U.S. auditors of Iraq reconstruction see potential and roadblocks in increased oil production and prices…

Higher exports and oil prices are bringing in record revenue for Iraq, but the lack of institutional capacity to spend it on capital projects is preventing further development of the oil and gas sector, according to a report by the U.S. Special Inspector General for Iraq Reconstruction.

The report was critical of U.S. reconstruction efforts and work to help Iraq cut down corruption that, along with the inability to actually contract and spend funds, is preventing Iraqi government officials from being able to spend the funds on projects to enable the country with the world's third-largest oil reserves to produce and export at its full potential, Ben Lando reports for United Press International.