Contracts For Vampires

(Excerpted from Chapter 12: The Gulf Oil War: Big Oil & Their Bankers…)

As oil historian Daniel Yergin put it, “What we had before the war was a special relationship with Saudi Arabia.  Now we have a more special relationship”.  In 1988 ARAMCO announced its intention to pair up with its Four Horsemen parents in building downstream oil ventures.  On March 21, 1990 there was a low-profile meeting between ARAMCO executives and leaders of the world’s six largest engineering firms – Bechtel, Fluor, Foster Wheeler, MW Kellogg, Asea Brown Boveri and Lummus Crest.  At the gathering ARAMCO unveiled plans for a major expansion of the Saudi oil industry, yielding $10-$15 billion in construction contracts for the firms. The expansion increased refining capacity at the Bechtel-built Ras Tanura refinery by 25%, amplifying ARAMCO hegemony over world oil prices. [506]

Four months later, as US Ambassador April Glaspie was giving Saddam the green light to attack Kuwait, Fluor received the biggest ARAMCO contract, positioning the company to undertake any oilfield reconstruction in the Kingdom should the Iraq/Kuwait tensions spill over into Saudi Arabia. [507]  Fluor is an ARAMCO old hand.  They operate Fluor Arabia with the Saudi Juffali family and built two Big Oil petrochemical complexes at Jubail Industrial City. Kuwaiti officials had talked with Fluor before the Gulf War even began, but later chose Bechtel as lead contractor in rebuilding Kuwaiti oil infrastructure after Operation Desert Storm. [508]  Most of the damage to Kuwait’s oil facilities was not from Iraqi troops, but from US bombing raids which supposedly missed their mark.  Considering Bechtel’s political connections to the State Department and the billions it made rebuilding Kuwait, one has to wonder if the bombing was not intentional.

The ARAMCO expansion was underway.  In August 1990 the Saudis produced 5.3 million barrels of oil a day.  Throughout the Gulf War Saudi crude production increased, peaking at 8.5 million barrels a day.  The ARAMCO increase represented 50% of the world increase in oil production that occurred during the Gulf War. The Four Horsemen accounted for the rest, eager to turn cheap crude into expensive finished product.  RD/Shell greatly expanded its refinery at Tabangao in the Philippines in December 1990. [509]

The ARAMCO expansion paralleled a massive US military buildup which began in 1986 when Iran gained advantage in its war with Iraq.  Defense contractors led by Raytheon, manufacturer of the Patriot missile, received hours of free advertising as the world watched a CNN light show that allegedly showed Patriots knocking down Iraqi Scud missiles.  Later the Pentagon admitted that hardly any of the Scuds were hit.  Nevertheless, the stocks of defense giants Raytheon, Northrup Grumman and Lockheed Martin soared during the Gulf War.  The Bush Administration didn’t even count Gulf War expenses in its 1991 military budget, while the Pentagon set aside $16 billion in “off-budget post-war” expenses as well.  When the war began, the Pentagon played on the patriotic fervor gripping the nation to announce several new weapons systems.

The Pentagon awarded a $688 million dollar contract to Lockheed Martin for a mobile ground-based missile defense system known as THAAD.  Two battalions of THAAD ended up slightly over-budget costing $6 billion.  Rockwell International began testing its new X-31 fighter, while McDonnell Douglas offered up its X-32 at a price tag of $120 million each.  Lockheed Martin joined forces with Boeing and General Dynamics in procuring a $95 billion contract to develop its YF-22 Advanced Tactical Fighter.  The only flyable prototype crashed at Edwards Air Force Base in April 1992. [510] General Dynamics was given $2.9 billion for its Seawolf submarine program.  Boeing-Sikorsky got $34 billion to develop its LH helicopter.  McDonnell Douglas received $82 billion for its Tomahawk missile system.

Every day before noon the Pentagon was spending $550 million. One B-2 bomber cost the US taxpayer $2 billion, enough money to build 400 new schools.  The price of one F-18 would hire 1,000 new teachers.  The Saudis purchased over $13 billion in weapons before the Gulf War.  Now the US pressured the House of Saud and other GCC monarchs to buy more weaponry. [511]  The first post-Gulf War GCC contracts went to GE and Hughes Aircraft, a GM subsidiary.

The Four Horsemen have always made exorbitant profits in times of crisis.  The myth of scarcity is their friend, so by the 3rd quarter of 1990, with the threat of war looming, profits for Big Oil began to surge.  Spot crude prices shot up in August, but settled back by October.  Pump prices stayed high throughout the war.  By 4th quarter 1990, 19 of the top 20 oil companies showed a combined average profit increase over 4th quarter 1989 of 281%.

The top five US oil companies reported collective profits of $4.8 billion for the quarter.  Chevron Texaco, which supplied much of the fuel needed by US and allied forces during Operation Desert Storm, showed a profit increase of 651% for the quarter. [512]  Board member George Pratt Schultz must have been pleased.  In the first quarter of 1991, with the war in full swing, Exxon Mobil netted $2.4 billion, its biggest single quarterly profit since John D. Rockefeller founded Standard Oil of NJ in 1882.  The world’s eleven largest oil companies saw their profits increase 157% from 1989-1991.  Ten of the top twenty-three oil companies established new peak asset levels.

The war helped the Four Horsemen further diminish the power of independent challengers.  Sun Oil, American Petrofina, ARCO, Coastal, Unocal, Marathon and Pennzoil saw profits decline during the war. [513]

The Gulf War pulled the US out of a deep recession.  There had been much talk of waning US economic might.  Japan was seen emerging as world economic superpower, with the Asian Tiger economies playing a supporting role.  The US held competitive advantage in only three industries: oil, defense and engineering.  Each US economic engine was revved to mach speed by the Gulf War and the reconstruction of Kuwait that followed.

Dean Henderson is the author of five books:Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Das Kartell der Federal Reserve, Stickin’ it to the Matrix & The Federal Reserve Cartel.  You can subscribe free to his weekly Left Hook column @www.hendersonlefthook.wordpress.com

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One response to “Contracts For Vampires

  1. Hi Dean,

    Read in one you’re pieces about Jesus being Crucified – essentially by the illuminati- that organisation was founded by a Jesuit, as the narrative goes.

    Pope seems to be ” a bit selective” in his discrimination, lots on Allepo, not so much on Mosel. Is he in there clutches now? or can the ” Pope of the Holy See” ( Whole EC ?). Speaking in Washington DC. Help to curb them or is it too much to expect !

    Psalm 127 Verse One.

    Some post on the way to Mr Celente, kind of a welcome to Ireland gift.

    Rense not too bad, there’s much worse, buys into Islam sham story a bit too much though.

    Kind Regards
    J
    Peter

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