Apologies if anyone has already commented on this, and apologies for the quick treatment. I have not researched any of this yet:

Without going into too much detail, the state of Alaska has arranged a <a href=
http://www.apfc.org/>fund that apparently pays every resident a piece of the action on oil resources taken from the state.

I don't know exactly how it would be arranged in Iraq, or even if it is possible--I would be against continued government ownership of the oil resources--but I think setting up something that would allow each Iraqi to get a chunk of the oil revenues on a regular basis would be a great idea.