"Over the past year, Iraq has effectively become a swing producer, turning its taps on and off when it has felt such action was in its strategic interest to do so."
"Review policies towards Iraq with the aim to lowering anti-Americanism in the Middle East and elsewhere, and set the groundwork to eventually ease Iraqi oil-field investment restrictions. Iraq remains a destabilizing influence to U.S. allies in the Middle East, as well as to regional and global order, and to the flow of oil to international markets from the Middle East. Saddam Hussein has also demonstrated a willingness to threaten to use the oil weapon and to use his own export program to manipulate oil markets. This would display his personal power, enhance his image as a “Pan-Arab” leader supporting the Palestinians against Israel, and pressure others for a lifting of economic sanctions against his regime.
The United States should conduct an immediate policy review towards Iraq, including military, energy, economic and political/diplomatic assessments. "
"Middle East Gulf crude oil currently makes up around 25 percent of world oil supply, but could rise to 30-40 percent during the next decade as the region’s key producers pursue higher investments to capture expanding demand for oil in Asia and the developing world. If political factors were to block the development of new oil fields in the Gulf, the ramifications for world oil markets could be quite severe."
"This reopening is important and should be on the bilateral U.S. agenda with these countries. The Department of State, together with the National Security Council, Department of Energy, and Department of Commerce, should develop a strategic plan to encourage reopening to foreign investment in these important states of the Middle East Gulf."
"More oil could likely be brought into the marketplace in the coming years if oil-field development could be enhanced by participation of U.S. companies in countries where such investments are currently banned"