http://bakerinstitute.org/Pubs/iraqstudygroup_findings.pdfRECOMMENDATION 62:
•
As soon as possible, the U.S. government should provide technical assistance to the Iraqi
government to prepare a draft oil law that defines the rights of regional and local governments
and creates a fiscal and legal framework for investment. Legal clarity is essential to attract -
investment.•
The U.S. government should encourage the Iraqi government to accelerate contracting for the
comprehensive well work-overs in the southern fields needed to increase production, but the
United States should no longer fund such infrastructure projects.
•
The U.S. military should work with the Iraqi military and with private security forces to
protect oil infrastructure and contractors. Protective measures could include a program to
improve pipeline security by paying local tribes solely on the basis of throughput (rather than
fixed amounts).
• 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, drastic fuel shortages will remain.
Long Term
Expanding 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 international
community and by international energy companies.
•
The United States should assist Iraqi leaders to reorganize the national oil industry 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 outside 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 management and technical
personnel.