GAO: Iraqi Oil Sector in Tatters

July 20, 2007
GAO: Iraqi Oil Sector in Tatters

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.