Naomi Klein says oil shock is the latest form of 'disaster capitalsim'

In her latest column Naomi Klein, author of the Shock Doctrine, shows how the current oil crisis is being exploited by large multinationals. Klein writes: "After years of back-room arm-twisting, Iraq is officially flinging open six of its major oil fields, accounting for around half of its known reserves, to foreign investors. According to Iraq's oil minister, the long-term contracts will be signed within a year. While ostensibly under control of the Iraq National Oil Company, foreign firms will keep 75 percent of the value of the contracts, leaving just 25 percent for their Iraqi partners."

'Invading countries to seize their natural resources is illegal under the Geneva Conventions. That means that the huge task of rebuilding Iraq's infrastructure--including its oil infrastructure--is the financial responsibility of Iraq's invaders. They should be forced to pay reparations. (Recall that Saddam Hussein's regime paid $9 billion to Kuwait in reparations for its 1990 invasion.) Instead, Iraq is being forced to sell 75 percent of its national patrimony to pay the bills for its own illegal invasion and occupation.'

According to Klein It's not just in Iraq where the rise in the price of oil is being exploited. 'Despite the Drill Here. Drill Now. Pay Less bumper stickers, drilling in ANWR [Arctic National Wildlife Refuge] would have little discernible impact on actual global oil supplies, as its advocates well know. The argument that it could nonetheless bring down oil prices is based not on hard economics but on market psychoanalysis: drilling would "send a message" to the oil traders that more oil is on the way, which would cause them to start betting down the price.

'Two points follow from this approach. First, trying to psych out hyperactive commodity traders is what passes for governing in the Bush era, even in the midst of a national emergency. Second, it will never work. If there is one thing we can predict from the oil market's recent behavior, it is that the price is going to keep going up regardless of what new supplies are announced.'

To read the article in full click the link below.

http://www.thenation.com/doc/20080721/lookout

Klein also invites people to support the campaign to allow the oil in Iraq to stay in the ownership of Iraqis. The website states that: 'Hands Off Iraqi Oil is a UK coalition opposing any foreign exploitation of Iraq's oil reserves that rips off the Iraqi people. Members include Corporate Watch, Iraq Occupation Focus, Jubilee Iraq, PLATFORM, Voices UK, and War on Want. Supporters include the Stop the War Coalition.'

The campaigns website is: http://www.handsoffiraqioil.org/[/q]

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