Oil, Oil, Oil

Did we ever really think this was about "freedom and democracy?"

Having lived in Saudi Arabia much of my life and being familiar with the history of the oil industry in that country this rings very true. The first oil companies in Arabia were Standard of California (Chevron) and later Texaco, Mobil and Exxon. In the early 1930s Standard of California signed an agreement with the Saudi King Abdel Azziz granting it exclusive rights to explore, drill for and produce oil giving the consortium of the four American oil companies which came to be known as ARAMCO, ownership of the Saudi oil. In turn ARAMCO paid the Saudis a royalty for each barrel they sold. In the beginning it was something on the order of 25 cents a barrel. Remember, oil was $2.50 a barrel back then. This arrangement lasted until the early 70s when the Saudi Government began a transition to full ownership of the county's natural resources, where ARAMCO, the company my father worked for, for nearly 30 years, became a contractor to the Saudi government to produce the oil.

The difference between the Saudi/American agreement in the 1930s and what is now occurring in Iraq is that in the 1930s no one knew for sure if there was oil in Arabia, not to mention there weren't 160,000 American soldiers in Arabia. The Americans took a very big risk and didn't find oil until after many millions in investments and a couple of years of drilling with the 7th well in Dhahran. Much of the oil in Iraq has been found and with present day techniques the rest won't be that difficult to find. The so called oil "sharing" law is a giveaway/payback to the American oil industry. One could argue and some of the more honest supporters of the war do, that since we spent our national treasure and blood to "secure" these oilfields we have a right to the profit from our "investment." I disagree. It belongs to the Iraqi people and unless we want to continue to fuel more anger, resentment, insurgency and terrorism against us for many years we should withdraw and let the Iraqi's run their own show. If they want to hire Chevron et. al to help produce this oil that's fine but don't pressure them at the barrel of a gun to grant ownership to non-Iraqi companies.