"However, this is not the whole story. In April
2006, Ahmadinejad paid a little-reported visit to Neyshabour in
Khorassan. This top-secret and heavily protected facility, like other
such sites in Iran ringed by air defense missiles and artillery, is
designed to eventually run as many as 155,000 centrifuges, enough to
enrich uranium for three to five nuclear bombs a year. Once Neyshabour
is operational, then without significant outside help from Russia or
China, Iran would still be two to three years away from becoming a
genuine nuclear power and perhaps five years from the operational
deployment of a nuclear weapon [assuming no technical or supply
problems of any significance arise]. " See Richard Bennett's second
article in the bibliography.
Iran's progress towards enriched uranium is more advanced than
previously deduced but there is still a long, technologically
challenging, road ahead before enough enriched uranium can be produced
for even one bomb. If the present state of Iran's nuclear weapons
capability appears, as judged by this month's surprise inspection, to
not present a serious immediate threat or to be inducing a high level
of fear in neighboring states, what then is the serious military threat
posed by Iran as coagulated by the United States really all about ? Why
does the United States present a public face of anxiety if not outright
fear, and a threat assessment within which an attack upon Iran's
nuclear industry is not ruled out ?
A subject that is rarely discussed is that Iran may already possess
Weapons of Mass Destruction that are not nuclear but drawn from an
aging stock of chemical weapons and nerve gases. Iran's short and
medium range missile program is a limited success and there is some
delivery capability. At the end of the day an old missile that missed
its target but nonetheless delivered a potent biological weapon is very
dangerous but there is almost no discussion of this problem in the
press. '24' and a handful of real world biochemical weapons events
inside the United States aside, has the neocon establishment judged
such weapons as not scary enough to capture the attention of either the
public or the military? The question must once again be asked, what are
the United States real objectives in the current confrontations if
there is no immediate or medium term nuclear threat emanating from
Iran?
Of Madmen and Pandora's Box 1
America has two carrier battle groups in offshore waters with a third for backup or rotation assignments. These
naval battle groups built around nuclear powered aircraft carriers while
not invincible to asymmetric warfare strategies, present a formidable defense. Accordingly,
the Iranian navy
has developed 'asymmetric' protocols for attacking United States
carrier battle groups. Trapping US forces in the Persian Gulf and then
unleashing naval swarming tactics would present serious problems. The
Iranian Air Force is not trivial and in spite of
ongoing problems at every material level,
it would inflict casualties upon the United States Air Force. However,
the bottom line is that the United States would prevail, the mismatch
between respective armed forces is very, very large.
Each
carrier battle group
has enough firepower to savage the Iranian nuclear industry and set
back its activities and development by a decade at least, if not
obliterate the program entirely. Furthermore, several ships of the
rarely mentioned
United States nuclear powered submarine fleet
are assuredly in the Persian Gulf region and their firepower from
Tomahawk Cruise Missiles is truly awesome. A comprehensive attack on
the Iranian nuclear industry would cause serious collateral damage
throughout much of the country as there are more than 300 potential
targets. Damage to essential infrastructure is unavoidable and there
would be, many civilian casualties. Iran would be provoked to
immediately close the Straits of Hormuz - through which moves
16mbbl/day. Blocking of these waters by sinking significant ship
tonnage and then lighting surface oil fires would not be difficult.
Such an attack and Iran's response would further, if not completely,
isolate the United States from the world community. There is little
doubt that a global oil and gas supply crisis would quickly follow,
that would quickly plunge the United States and Europe into their worst
economic depressions in history. The United States would free fall to a
second rate power, seriously crippled by inflation, oil and gas
rationing, and very high costs of military and civilian goods and
services, costs too high for the citizenry at large to easily digest.
The dollar would be severely weakened and no longer the single standard
and currency of international trade.
Oil at $150/bbl might become a reality. not a prediction that is
quickly dismissed as a fantasy of 'leftists' obsessed with doom day
scenarios. However,
oil pricing is not a simple matter.
There is a complex relationship between the price of crude at the well
head and that of oil derived products, runaway consumerism in the
United States, lack of USA refining capacity and corporate deceit and
market manipulation. Nonetheless, extreme oil prices are very possible.
Oil at $150/bbl would cause military budgets to be chained to levels
that slow training, maintenance and development of human and
technological assets to a small fraction of present day levels. China
would likely dominate the international scene and alone achieve and
retain super power status. Russia and India would continue to have
robust economic growth, their costs of both civilian and military
infrastructure assets, goods and services would be manageable and
balanced. What could possibly induce America's neoconservative
imperialists to open a Pandora's Box of such cascading crises?
Iran's Black Gold, Oil and Natural Gas
Iran's oil reserves are considerable and they provide 80-90% of export
earnings for the country and over 40% of the government budget. Iran is
OPEC's second largest oil producer, operates OPEC's largest tanker
fleet and has proven oil reserves amounting to 10% of the world total.
Note that the vast majority of Iran's oil reserves are located in the
southwestern Khuzestan region which is near the Iraqi border. Current
crude oil production capacity is about 3.8 million bbl/d which is
approximately 60% of 1974 levels. The effects of two wars (Iran-Iraq,
Gulf War,) economic sanctions and government mismanagement since the
1978/9 revolution are thereby highlighted. According to the DOE,
"Iran's existing oil fields have a natural decline rate estimated at 8
percent onshore and 10 percent per year offshore. The fields are in
need of upgrading, modernization, and enhanced oil recovery (EOR)
efforts such as gas reinjection." EOR is particularly important as 60%
of Iran's oil fields are more than 50 years old. Current recovery rates
are approximately 2/3 of the industry world wide average. Iranian oil
exports are managed through complicated buy back and swap contracts,
Turkmenistan and Kazakhstan figure prominently in the latter
arrangements. The Iranian constitution prohibits the granting of
petroleum rights on a concessionary basis or direct equity stake
Iran exports crude from four large terminals of which the famous Kharg
Island is by far the largest and whose capacity is under expansion.
Iran's' largest oil buyers are Japan, China, South Korea and Italy in
that order. The Azadegan field in Khuzistan (adjacent to Iraq border)
discovered in 1999 is the largest oil reserve find in 30 years. Japan
will figure prominently in its development but there are still
disagreements over mine clearing. First production of medium sour crude
might come online in 2009, or 2010. A very large, shallow water
offshore discovery at Dasht-e Abadan near the port city of Abadan may
be of a magnitude comparable to Azadegan. Regarding the important oil
discoveries in the Caspian Sea, Iran is the only country that can
provide a pipeline route between the Caspian Sea and the Persian Gulf.
This Bibliography indicates some of the important foreign players now
active in the development of Iran's oil reserves.
Iran is an importer of gasoline due to a shortage of refinery capacity,
and the price of gasoline is kept artificially low by government
subsidies that are now up for review amidst contentious arguments.
Ironically, Iran is the second largest importer in the world of
gasoline after the United States.
Iran has an estimated 970 trillion cubic feet (Tcf) in proven natural
gas reserves, second only to Russia. According to DOE data, perhaps 62%
of these gas fields have yet to be developed. Natural gas accounts for
half of Iran's domestic energy consumption and prices to both
industrial and private customers are kept artificially low by the
government. Iran's largest natural gas field is South Pars and it has
already attracted over 15 Billion USD for development but progress has
been slowed by the presence of sulphur mercaptans in the crude oil,
contractual arguments and politics. Nonetheless the first of 28 phases
came online in November 2002, with four additional phases in production
by 2006. Norway, South Korea, Royal Dutch Shell and Spain are important
foreign partners in the ongoing development of South Pars. "The Islamic
Revolutionary Guard Corps (IRGC) will build the IGAT-7 natural gas
trunkline, to take natural gas from Assaluyeh to Iranshahr and also to
the Pakistani border", a circumstance that illustrates the complex
interface between Iran's Islamic politics and the energy industry. Then
again, perhaps the IRGC only wanted, and obtained, a long term and
secure asset with good ROI.
Iran wishes to greatly expand its natural gas exports. Present and
potential new buyers include Ukraine, Europe, India, Pakistan, Armenia,
Azerbaijan, Georgia, Taiwan, South Korea. China is moving aggressively
on new buy and project construction contracts. Iran was the first
country in Asia to export gas by pipeline, and has more than 4,000km of
important pipelines that span the country. Expanded natural gas product
could be exported via pipeline, LNG tanker or planned terminals. In
2002, Iran and Turkey opened a long delayed major pipeline. Exports to
Turkey in 2007 could reach 960 million cubic feet per day by 2007. Iran
has important plans to extend gas imports into northern Greece via a
pipeline extension from Turkey, and from there into Europe via Bulgaria
and Romania. Alternatively, an undersea pipeline to Italy is under
study. Yet Iran's northern regions are far from the producing gas
fields. In December 1997, Turkmenistan launched the $190 million
Korpezhe-Kurt Kui pipeline to Iran, the first natural gas export
pipeline in Central Asia to bypass Russia, and intended to serve Iran's
north. There are several additional large pipelines in the planning
stages in which Iran is a partner and each will have great influence on
regional and continent wide energy supplies. Those involving India and
Pakistan are particularly important's: see bibliography below.
U.S. sanctions limit Iran to non-U.S. liquefaction technology, which is
significant as most LNG plants use processes developed by U.S.
companies. Currently, Iran has no LNG facilities.
Of Madmen and Pandora's Box 2
Well then, why consider an attack on Iran's nuclear industry, when that
action will trigger highly destructive blow back? Why does the Bush
administration not discuss similar plans for North Korea, a highly
dangerous, rogue state? ( Because any aggressive move against North
Korea would precipitate an invasion of South Korea and nuclear armed
missiles launched at Japan.) Why is the threat to regional, if not
world stability, of the Israeli nuclear weapons capacity never
discussed ? (Because Israeli is a powerful ally, regional proxy for US
policy and forever glued to our interests.) Likewise the nuclear
industries and weapons programs of India and Pakistan receive little
scrutiny.(Pakistan is an 'official ally' in the war against terrorism
yet Mushareff is not entirely trustable or in control of his country.
Pakistan's military intelligence has long aided the Taliban and by
implication made life a bit easier for Al Qaeda. India is also an ally,
a genuine stable democracy and quietly provides an important
counterweight to Pakistan.)
Iraq was singled out for invasion because of its prodigious oil and gas
reserves. Iran may have been placed in 'America's gunsights' for the
same reason, such is the thesis of these articles. . As always United
States foreign policy is uneven, distorted and forever favors self
serving, strategic interests - read military-technological-corporate
interests. I believe the motivation for the Bush/Cheney team to
seriously consider an air attack on Iran's nuclear industry is strong,
and the rationale to do so is similar to that which created an invasion
of Iraq. First steps in the protocol are familiar and based upon
deceit, lies and false intelligence: a) that Iraq is the major source
of the most powerful bombs used against American forces in Iraq
(false); b) that Iraq finance and intelligence agents influence Islamic
movements in many countries from Palestine to Iraq and beyond (true);
and c) that Iran's nuclear enrichment program is far advanced, the
Iranian motivation to use such weapons on American interest is high
(false).
Following upon this stew of half truths and deceit, it follows that
Iran could be crippled for a very long time, and American energy needs
well served, if the Iranian natural gas and oil industries were under
American control. That domination need not be invasion and occupation
of the country by land as was the case in Iraq. Such a military plan
has been judged by all experts as impossible to execute with success as
Iran has a large military, effective national air force and coastal
navy. Bogged down in the Hell of Iraq, the United States has few troops
available for a land invasion of Iran. Rather, draconian control of
Iran's Black Gold could be exerted via several of the largest
international oil companies whose interests coincide with American
government priorities. Such a coalition might also attempt to bring in
the IMF as a partner. After an American attack upon Iran's nuclear
industry, this coalition would economically and financially 'subdue' an
eviscerated and hapless government situated within a society torn by
political and social divisions, and struggling with the nation wide
destruction of essential infrastructure - the damage left by a brief
and almost exclusively air war with the United States. Does such a plan
sound familiar?
Does the size of Iran's oil and gas reserves and associated
transcontinental pipelines justify such a mad plan? Assuredly they do
if one is infected with extreme hubris, imperialistic mania and a lust
for power that goes beyond all reason. Successful execution of such a
plan would see the United States and a consortium of international
energy companies in complete control of Iran's oil, gas and nuclear
industries (including long distance pipelines) that are critical to
regional and continent wide distribution of oil and gas. Add that
resource control to that could be locked down by a successful
subjugation of violence in Iraq, and the quantity of oil and gas
reserves now controlled by imperialistic America is impressive. Ah, but
what if American troops are finally withdrawn from Iraq before the
killing fields of that country can be smothered and controlled?
An air attack upon Iran's nuclear industry will cause unavoidable
collateral damage. It will set loose several horsemen of a modern day
apocalypse. Iran will completely blockade the Strait of Hormuz and very
likely will unleash extremely dangerous, terrorist networks long
established throughout the Middle East and Europe. As those 'horsemen'
wreak havoc across Mesopotamia and beyond, terrorism attacks and
spectacular oil/gas prices will cripple several of the world's most
important economies. The USA economy will implode, riding as it does
upon the last months of an unsustainable housing boom based in 'false
credit and excessive debt', complete denial about the size and domestic
effects of the military/defence budget and the extravagant printing of
money by the US Federal Reserve, Cascading effects would seriously
effect many other countries large and small, and the world changes in a
dramatic and cruel manner. Visit
Global Economy at Asia Times
where there are good articles that speak directly to the complex,
interplay between the US economy (consumerism, debt, corporate market
manipulation etc) and oil pricing.
In conclusion, let us acknowledge that
Admiral William Fallon,
chief of CENTCOM, blocked deployment of a third carrier group to the
Persian Gulf this past winter. The Admiral's views on the Bush
presidency madness are very clear. "Fallon's refusal to support a
further naval buildup in the Gulf reflected his firm opposition to an
attack on Iran and an apparent readiness to put his career on the line
to prevent it. A source who met privately with Fallon around the time
of his confirmation hearing and who insists on anonymity quoted Fallon
as saying that an attack on Iran "will not happen on my watch".
Asked how he could be sure, the source said, Fallon replied, "You know
what choices I have. I'm a professional." Fallon said he was not alone,
according to the source, adding, "There are several of us trying to put
the crazies back in the box." Admiral Fallon was nominated to this
position by Secretary of Defense, William Gates. We have here rare
public disclosure about a specific event that pertains to the almost
invisible 'revolt' of several of the highest ranked military officers
in the nation as they struggle to contain some of the worst aspects of
neoconservative imperialism's latest incarnation.
Core Bibliography (First reads should be * articles.)
America's Iran policy and Iran's Possible Response
1.
*Fixing' Iran Intelligence - by John Prados;
2a,b.
U.S. puts squeeze on Iran's oil fields - by Kim Murphy; ....
Neo-cons drive Iran divestment campaign - by Jim Lobe;
3a,b.
Can Europe End the Lose-Lose Game with Iran? - by Trita Parsi....
Damascus moves to center stage - by Sami Moubayed;
4.
UK: Ministers tell Centrica not to buy Iranian gas - by Oliver Morgan
5a,b.
*How Iran will fight back - by Kaveh L Afrasiabi; ....
Ahmadinejad says Iran will retaliate - by David R. Francis;
6a,b.
* Is Imperial Liquidation Possible for America?
- by Chalmers Johnson. Although Iran is not mentioned in this brilliant
essay, here is the anatomy laid bare of the lethal contextual envelope
that surrounds all United States foreign policy. ....
*Commander's veto sank Gulf buildup. "There are several of us trying to put the crazies back in the box." - by Gareth Porter;
7.
* Iran: A careful look before a US leap - by Richard M Bennett;
8a,b,c,d.
Iran war 'could triple oil price' - BBC News; ....
Iran issues stark warning on oil price - by Robert Tait; ....
Iran leaves options open on 'oil weapon' - by Hiedeh Farmani; ....
Why Iran oil cutoff could be suicidal - Aljazeera and agencies;
Iran's Nuclear Industry
9.
*Iran - Nuclear Facilities - globalsecurity.org;
10.
*Iran all bluff and bluster, but no bomb - yet - by Richard M Bennett;
11.
*Atomic Agency Concludes Iran Is Stepping Up Nuclear Work - by David E. Sanger;
12a,b,c.
The myth of an Israeli strike on Iran - by Kaveh L Afrasiabi; ....
To Destroy Iran’s Nuclear Bomb Program, 350 Targets Must Be Hit - DEBKAFile;....
Will They Nuke Iran? - by Alexander Cockburn;
13.
The Iran-OMV deal is yet another strike against the sanctions regime - by Kaveh L Afrasiabi;
14.
A nuclear (mis)adventure in Isfahan - by Pepe Escobar;
15.
Iran Attacks an Iraqi Nuclear Reactor - Institute for National Strategic Studies;
16a,b,c.
Israel's Osirak Attack - Institute for National Strategic Studies; ....
Israeli air strike against the Iraqi Osirak nuclear reactor - Wikipedia; ....
Osirak: Threats real and imagined - by Patrick Jackson.
Black Gold and Natural Gas in Iran
17.
*DOE Country Analysis - Iran - Energy Information Administration (US Gov);
18.
*Iran's Oil Reserves by GlobalSecurity.org;
19.
Petroleum: Iran's black curse - by Vahid Isabeigi;
20.
Iran Oil Minister: Iran Not Supplying Extra Oil to the Market - by Hashem Kalantari;
21.
Iran Oil Revenue Quickly Drying Up, Analysis Says - Associated Press;
22.
Iran: Khuzestan Arab insurgents hit oil target for the first time. - DebkaFile;
... Recent international partnerships (many selections from rigzone.com)
23.
India finds a $40bn friend in Iran - by M K Bhadrakumar;
24.
Oil Cos, Seeking Reserves, See Iran as Long-Term Bet - by Sally Jones;
25.
Upgrade speeds Soroosh early production - by Rajiy Lekhy;
26.
Japan, Iran sign major oil deal, US dismayed - by Richard Hanson;
27.
Iran Oil Min: Deal With Sinopec[China] for Yadavaran Due in Weeks - by David Winning;
28.
Norway Says Energy Issues Discussed with Visiting Iranian Minister - by Elizabeth Cowley & Spencer Swartz;
29.
Addax Reports Northern Iraq Discovery - Addax Petroleum Corp;
30.
India finds a $40bn friend in Iran - by M K Bhadrakumar;
31.
Petrobras to Invest $470M in Iran's Caspian Sea - by Bernd Radowitz;
32.
Iran will grant Total, Shell and Repsol upstream development contracts in the Gulf's giant South Pars gas field - Reuters;
33.
Iran Sets March Deadline on Total's Gas Field Invest - by Hashem Kalantari;
34.
Costs Threaten Total-Petronas Iran LNG Project - by Anne-Sylvaine Chassany;
35.
Shell defies American pressure and signs £5bn Iranian gas deal - by Terry Macalister;
... Pipelines
36.
The geopolitics of pipelines - by Paola Ceragioli and Maurizio Martellini;
37.
*Iran takes over Pipelineistan - by Pepe Escobar;
39.
Iran, Armenia open gas pipeline - BBC News.
Core Bibliography (First reads should be *articles.)
America's Iran policy and Iran's Possible Response
40. a,b,c, d. Robert Gates, the new American Secretary of Defense occupies the
most powerful Cabinet position in the United States government. He will have
deep influence upon America's policy towards Iran.
After
Rumsfield, a New Dawn ? by Mark Perry ....
The
Gates Inheritance by Roger Morris ....
The
World that Made Bob {Gates) by Roger Morris. ... . .*
The CIA and the Gates Legacy by Roger Morris.
41.
The second coming of Saladin by Pepe Escobar.
42.
The Hidden Hand of Iran in the Resurgence of Ansar Islam by Lydia Khalil.
43a,b.
Bush
Policy Detained in Iran; American accusations against the Iranians have only
escalated, by Karen Greenberg ...
*US
Foments Unrest and Spurns Overtures; Countdown to War on Iran by Alain Gresh;
.
44.
Tehran ignores the bluff and bluster by M K Bhadrakumar.
45.
Gambit to link Iran to the Taliban backfires by Gareth Porter.
46. *
Could
al Qaeda Attack Trigger War With Iran? by Gareth Porter.
47. *
Islamic
Terrorists supported by Uncle Sam by Prof Michel Chossudovsky - "Black Ops" directed
against Iran, Lebanon and Syria.
48.
*The
Pentagon's Blank Check by Robert Dreyfuss.
49.
Party head lambastes Lieberman on Iran by Peter Urban.
50.
The Day After We Strike Iran by Gary Leupp.
... United States Government, Military, Warfare and Foreign Policy - Congressional Documents
(These are studies done by the Congressional Research Service division of the Library of Congress as prepared for Members and Committees of Congress.)
51. The Iran Sanctions Act by Kenneth Katzman, foreign Affairs, Defense, and Trade Division - w/table of post 1999 foreign investment in the oil and gas sector, January 25, 2007; 6pp pdf document.
52. *FY2008
Defense Authorization Bill by Pat Towell, Stephen Daggett, and Amy Belasco,
foreign Affairs, Defense, and Trade Division, May 11, 2007; 43pp pdf document.
53. *Declarations
of War and Authorizations for the Use of Military Force: Historical Background
and Legal Implications by Jennifer K. Elsea, Legislative Attorney, American Law
Division; and Richard F. Grimmett, Specialist in National Defense, Foreign Affairs,
Defense, and Trade Division; March 8, 2007; 115pp pdf document.
54. Information Operations, Electronic Warfare, and Cyberwar: Capabilities and Related Policy Issues by Clay Wilson, Specialist in Technology and National Security, Foreign Affairs, Defense, and Trade Division, March 20, 2007; 17pp pdf document.
55. *U.S.
Strategic Nuclear Forces: Background, Developments, and Issues, by Amy F.
Woolf, Specialist in National Defense, Foreign Affairs, Defense, April 3, 2007;
30pp pdf document.
Iran's Nuclear Industry
56. *Iran
has reconfirmed the country's steady progress on its centrifuge technology by
Kaveh L Afrasiabi. IAEA, warned that Iran probably could enrich enough uranium
to build a nuclear bomb in three to eight years.
57. *Iran's
Nuclear Program: Between Denial and Despair by Pierre Goldschmidt.
58. *A
Catch-22 Nuclear World by Dilip Hiro.
Black Gold and Natural Gas in Iran
59. Iran's
yearly oil revenue to exceed $52b ... Mehr News Agency.
60. Status report on the Iranian oil and gas industries as of July 2006 from
rigzone.com.
61. *Revenge of
the Shia? by Martin Walker - 50pp paper about Iran's energy industries both
black gold and nuclear set amidst a critical analysis of US policy, with 120
comments most of which are disciplined and informative.
... Recent international partnerships (many selections from rigzone.com)
62. *Oil
Cos, Seeking Reserves, See Iran as Long-Term Bet by Sally Jones; Companies
include China Petroleum & Chemical Corp. (SNP), or Sinopec, Norway's Statoil
ASA (STO), Royal Dutch Shell PLC (RDSA), Italy's Eni SpA (E), Total SA (TOT),
Russia's Lukoil (LKOH.RS) and Austria's OMV AG (OMV.VI)
63. Iran
Official: In Talks with Petrobras on Caspian Oil Blocks by Spencer Swartz.
64. *Iran
and China's CNOOC Sign $16 Billion Gas Deal by Sally Jones.
65. Crescent's
$1B Iran UAE Gas Deal May be Hijacked by Rivals by Ayesha Daya.
66. OMV
and Iran Ink Deal for South Pars Gas Field .... OMV.
67. Iran's
POGC Eyeing Bonds to Fund South Pars Development by Hashem Kalantari.
June 27, 2007. © Blumenberg Associates LLC 2007.
"He who knows the enemy and himself will never in a hundred battles be at risk." Sun Tzu.