Open Thread: Any Energy Related Subject
Russian production has flattened out during the last 12 months. Russia is the world’s second largest producer of crude oil, only slightly below Saudi Arabia.
Iran unveils a three stage plan to get its Persian Gulf oil back to pre sanction levels… in five years.
3-stage plan to raise oil production unveiled
Managing director of the Iranian Offshore Oil Company has explained details of Iran’s three-stage plan to increase oil production during the post-sanction era.
Explaining the detail of Iran’s three-stage plan to increase crude oil production in Persian Gulf, Saeed Hafezi said that, “currently, the natural decline in Iran’s oil production in offshore fields exceeds the decline in onshore fields.”
Pointing to the 10-12 percent drop in oil production at Persian Gulf fields, Hafezi asserted that, “accordingly, implementing plans to increase oil production in these areas will be time consuming and only after compensating for the natural decrease we can begin to increase our production capacity.”
This official reiterated that by the removal of sanctions, Iran will undertake a three-stage plan to increase oil production adding that, “based on this plan, during the first stage we will implement emergency techniques to increase daily production of crude oil in Persian Gulf by 32 thousand barrels.”
Announcing a medium-term program to increase daily production in Persian Gulf and the Strait of Hormuz by 130 thousand barrels, Hafezi added that, “by undertaking a four to five-year plan, the natural drop in annual production capacity will be compensated in order to reach the quota of 800 thousand barrels per day.”
I found the above article extremely revealing. First, much of Iran’s decline during sanctions has been due to “natural decline”. Of course we knew that but I had no idea it was as high as 10 to 12 percent. That was just their Persian Gulf fields, but their inland fields have been declining also. It will be interesting to see how long it takes them to get those fields up to their previous levels.
…click on the above link to read the rest of the article…
