- Metering should be implemented at both ends of the supply line. This step would
immediately improve accountability in the oil sector. - In conjunction with the International Monetary Fund, the U.S. government
should press Iraq to continue reducing subsidies in the energy sector, instead of
providing grant assistance. Until Iraqis pay market prices for oil products, dras-
tic fuel shortages will remain.
Long TermExpanding oil production in Iraq over the long term will require creating corporate
structures, establishing management systems, and installing competent managers to
plan and oversee an ambitious list of major oil-field investment projects.
To improve oil-sector performance, the Study Group puts forward the following
recommendations.
RECOMMENDATION 63:
- The United States should encourage investment in Iraq’s oil sector by the inter-
national community and by international energy companies. - The United States should assist Iraqi leaders to reorganize the national oil indus-
try as a commercial enterprise, in order to enhance efficiency, transparency, and
accountability. - To combat corruption, the U.S. government should urge the Iraqi government
to post all oil contracts, volumes, and prices on the Web so that Iraqis and out-
side observers can track exports and export revenues. - The United States should support the World Bank’s efforts to ensure that best
practices are used in contracting. This support involves providing Iraqi officials
with contracting templates and training them in contracting, auditing, and
reviewing audits. - The United States should provide technical assistance to the Ministry of Oil for
enhancing maintenance, improving the payments process, managing cash flows,
contracting and auditing, and updating professional training programs for man-
agement and technical personnel....
SOURCE: U.S. United States Institute of Peace, Iraq Study Group, “The Iraq Study Group Report,”
http://www.usip.org/isg/iraq_study_group_report/report/1206/iraq_study_group_report.pdf.556 IRAQ AND THE GULF WARS