RECOMMENDATION 60: The U.S. Department of Justice should lead the work of organizational transformation in the Ministry of the Interior. This approach must involve Iraqi officials, starting at senior levels and moving down, to create a strategic plan and work out standard administrative procedures, codes of conduct, and operational measures that Iraqis will accept and use. These plans must be drawn up in partnership.
RECOMMENDATION 61: Programs led by the U.S. Department of Justice to establish courts; to train judges, prosecutors, and investigators; and to create institutions and practices to fight corruption must be strongly supported and funded. New and refurbished courthouses with improved physical security, secure housing for judges and judicial staff, witness protection facilities, and a new Iraqi Marshals Service are essential parts of a secure and functioning system of justice.
5. The Oil Sector
Since the success of the oil sector is critical to the success of the Iraqi economy, the United States must do what it can to help Iraq maximize its capability.
Iraq, a country with promising oil potential, could restore oil production from existing fields to 3.0 to 3.5 million barrels a day over a three-to five-year period, depending on evolving conditions in key reservoirs. Even if Iraq were at peace tomorrow, oil production would decline unless current problems in the oil sector were addressed.
Short Term
RECOMMENDATION 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.