OIL  (CONT)


"That's a staggering amount of oil to lose every month," said Philip K. Verleger Jr., an independent economist and oil expert. "But given everything else that's been written about Iraq, it's not a surprise."

Mr. Verleger added that if the oil was being smuggled out of Iraq, there would be a ready market for it, particularly in smaller refineries not controlled by large Western companies in places like China, the Caribbean and even small European countries.

The report also contains the most comprehensive assessment yet of the billions of dollars the United States and Iraq spent on rebuilding the oil and electricity infrastructure, which is falling further and further behind its performance goals.

Adding together both civilian and military financing, the report concludes that the United States has spent $5.1 billion of the $7.4 billion in American taxpayer money set aside to rebuild the Iraqi electricity and oil sectors. The United States has also spent $3.8 billion of Iraqi money on those sectors, the report says.

Despite those enormous expenditures, the performance is far short of official goals, and in some cases seems to be declining further. The average output of Iraq's national electricity grid in 2006, for example, was 4,300 megawatts, about equal to its value before the 2003 invasion. By February of this year, the figure had fallen still further, to 3,800 megawatts, the report says.

All of those figures are far short of the longstanding American goal for Iraq: 6,000 megawatts. Even more dispiriting for Iraqis, by February the grid provided power for an average of only 5.1 hours a day in Baghdad and 8.6 hours nationwide. Both of those figures are also down from last year.

The story is similar for the oil sector, where - even if the Iraqi numbers are correct - neither exports nor production have met American goals and have also declined since last year, the report says.

American reconstruction officials have continued to promote what they describe as successes in the rebuilding program, while saying that problems with security have prevented the program from achieving all of its goals. But federal oversight officials have frequently reported that the program has also suffered from inadequate oversight, poor contracting practices, graft, ineffective management and disastrous initial planning.

The discrepancies in the Iraqi oil figures are broadly reminiscent of the ones that turned up when some of the same energy department experts examined Iraq's oil infrastructure in the wake of the oil-for-food scandals of the Saddam Hussein era. In a United Nations-sponsored program that was supposed to trade Iraq's oil for food, Mr. Hussein and other smugglers were handsomely profiting from the program, investigations determined.

In reports to Congress before the 2003 invasion that ousted Mr. Hussein, the accountability office, using techniques similar to those called into play in its most recent report, determined that in early 2002, for example, 325,000 to 480,000 barrels of crude oil a day were being smuggled out of Iraq, the majority through a pipeline to Syria.

But substantial amounts also left Iraq through Jordan and Turkey, and by ship in the Persian Gulf, routes that could also be available today, said Robert Ebel, a senior adviser at the Center for Strategic and International Studies in Washington.

"Any number of adjacent countries would be glad to have it if they could make some money," Mr. Ebel said.

Mr. Ebel said the lack of modern metering equipment, or measuring devices, at Iraq's wellheads made it especially difficult to track smuggling there. The State Department official agreed that there were no meters at the wellheads, but said that Iraq's Oil Ministry had signed a contract with Shell Oil to study the possibility of putting in the meters.

The official added that an American-financed project to install meters on Iraq's main oil platform in the Persian Gulf was scheduled to be completed this month.

As sizable as a discrepancy of as much as 300,000 barrels a day would be in most parts of the world, some analysts said it could be expected in a country with such a long, ingrained history of corruption.

"It would be surprising if it was not the case," said John Pike, director of GlobalSecurity.org, which closely follows security and economic issues in Iraq. He added, "How could the oil sector be the exception?"

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