GAO: Iraqi Oil Sector in Tatters

[Barrett808]

Source: US News & World Report

GAO: Iraqi Oil Sector in Tatters
By Kevin Whitelaw

Even after spending $2.7 billion in U.S. reconstruction funds, Iraq's oil sector has failed to achieve any of the goals to boost production, according to a new report by the Government Accountability Office.

Indeed, the highest production levels were reached back in 2004 and have not been equaled since then. In addition, the State Department's oil data for Iraq may dramatically overstate the actual production levels by as much as $5.5 billion a year, because of inadequate metering, corruption, theft, and sabotage. Security remains the biggest of the challenges, but future investment will be difficult as well.

Nearly 80 percent of U.S. funds destined for the oil sector have already been spent and the rest of the international community has yet to offer any of its own financial support.

For its part, the Iraqi government has failed to spend more than 3 percent of the $3.5 billion it approved for oil reconstruction projects last year. On the political side, the Iraqi government's effort to pass laws to govern exploration and revenue distribution for the oil sector remain stalled and foreign investment will be minimal until that legislation is in place.

Read more: http://news.yahoo.com/s/usnews/20070720/ts_usnews/gaoiraqioilsectorintatters

[seafan]

1. Last sentence in the article:

GAO: Iraqi Oil Sector in Tatters. July 20, 2007

On the political side, the Iraqi government's effort to pass laws to govern exploration and revenue distribution for the oil sector remain stalled and foreign investment will be minimal until that legislation is in place.

That's exactly why * and His Generals say that they *need longer than September to show progress*.


May the Iraqis stand strong against the theft of their oil resources by the occupiers/outsiders.

[arewenotdemo]

4. I totally agree

[yurbud]

5. it would be nice if Dems in Congress said what you just did

[AllexxisF1]

2. Of course.

Of Course they are in tatters, because if Iraqi oil made it's way into the market again it would drive down prices significantly. The longer Iraqi oil stays off the market the more money the Saudi's keep making.

Next thing these monsters are going to do is getting Iranian oil off the market and then turn on the tap in Iraq once the oil contracts are settled.

The whole war was simply this, Germany and France were going to side with Russia and China in releasing the embargo on Iraq that was laid in the first gulf war. There was no way in hell the U.S. and especially the Saudi's were going to keep that oil off the market. So what happened next...10 or so Saudi crashed airplanes into buildings. The rest is history.

Makes sense now why Daddy never invaded Iraq in the first place. Because the Saudi's stood to make more money with him in power under an embargo than a free democratically elect Iraq selling oil.

[JPZenger]

3. They Couldn't Even Get the Oil Right

What amazes me about the US reconstruction effort is that they couldn't even get the oil industry right. That is the one sector where the US probably tried the hardest. I would have expected the country to be in chaos, but with an oil industry that worked.