"Surging toward the holy oil grail", by Pepe Escobar

The following is an excerpt from the Asia Times Online which dares to posit a connection between the "surge" and the Petroleum Law. It also points out, correctly I think, that a large racheting up in the violence is inevitable over the next six months.

Grabbing those oil fields by the horn
Washington's successive divide-and-rule tactics - facilitating a possible genocide of Sunnis, contemplating a mass slaughter of Shi'ites, betting on a regional Sunni/Shi'ite war - never for a second lose sight of the riches of Iraqi. For Big Business, an Iraq eaten alive by Balkanization is the ideal environment for the triumph of Anglo-American petrocracy.

A new Iraqi oil law will most likely be voted on in Parliament in the next few weeks, before the arrival of Bush's 21,500 men, and it should be in effect in March. The law is Anglo-American Big Oil's holy grail: the draft has been carefully scrutinized by Washington, Big Oil and the International Monetary Fund, but not by Iraqi politicians. The profit-sharing agreements enshrined by the law are immensely profitable for Big Oil. And crucially, the law prevents any Iraqi government from nationalizing the oil industry - as the majority of Organization of Petroleum Exporting Countries (OPEC) member states did. In essence, it's a game of "if you nationalize, we invade you - again". So the law fulfills the early-2003 neo-con boast of "we are the new OPEC".

Iraq's petrodollars will turn to mush - or rather, as with Saudi Arabia, be recycled back to US banks. Security company Blackwater will make a killing "protecting" Iraqi pipelines. Bechtel and Halliburton will get myriad fat contracts to rebuild everything the US has bombarded since 1991.

But what's the use of an oil law in a 100-cadavers-a-day hellhole? Enter the escalation as a way of providing "stability". Whichever way the coming surge goes - ethnic cleansing of Sunnis, the battle of Sadr City - what matters is not the piling up of Arab Muslim (or American) bodies, but how much less cumbersome is the path toward the holy oil grail. Big Business will make a deal with anyone that facilitates the passing of the oil law, be it Maliki's Da'wa Party, the SCIRI, or - in a wildest-dream version - the Sadrists or al-Qaeda in Iraq.

The overwhelming majority of Iraqis, Sunni and Shi'ite, want the US out, and as soon as possible. A rape of Iraq's oil wealth enshrined by a Parliament-approved oil law would certainly lead to national unrest. For the moment it's fair to assume the US is taking no chances in its backroom deals, as the SCIRI's support for the new law, via Vice President Adil Abdul Mahdi, is practically assured. Da'wa must be in the process of being bribed to death.

But Muqtada is another story. He is close to some Sunni factions. They are getting closer. And crucially, they agree on being Iraqi nationalists who want the Americans out. There's a very strong possibility of the Sadrists joining the muqawama in the event the oil law is approved. Thus the preemptive, two-pronged Bush escalation on the war front - against both Muqtada and nationalist Sunnis.

The ever-expanding killing fields
Stenographers of the "clash of civilizations" may rejoice. But what really matters is what 1.5 billion people of the Muslim ummah are seeing. They see, on a given day, apart from made-in-USA bombs over Palestine, the US bombarding Arab Muslims in Iraq, Central Asian Muslims in Afghanistan, black Muslims in Somalia. Soon, perhaps, Persian Muslims will be included. Blowback is assured.

Referring to the hearings on Capitol Hill last month on the Lancet study compiling 655,000 civilian deaths provoked by the war on Iraq, University of Michigan Professor Juan Cole wrote in his blog that the US government "has committed cliocide" - after the Greek muse Clio, who watched over the course of human history. Cliocide will of course continue.

In Iraq, there are only two stark, inevitable options for the White House: cliocide, as in mass slaughter (of Sunnis and Shi'ites alike); or defeat (which is all but assured). Bush has chosen the first option. The upcoming battle of Sadr City will signal the descent of Iraq into absolute, abysmal, irreversible chaos. Bush, in imperial-Rome mode, can then call the desolation victory, and retire. Provided, of course, the oil law is in the bag.

Pepe Escobar's complete article in the January 12, 2007 Asia Times Online can be read here.