The US in the Middle East:The US in the Middle East: The Business of Intervention The Business of Intervention

Saeed A. KhanSaeed A. Khan

Wayne State UniversityWayne State University

The EconomistThe EconomistJune 6, 2015June 6, 2015

Middle East in the Mandate Era

King Saud and FDR (Feb. 1945)

US-Saudi Relations: A Timeline

• 1932: Kingdom of Saudi Arabia (KSA) established • 1933: Diplomatic relations between US and Saudi Arabia established• 1933: Oil exploration begins• 1938: Oil discovered at Dhahran (eastern Saudi Arabia)• 1938: Oil Production begins under Arabian American Oil Company

(ARAMCO)• 1960: Saudi Arabia becomes founding member of OPEC• 1972: Saudi Arabia gains 20% stake in ARAMCO• 1980: Saudi Arabia gains full ownership of ARAMCO• 1991: US uses Saudi territory for Gulf War strikes on Iraq• 2001: 9/11 attacks; 15/19 attackers are Saudi nationals

The US Enters Iranian Oil Industry: The US Enters Iranian Oil Industry: Commission for a CoupCommission for a Coup

• 1908-1951: Anglo-Iranian Oil Corporation (AIOC)…later 1908-1951: Anglo-Iranian Oil Corporation (AIOC)…later became British Petroleum(1954)became British Petroleum(1954)

• 1951-1953: Iran nationalizes oil industry1951-1953: Iran nationalizes oil industry• 1953: Operation Ajax: Joint CIA/MI6 instigated coup 1953: Operation Ajax: Joint CIA/MI6 instigated coup

deposes PM Mossadegh; reinstalls Shahdeposes PM Mossadegh; reinstalls Shah• 1954: US pressures Great Britain into oil consortium 1954: US pressures Great Britain into oil consortium

(Iranian Oil Partners, Ltd.):(Iranian Oil Partners, Ltd.):1) British Petroleum (40%)1) British Petroleum (40%)2) Gulf Oil (8%)2) Gulf Oil (8%)3) Royal Dutch Shell (14)3) Royal Dutch Shell (14)4) Total (6%)4) Total (6%)

5) Std. Oil CA (Chevron); Std. Oil NJ (Exxon); Std Oil 5) Std. Oil CA (Chevron); Std. Oil NJ (Exxon); Std Oil NY (Mobil); Texaco (each received 8%)NY (Mobil); Texaco (each received 8%)

Iraq, the US and OilIraq, the US and Oil

• 1925: 75 year Oil Concession to Iraq Petroleum Company

• Ownership of Iraqi oil: 23.75% US,

• 23.75% UK• 23.75% Frane• 23.75% Netherlands• 5%: Calouste Gulbenkian

(r); Armenian businessman

• Iraq got no ownership over its own oil; but to receive modest royalty payments at specified sum per ton

US Corporate Shopping Spree in Iraq post-2003

• $12 Billion US taxpayer money + $12 Billion Iraqi taxpayer money paid to seven US companies to “fix up the place,” including

• Halliburton (HQ in Dubai since 2007)

• Bechtel• KBR• Fluour• Parsons

Profit from 2003 Iraq War

Costs of 2003 Iraq War

• 650,000 Iraqis killed (200,000 by direct violence)• 1.5 – 2.5 million injured• 3.5 - 5 million displaced• Total Population of Iraq: 26 million (2003)

• 4,475 US troops dead• 32,331 wounded• Veteran suicide rate: 22/day• Financial Costs of War (US)

– $1.7 trillion military expenditure– $500 billion for veterans benefits– $6 trillion over 4 decades

American Sniper: By the Numbers

• Movie Budget: $59 million• US Domestic Box Office: $348 million• International Box Office: $194 million• Awards: 6 Oscar Nominations

– Best Picture– Best Actor– Best Adapted Screenplay– Best Film Editing– Best Sound Mixing– Best Sound Editing (Winner)

US-Iran Nuclear Deal = More Arms Sales

• Saudi Arabia: $80 Billion• UAE: $23 Billion• Qatar: $11 Billion

– 2011: Boeing opens office in Doha

– 2015: Lockheed-Martin opens office in Doha• CEO Marylinn Hewson contends that L-M needs to boost global arms sales from

25-30% total revenue to offset reduction in Pentagon orders post-9/11

• Israel: Additional $1.9 Billion (beyond annual $3-4 Billion) to mollify Iran deal anxieties

• Source: “Sale of U.S. Arms Fuels the Wars of Arab States,” New York Times, April 18, 2015

Defense Contractor ROI’s (2011-2014)

• Northrup Grumman 114%

• Raytheon 114%

• Lockheed Martin 149%

Defense Lobby Expenditures (2014)

• Total Lobbying Expenditure: $127,655,939

• Total Number of Clients: 230

• Total Number of Lobbyists Reported: 823

• Total Number of “Revolvers”: 565 (68.7%)

• Source: www.opensecrets.org

Defense Lobby Contributions to Federal Candidates (2014)

“Black Budget” for Secret Intel Programs (2013)

• Total Expenditure: $52.6 Billion– Does not include much larger intelligence and counterintelligence budgets

• Total Number of Spy Agencies: 16

• Total Number of Employees: 107,035– Does not include >1 million employed by military and national security law

enforcement agencies

• Annual Growth/ROI for Homeland Security Companies: 12%• Source: “Big money behind war: the military-industrial complex”, Al Jazeera, January 11, 2014

Blackwater’s Second Wind

• 2011: Establishes 800-member mercenary army in Abu Dhabi (UAE)

• Renamed: Reflex Responses (R2)

• $529 Million contract paid by UAE Crown Prince, Sheik Mohamed bin Zayed al-Nahyan

• Mercenaries from Colombia, Venezuela, South Africa (One rule: No Muslims allowed)

• Ostensibly, hired to “protect” oil pipelines, skyscrapers and royal palaces

Senate War Hawks

Sen. Lindsey Graham (R-SC) Sen. John McCain (R-AZ) Received $176,300 from Defense Contractors (2013)

Contributors to Sen. Lindsey Graham

Historical Evolution of Western Power

Church

Nation-State

Corporation

Promotion of Western “Values”

Respect for Sovereignty*

Respect for Territorial Integrity*

Respect for Self-Determination*

*Except for Others