Oil is a consideration for nations considering joining in the fight if the United States goes to war in the Persian Gulf, because the day after Saddam is removed, the Iraqi oil industry is up for grabs.
Of all of the reasons offered for removing Saddam, from terrorism to terrible weapons, oil is seldom mentioned. Yet critical to the American agenda is the fear an Iraq armed with nuclear weapons could dominate, or hold hostage a region through which flows an estimated 30 percent of the world's oil and natural gas.
Similar worries about the world's oil supply figured heavily in the 1991 Gulf War, and before that, concerns Iran might capture critical oil fields led the United States to support Iraq in the war between those two countries.
And now, oil is a consideration in the continuing drama at the United Nations. France and Russia, both with veto power in the Security Council, have extensive oil interests in Iraq.
The oil market of today is very different from that of a decade ago. The United States and other industrialized countries have more stockpiles of oil. The Gulf states are keeping oil supplies in reserve offshore, and new producers have come online in Africa, in Central Asia, and in Russia.
But none of them can compare with Iraq. The country sits on a sea of oil â with known reserves of more than 112 billion barrels.
The fundamental issue is, the day after Saddam is removed, the Iraqi oil industry is open for grabs, and it will depend upon the government of Iraq to decide how it will dispense that resource. Certainly, American companies would be in a very, very strong position to compete for the right.
Oil is such a huge prize, it could become a consideration as countries decide whether to join the fight. All five permanent members of the U.N. Security Council â Russian, China, France, Britain and the United States â have oil companies with a stake in who rules Iraq. Once the fighting starts, the countries that are not involved will be irrelevant. And it's not just because of the Iraqi oil. It's because of the oil in the entire region. Prudent parties want to be part of the postwar world in the Persian Gulf.
Even if Saddam is toppled and a pro-democracy government is installed, it will still take years before Iraq's oil industry can pump more than it does today â 1.7 million barrels a day, now 3 percent of world production. Pipelines are rusty and oil fields are in disrepair. After 20 years of neglect, it will take billions in investments to reap the returns on Iraq's reserves.
And there are other sensitive issues about the outcome of a U.S.-led invasion in the heart of the Middle East. The Arab governments are the way they are, in part, because the US hasn't pushed democracy, and one of the reasons they haven't pushed democracy is they've been willing to go along with whoever would sell the cheapest oil, however bad the government was.
Even without Saddam, instant democracy is not likely. For one thing, Saddam's iron rule has kept Iraq united â the real fear is that Iraq will splinter into rival groups once he is gone.
In contrast, the US retains a fervent hope: that a democratic Iraq would be an oil-rich ally with a government friendly to Washington.
So in summary, is it wrong for the US to aggressively pursue a course of action that is in its best interests and will promote stability to the Arab oil regions? Only a naive fool would say yes.
Yes, candle, it IS about oil. Next topic...