oil companies it isnot surprising that Bush Administration policies on energy seem to havecreated an open door for corporate polluters.

Companies like ExxonMobil have worked hard to protect their corebusiness. ExxonMobil has for the last ten years undermined every effortto reduce the world's reliance on oil by pressuring the US governmentinto abandoning its commitments to the Kyoto Protocol on global warming.

During the 2002 election cycle, ExxonMobil gave US$1,306,581 topolitical campaigns - the third largest contributor among oil and gascompany campaign contributions. Of this total, 91 percent went toRepublican candidates . By undermining efforts to reduce greenhouse gasemissions, ExxonMobil prolongs US oil dependence and prolongs itsentanglements with often politically unstable oil producing countries.

In 2000 ExxonMobil spent over US$7 million on lobbying the USlegislative, ranking it number one spender in the oil and gas industry.The result of ExxonMobil's influence is that Exxon's words come out ofBush's mouth. After intensely lobbying Bush to ditch the treaty, whichhe did in March 2001, Exxon took out advertisements describing theKyoto Protocol as "fundamentally flawed" and "fatally politicized". Twomonths later Bush described the Kyoto treaty as "fatally flawed infundamental ways".

"If you try talking about Iraq and if you were not encumbered by thefear that your actions would be linked to ExxonMobil or the oilindustry, you'd be talking about oil issues," according to a Bushenergy advisor quoted anonymously in the Wall Street Journal.

Real security

The burning of oil and other fossil fuels causes climate change,which has the potential to radically damage entire ecosystems. Changingthe climate will affect everyone and everything on Earth, asacknowledged by the Intergovernmental Panel on Climate Change (IPCC).Established by the World Meteorological Organization and the UnitedNations Environment Programme, the IPCC is a group of more than 2000 ofthe world's top scientists.

The people of the US and other oil dependent economies will onlygain real security when they achieve energy independence. A combinationof energy efficiency and the transition to an economy based on cleanrenewable energy is the quickest way to achieve that goal. Even better,it's the cheapest way to do it.

A comparison of the projected costs of the war with the price of energy security is sobering.

White House projections for the costs of the war are typicallybetween US$90 billion and US$250 billion. Many commentators quoteUS$200 billion. By comparison the 1991 Persian Gulf War cost the US anestimated US$61 billion.

US$90 billion could provide clean renewable energy to the 1.6billion people, a quarter of the world's population, who have no accessto electricity. As well as helping to bring about sustainabledevelopment, it would prevent the deaths of the two and half millionwomen and children who die each year from the indoor pollution causedby cooking fires.

In the US$200 billion dollars could buy:

· US$2,000 solar system for each of the 100 million households in America.

· 10 million Honda or Toyota hybrid cars, which have a fuel efficiency of 40 miles per gallon.

They could replace the 10 million vehicles that get less than 20miles per gallon. Transportation currently accounts for over 30 percentof the US's annual C02 emissions. The fuel saved by switching would beapproximately 3.75 billion gallons or 14.2 billion liters of gas.

· 330,000 wind turbines. Based on the 1998 cost of a 600-kilowatt windturbine (US$500-650,000) and not assuming any scale of production costsavings6.

Why stop with energy?

· US $13 billion a year would feed allof the 30,000 children a day who die from hunger. · US $10 billionwould curb the spread of AIDS in Africa where 6,000 people a day diefrom the disease.