[David Cole, head of the Centre for Automotive Research in Detroit], with the support of leading US auto industry executives, is expected to call on Congress to set a lower limit for the price of oil. 'If we set a floor of $50 a barrel the investment the big auto manufacturers are making in alternative technologies will be protected,' he said. 'If not they will fail.'(The Observer, Sunday 8 June 2008 http://www.guardian.co.uk/business/2008/jun/08/commodities.oil)
Palast Reported Chavez's Offer Early In 2006
Watch the video from Palast Archives on Google.
Amy Goodman and Greg Palast Discuss Why We Must Control Iraq's Oil: It's the Saudis, Stupid!
Democracy Now! May 15, 2006
GREG PALAST:Yeah, that’s why I wrote a book, because it does link the whole thing together. I mean, I just got back from meeting with Chavez, as you know, and you showed our interview a few weeks ago. He’s offered the U.S. $50-a-barrel oil. That’s a third off of what we’re paying right now. Now, you would think our president would be down in Caracas kissing Hugo Chavez’s behind and saying, “Thank you, thank you for dropping the price of oil by a third, and let’s make a deal,” because Chavez wants a deal.
But he’s not doing that, our president, even though the high prices are costing about a million jobs right now. And the reason he’s not is that what Chavez will not do is that Chavez will not return the money. It’s not about petroleum, it’s about petrodollars, as I explain in the book. In other words, when George Bush rides around King Abdullah in his little golf cart on the Crawford ranch, he’s not trying to get Abdullah’s oil. Abdullah can’t drink the stuff. He’s got to sell it to us and Japan. But Abdullah takes the money back from the — when you fill up your SUV, you give your money to Saudi Arabia, the big oil companies, Saudi Arabia. But then he returns it the form of petrodollars, and that is what is funding George Bush’s mad spending spree.
We have a president who has racked up $2 trillion in extra debt, you know, stone sober, apparently. And someone’s got to pay for that. And basically we’re paying for it by effectively an oil tax, which is returned to us, because the Gulf states and our other trading partners are now buying up $2 trillion in U.S. Treasury bonds and debt. So, in other words, they’re recycling the money back and paying for George Bush’s spending spree on ending inheritance taxes, you know, several wars, etc.
Now, Hugo Chavez says, “I’ll give you cheap oil, not only to the poor, but to everyone. But I’m not giving you back the money. That money is going to stay in Latin America to build our nations.” And he just withdrew $20 billion out of the U.S. Federal Reserve. You have to understand, this is a punch in the face of the U.S. administration, far more than withholding oil, withholding and withdrawing petrodollars, as I explain in the book, and that’s why you have that little nice floater from — balloon thrown out by Reverend Robertson, Pat Robertson, saying “Hugo Chavez thinks we’re trying to assassinate him, and I think we ought to just go and do it,” because they have got to get that — it’s not that they need that oil, they need that oil money. And if they can’t get it, they have to eliminate Hugo Chavez.
AMY GOODMAN: Is the war in Iraq a war for oil?
GREG PALAST: Is the war in Iraq for oil? Yes, it’s about the oil, but not for the oil. In my investigations for Armed Madhouse, I ended up with a story far more fascinating and difficult than I imagined. We didn’t go in to grab the oil. Just the opposite. We went in to control the oil and make sure we didn’t get it. It goes back to 1920, when the oil companies sat in a room in Brussels in a hotel room, drew a red line around Iraq and said, “There’ll be no oil coming out of that nation.” They have to suppress oil coming out of Iraq. Otherwise, the price of oil will collapse, and OPEC and Saudi Arabia will collapse.
And so, what I found, what I discovered that they’re very unhappy about is a 323-page plan, which was written by big oil, which is the secret but official plan of the United States for Iraq’s oil, written by the big oil companies out of the James Baker Institute in coordination with a secret committee of the Council on Foreign Relations. I know it sounds very conspiratorial, but this is exactly how they do it. It’s quite wild. And it’s all about a plan to control Iraq’s oil and make sure that Iraq has a system, which, quote, “enhances its relationship with OPEC.” In other words, the whole idea is to maintain the power of OPEC, which means maintain the power of Saudi Arabia.