Rep. Bill Delahunt warned against U.S. handling of Iraq's oil and its support of an oil law that could open the oil reserves to foreign companies.

The Massachusetts Democrat said Wednesday at a House hearing even the perception that the war was about oil could be harmful. He pointed to language in a draft oil law that has such foreign potential.

"In a framework draft perceived to be favorable to international oil companies ... our reputation and prestige could suffer," he said, adding Iraqi support would drop further. Whether Iraq's government decides to keep a strong nationalized model, "it's a decision for them to take, not for us to influence," he said at a joint hearing between the Committee on Foreign Affairs' Subcommittee on International Organizations, Human Rights and Oversight, which he chairs, and the Middle East and South Asia Subcommittee.

Delahunt pointed to a timeline of post-Saddam oil policy provided by the Congressional Research Service that detailed U.S. officials or contractors' involvement in the sector.

"It appears to some that the (Bush) administration had less than a noble agenda," he said, including pressure to pass the draft oil law "to benefit ourselves."

He also complained that both President Bush and Congress are telling Iraq to pass their oil law, claiming it will lead to Iraq doling out its revenues -- a step toward reconciliation, they say. Bush has said it in numerous public statements, and privately to Iraqi officials, and Congress enshrined the law as a benchmark of progress in the May war funding bill.

"It does not address the fair and equitable distribution of oil revenue to all Iraqis," Delahunt said. "It should not be confused with the benchmark."

Iraq has the world's third-largest oil reserves and produces nearly 2 million barrels per day now. The oil law is stuck in negotiations between the Kurdistan Regional government and the federal government in Baghdad over who has control over the reserves.