Oil Woes In Iran: Flagging output from its vast reserves could diminish Tehran's influence

Businessweek ^ | December 11, 2006 | Stanley Reed, with Babak Pirouz

[Mel Gibson]

Few countries can match Iran in its ability to generate angst among Westerners. It appears determined to become a nuclear power. Tehran's Islamic leaders aid radical groups across the Middle East. And as the U.S. gets bogged down in Iraq, Iran's influence in the region is on the rise, fueled in large part by its vast energy wealth.

Yet Iran has a surprising weakness: Its oil and gas industry, the lifeblood of its economy, is showing serious signs of distress. As domestic energy consumption skyrockets, Iran is struggling to produce enough oil and gas for export. Unless Tehran overhauls its policies. Within a decade, says Saad Rahim, an analyst at Washington consultancy PFC Energy, "Iran's net crude exports could fall to zero."

That's not to say Iran doesn't have abundant resources. The country's 137 billion barrels of oil reserves are second only to Saudi Arabia's, and its supply of gas trails only Russia's. Iran has been producing just 3.9 million barrels of oil a day this year, 5% below its OPEC quota, because of delays in new projects and a shortage of technical skills. By contrast, in 1974, five years before the Islamic Revolution, Iran pumped 6.1 million barrels daily.

It's not just oil that Iran is failing to exploit. The glacial pace of negotiations is also making it fall behind neighboring Qatar in exploiting the huge offshore gas field that the two countries share. While Qatar has signed up the likes of ExxonMobil (XOM ) and Shell to develop the site, Iran's talks with Total and Shell have progressed far more slowly. Iran is now a net importer of gas, a situation not expected to reverse before 2010.

Graphic Illustration Click here>:Why Iran's Oil Ouput is Falling!

[Mel Gibson]

What a difference there is between Qatar and Iran! Qatar is developing it's huge offshore North Gas Field and making money hand over fist (Qataris are going to be the wealthiest citizens on the planet), while Iran's offshore South Pars Field (which is a part of Qatar's North Field) waits on Iranian governmental bureaucracy. Iran - natural gas importer, unbelieveable!

When I worked for the Qatari ExxonMobil affiliate, RasGas, the North Field accounted for 12-13% of ExxonMobil's Net Profit. Unbelieveable cash (gas) cow. When you drive from Doha 70 km to Ras Laffan where the LNG plants are located, it's like finding Las Vegas, there are 6500 workers out in the middle of nowhere.

Click: QATAR INFO

[justa-hairyape]

Apparently their plan is to be exporting nuclear weapons in the future.

[Eclectica]

"Internal Politics: Contracts linked to the Revolutionary Guards have gained $8 Billion".

Maybe why so many Iranian aircraft containing Revolutionary Guards have..."crashed"?

[misterrob]

As you well know, it's them JOOOOOOOOOOOs fault.

[wodinoneeye]

An interesting idea -- US should fund (if we arent already) revolutionaries (reformers) in Iran and have them terminate/severely curtail Iran's Oil production. Their facilities are just as vulnerable as the ones in Iraq that Iranian instigators have been blowing up.

Libtards might call this terrorism, but it wont be targeting civilians AND there ARE alot of Iranians who wish the tyrant of the Mullahs to end.

I would hope that type of thing would be just the start of a major effort of 'regime change' for those Hitler wannabees that are now running Iran.

[KenmcG414]

The Iranians should have no fear now that the RATS control our purse strings. The appeaser RATS will give them all the foreign aid they need, so they will like us.