Why did the U.S. invade Iraq in 2003?

U.S. intelligence produced reports showing Saddam Hussein was in

possession of nuclear weapons.

DHL, Aid and Iraqi OilImplications of the Draft Hydrocarbon Legislation and Foreign Aid

on the Iraqi Oil Infrastructure and Trade Mechanisms.

Background InformationOil in Iraq

Number one export Third largest known reserves in the world

Oil Infrastructure Basics Current Law Allocations

Security Environment Invasion Current

Crude Oil Statistics

May

.03

Jan.

04

Octob

erJu

ly

April

Jan.

07

Octob

erJu

ly

April

0

0.5

1

1.5

2

2.5

3

Crude oil _x000d_production _x000d_ Crude Oil ExportPre-War Peak

Crude Oil Statistics (Cont.)

24%

34%

1%

41%

Iraq Crude Oil Export 2008

EuropeAsiaAfricaWestern Hemisphere

Draft Hydrocarbon Legislation

Undivided ownership of Oil wealth

Creation of Oil bodies FOGC INOC MOI

Contract Regulation

Trade Facilitation through Monetary Policy

Aid for Trade

Pre-Invasion Oil For Food Program

IRRF Creation of CPA Security Funds

IMF Funds Post-Conflict Assistance SBA’s

Impact on Oil PolicyEconomic dependence on Oil

Created more secure environment Future investment

Foreign influence in Policy making mechanisms PSAs Regional Contracts

Problems With DHL and Current Programs

DHL problems with Federal vs. Regional control Contracting Fund distribution

PSAs

Internal Issues Refining Corruption Oil Smuggling

AnalysisNeed for a DHL

Ratification Clearly defined allocation Contract Distribution Mechanism

Other additions Security Anti-Corruption mechanism

Aid Overall beneficial Can eventually impinge upon Iraq

Questions?