Antonia was on Democracy Now this morning...check in later to the DN site for the full transcript. She explains, (the obvious) fact that the Bush admin and his oil cronies are gouging the public with gas prices, and making huge profits based on the myth that we have high prices due to the war.http://thebushagenda.org/The Iraqi government has resolved a four-month political stalemate with the appointment of a new Prime Minister. Shiite leader Jawad Maliki will replace Ibrahim Jaafari. Jaafari stepped down after a lengthy dispute with Sunni and Kurdish leaders, who refused to back his leadership. Several analysts say the United States also played a pivotal role in replacing Jaafari. Steven Simon, a Senior Fellow for Middle Eastern Studies at the Council on Foreign Relations, said: "[The Iraqi government] wouldn"t have consented to it if it weren't for the very heavy pressure that the United States was bringing to bear."Our guest today is an author who has been tracking the Bush administration's goals in Iraq since the invasion. Antonia Juhasz has written about them in a new book. It's called "The Bush Agenda: Invading the World, One Economy at a Time." The book tracks the radical neo-liberal economic program the Bush administration has tried to impose on Iraq, which threatens to leave Iraq's economy and oil reserves largely in the hands of multinational corporations. It's an agenda, the book says, that the Bush administration is trying to bring to all corners of the globe.
[Excerpt from the interview]
AMY GOODMAN: We’re talking to Antonia Juhasz, author and activist, wrote The Bush Agenda: Invading the World, One Economy at a Time. Now, gas is over $3 in many places. What's the connection?
ANTONIA JUHASZ: Well, here's the connection. The Bush administration is the most beholden administration probably in American history to the oil and gas industry. This is the first time in history that the President, Vice President and Secretary of State are all former energy company officials. In fact, both Bush and Rice have more experience as energy company officials than they do as government leaders. Cheney outbeats them. He’s spent 30 years working for government. However, his five years at Halliburton have been so profitable that you might say that his Halliburton years outweigh their oil years, because Bush was a very bad oil company executive. But their links to the oil sector are deep.
The oil industry provided more than 13 times more money to the Bush-Cheney ticket in the first round of elections than it did to his competitor, nine times more in the second. And this industry has been absolutely coddled by the Bush administration: enormous tax subsidies, deregulation, and, I would argue, a war waged on their behalf.
Now, there's two intimate connections between the war and the price of gas. But first, I think it’s very important for people to understand that the vertical integration of the oil industry, which has been absolutely exacerbated under the Bush administration. For example, ChevronTexaco and Unocal merging into one company, the completion of Exxon and Mobil's merger, all of these little companies merging into enormous behemoths, so that you have ExxonMobil being the company that has received the highest profits of any company in the world, over the last two years, ever in the history of the world. That is because of the vertical integration and monopoly power of these companies. That means that they control exploration, production, refining, marketing and sales.
The price of oil at the pump is about 50% the price of a barrel of oil, about 25% taxes, and then the rest is marketing and just the price determined by the company at the pump. So that means that about 18% to 20% is absolutely determined by the oil companies themselves and governed by the companies themselves. So they could reduce the price of oil and reduce their profit margin, or they could jack up the price of oil and increase their profit margin. They have chosen to do the latter.
And one of the things that has helped them do that is, first of all, the United States is receiving a tremendous amount of oil from Iraq. Oil is down in overall export and production, but not tremendously so. We were -- at prewar was 2.5 million barrels a day. We’re now at about 2 or 2.2 million barrels a day. But 50% of that, on average, is coming to the United States, and it’s being brought to the United States by Chevron and Exxon and Marathon. The myth of dramatically reduced supply has helped them create an argument to the American public, which is, you know, it’s a time of war, we’re suffering, gas prices are going to go up, everyone needs to come in and support this because this is war. Well, that's just not true. The companies are using that as a myth to help make it okay for them to receive these utterly ridiculous profits.
