However, as this national oil law continually failed to pass through the Iraqi parliament, alternative developments ensued. As I posted before, these oil companies found a way around the problem: pressure the Federal Authority by making what is, according to Iraq's oil minister Hussain al-Shahristani, not, illegal regional deals. And it doesn't hurt to have some friends:
CBS/AP) Texas' Hunt Oil Co. and Kurdistan's regional government said they have signed a production-sharing contract for petroleum exploration in the Kurdistan region of northern Iraq, the first such deal since the Kurds passed their own oil and gas law in August.
Hunt, who is also on the board of Halliburton, has been a key fundraiser for President George W. Bush, who named him to the President's Foreign Intelligence Advisory Board.
Kucinich immediately weighed in on the matter, calling for a Congressional investigation:
“The recent oil deal between the U.S.-based Hunt Oil Company and the Kurdistan Regional Government (KRG) raises questions. Hunt Oil, a privately held oil company based in Texas and its founder, Ray Hunt, have close ties to Vice President Cheney and are large donors to President Bush.
“The deal also appears to undercut the goal of oil revenue sharing but is predictably consistent with the Administration’s attempt to privatize Iraqi oil assets. Both Hunt Oil Company and Kurdistan are strong allies with the Bush Administration.
“As I have said for five years, this war is about oil. The Bush Administration desires private control of Iraqi oil, but we have no right to force Iraq to give up control of their oil. We have no right to set preconditions to Iraq which lead Iraq to giving up control of their oil. The Constitution of Iraq designates that the oil of Iraq is the property for all Iraqi people.
“I am calling for a Congressional investigation to determine the role the Administration may have played in the Hunt-Kurdistan deal, the effect the deal will have on the oil revenue sharing plan and the attempt by the Administration to privatize Iraqi oil.
“The Administration misled Congress and the media into thinking that oil legislation was about ‘fair distribution.’”
Kurdistan kept up this pressure by making more deals the following week:
Tensions between Baghdad and the KRG grew as the yearlong oil law negotiations continued. They severely escalated after the KRG announced the PSC with Hunt Oil, the first U.S. firm to enter Iraq since the war and the first contract since the Kurds passed their own regional oil law. Iraqi Oil Minister Hussain al-Shahristani immediately called the deal "illegal" and said only the first four of the nearly 10 deals the KRG signed would be upheld.
The KRG responded in measure, saying Shahristani should either work harder to pass a federal law or resign. The KRG is a semiautonomous region in the north. Its own security force protects the area, which has seen little violence compared with the rest of the country since the war. As a result, it has had modest economic development and eyes the potential of the oil sector as a major step toward progress.
The latest development came today, from a UPI report, stating that Hunt did meet with White House Officials prior to the deal. And Kucinich addressed it:
“The Bush Administration has been pressing for the privatization of Iraq’s oil. This move by Hunt Oil, with its numerous connections to the President, would seem to advance that goal. The deal would seem to pressure the central Iraq government to capitulate, since the Hunt Oil deal with the Kurdistan Regional Government would be a precedent that the Iraq government could hardly ignore.
He also reiterated his concerns that privatizing iraq's oil will have, not only for Iraq, but the U.S. as well:
“I’m concerned that if we don’t reverse the “war for oil” policy, many negative consequences for the United States could follow. I think it would prevent any hope of an emerging peace process in the Middle East,” Kucinich said.
Earlier this year Congress passed and the President signed the supplemental Iraq funding bill that included a limitation on the U.S. government controlling Iraqi oil, which leaves private control of Iraq’s oil resources by U.S. oil companies on the table. Sec. 3301 states no funds can be expended by the United States Government “To exercise United States control over any oil resource of Iraq.” There is no similar prohibition on oil companies.
As usual, Kucinich is standing up for the people of America, as the world, rather than large corporations. And as, usual he is as forward looking and practical in his views, as his solutions:
“This Congress failed to prohibit oil companies from taking advantage of the U.S. invasion. I intend to close this major loophole by introducing legislation to prohibit U.S oil companies from gaining financial interests or financial control of Iraq’s oil resources,” Kucinich said.
On September 18, 2007, Kucinich sent a letter to Secretary of State Condoleezza Rice urging an immediate investigation into Hunt Oil Company’s recent production sharing agreement for petroleum exploration with Kurdistan.
“The war in Iraq is a stain on American history. Let us not further besmirch our nation by participating in an outrageous exploitation of a nation, which is in shambles due to the U.S. intervention,” Kucinich said in an hour-long speech on the floor of the House of Representatives on May 23, 2007.
Kucinich for President.
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