Reason for war? Gaddafi wanted to nationalise oil

Posted: March 28, 2011 in Uncategorized

All,

Muammar Gaddafi is certainly a controversial figure, to be sure, not the least in his own country.

This article in Pravda is suggesting that the real reason for the war in Libya is that Gaddafi had every intention of nationalizing the operations of foreign oil companies that were operating in the country, and distributing the revenues generated from the oil directly to the people.  Here are the details of that proposal, and what has come of them.

Meanwhile, understand that if this were the real reason for the U.S.-led adventure to depose a nationalist wanting to preserve the nation’s resources for the benefit of the people, it wouldn’t be the first time.  This is why Mosadeq was deposed in Iran in 1953.  And we all know where that ultimately led.  But if this article is true, we could see it all happening all over again – hooking up with Islamic extremists so we can get our hands on some oil.

The American oligarchs are slow learners.

Scott

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Reason for war? Gaddafi wanted to nationalise oil
25.03.2011

http://english.pravda.ru/hotspots/crimes/25-03-2011/117336-reason_for_war_oil-0/

On January 25, 2009, Muammar Al Gaddafi announced that his country was studying the nationalisation of foreign companies due to lower oil prices.

“The oil-exporting countries should opt for nationalisation because of the rapid fall in oil prices. We must put the issue on the table and discuss it seriously,” said Gaddafi.

“Oil should be owned by the State at this time, so we could better control prices by the increase or decrease in production,” said the Libyan leader.

These statements have worried the main foreign companies operating in Libya: Anglo-Dutch Shell, British Petroleum, U.S. ExxonMobil, Hess Corp., Marathon Oil, Occidental Petroleum and ConocoPhillips, the Spanish Repsol, Germany’s Wintershall, Austria’s OMV , Norway’s Statoil, Eni and Canada’s Petro Canada.

In 2008, the Libyan state oil company, National Oil, prepared a report on the subject in which officials suggested modifying the production-sharing agreements with foreign companies in order to increase state revenues.

As a result of these contract changes, Libya gained 5.4 billion dollars in oil revenues.

On February 16, 2009, Gaddafi took a step further and called on Libyans to back his proposal to dismantle the government and to distribute the oil wealth directly to the 5 million inhabitants of the country.

However, his plan to deliver oil revenues directly to the Libyan people met opposition by senior officials who could lose their jobs due to a parallel plan by Gaddafi to rid the state of corruption.

Some officials, including Prime Minister Al-Baghdadi, Ali Al-Mahmoudi and Farhat Omar Bin Guida, of the Central Bank, told Gaddafi that the measure could harm the country’s economy in the long term due to “capital flight.”

“Do not be afraid to directly redistribute the oil money and create fairer governance structures that respond to people’s interests,” Gaddafi said in a Popular Committee.

The Popular Committees are the backbone of Libya. Through them citizens are represented at the district level.

“The Administration has failed and the state’s economy has failed. Enough is enough. The solution is for the Libyan people to directly receive oil revenues and decide what to do with them,” Gaddafi said in a speech broadcast on state television. To this end, the Libyan leader urged a radical reform of government bureaucracy.

Despite this, senior Libyan government officials voted to delay Gaddafi’s plans. Only 64 ministers from a total of 468 Popular Committee members voted for the measure. There were 251 who saw the measures as positive, but chose to delay their implementation.

Given the rejection of the Committee, Gaddafi affirmed before a public meeting: “My dream during all these years was to give the power and wealth directly to the people.”

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Comments
  1. […] timetable faced internal resistance. According to Pravda.ru’s March 25, 2011 article titled, Reason for war? Gaddafi wanted to nationalise oil, he considered the option because of low oil prices at the time, […]

  2. […] oil, but his timetable faced internal resistance. According to Pravda.ru’s March 25, 2011 article titled, “Reason for war? Gaddafi wanted to nationalise oil,” he considered the option […]

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