From oil wells to institution building an approach for fair oil distribution in Iraq

Abstract

This thesis represents a case study of the current problems surrounding the distribution of oil revenues in Iraq. First, the main problems facing Iraq's oil economy are examined. Second, an assessment is made of the distribution system outlined in the Iraqi constitution. Third, based on this assessment, arguments are given as to the necessity of a new oil law. A critical area of discussion centers on the issue of federalism vs. a strong central government - which system best serves the needs of the country in a manner consistent with future stability. Based on this discussion, the thesis also examines the feasibility of a direct distribution system of oil revenues. Here the main issues center on the feasibility of alternative distribution systems and the opposition they may face. The thesis concludes by developing the framework for an ideal distribution system and proposes possible modifications of the Iraqi Constitution and new Iraqi Hydrocarbon/Oil Law. It also recommends eight steps to help achieve a solution. The study draws on the sources of many scholars, related countries' officials, and the author's personal observations and thoughts gained while serving in and related to Iraq in various missions. The purpose of the study is to assist in resolving many of the factions, which are currently causing tensions and violence in an area where multiple ethnic and sectarian groups are vying for a single strategic resource.