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IRAN: There will be oil, and lots of it


Iran-oil Iran is reporting huge new discoveries of oil that contain "billions" of barrels of reserves, state radio quoted the managing director of the country's National Oil Co. as saying today. 

Seyfollah Jashnsaz said Iran has discovered seven new oil fields in unspecified locations around the country. 

"Billions of barrels of oil will be added to the country's existing oil reserves," he said in comments broadcast on state radio.

Iran-oil According to Jashnsaz, just one of these oil fields has 9 billion barrels of oil. 

"Even if we make calculations based on the minimum 12% recovery rate," he said, "it means that 1 billion barrels of oil can be recovered from this field alone."

He added that further details of the find will be announced by the country's minister of oil in coming days.

Iran already has the world's third-largest oil reserves, behind first-place Saudi Arabia and Canada. It recently added that its reserves had grown to 138 billion barrels from 90 billion barrels, thanks to reserves discovered over the last three years. 

But Iran's problem has never been finding oil and gas reserves, but drawing them out of the earth and seabed and shipping them off for export. 

On Saturday, Iran's deputy oil minister admitted that the country has been too slow in developing Persian Gulf gas fields compared to Qatar, which draws natural gas from the same reserves.

Iran produces only 10 billion cubic feet of gas per day from the South Pars field, compared to 12.2 billion cubic feet produced by tiny Qatar, which shares the field, said Akbar Torkan. 

The South Pars field contains an estimated 46.2 trillion cubic feet of gas, about 8% of the world's proven reserves.

Iran blames United Nations and U.S. restrictions on doing business with Iran for its lackluster production.

-- Borzou Daragahi in Beirut

Photo: The Lavan oil refinery at Lavan Island off the south coast of Iran. Credit: Behrouz Mehri / AFP / Getty Images

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Comments () | Archives (15)

Much oblige for good words!
It's just such waste to extract and export crude oil instead of marketing crude oil derivatives in a worldwide retail bazaar.
There is no rush to advertise and extract every drop of crude oil now and literally burn it since future generations have a right and better technology to take advantage of this unrenewable resources in such way which we can't imagine presently.

Two important points here:

1) As Mr. Daragahi pointed out, Iran's problem is not its resource wealth, but its ability to exploit those resources. Poorly managed, state-run companies are to blame for Iran's energy woes, not economic sanctions. Sanctions have never done to Iran what it Iran has done to itself. Further, Iran's insistence on "self-reliance" provides little hope for its energy future. Iran simply does not have the technological know-how to develop its energy resources. This is particularly true for its South Pars field, located underneath the Persian Gulf.

2) One of the biggest reasons int'l energy companies have not invested in Iran's oil & gas sectors is that dealing with Iran's national oil company (NIOC) is often more trouble than it's worth. Iran's constitution prohibits any foreign ownership of its oil & gas resources. Iran's various "buy-back agreements" haven't offered energy companies the returns they could get elsewhere.

Got participate on and educate yourselves.
I will be suprised if this is actually read.

The comments by Mr. Plainview and plainbread are misleading.

1. Nice There Will Be Blood Analogy, but Iran and Qatar share a gas field not an oil field. Further, it's not a drainage matter as gas is contained in different kinds of seams than oil.

2. The author is not inconsistent in units of measurement. Oil is tracked in barrels; gas in cubic feet.

Beautiful comments. I think it is a HUGE mistake advertising your wealth--Oil and gas--throughout the jungle (i mean our current world) when you don't have the means to defend it. This is like parading the meat in front of the wolves if you know what i mean. I have to admit that Iran is probably the only or at least one of the few independent countries in this world that does not bow to US hegemony. This is not right and needs to be fixed. All I can recommend to the US government is to try and spread democracy to that country ASAP as they did to many other countries.

gizmonix is right. There is something wrong with the math in this article. According to the calculations, the South Pars field will be depleted in less than 6 years. According to Wikipedia, the actual total "recoverable" gas reserve in the South Pars field is 1,260 trillion cf, which, at a depletion rate of 22.2 billion cf per day, lasts for approximately 157 years. Sounds more like it...still not a good sign, but, better than 6 years.

It is a natural organism that is self-reproducing. The Oil wells that was capped in the USA in now filled.

If Qatar is sharing the same oil field and Iran is slow in drawing it out, well all I can say is: Drainage! Drainage, Eli! Drained dry, you boy! If you have a milkshake and I have a milkshake and I have a straw and my straw reaches across the room and starts to drink your milkshake. I drink your milkshake! I drink it up!


Your calculation ain't right. The article mentions about barrels and qubic feet. Don't put them in the same equation even though all of them are called "billions".

I very much agree with Joe


Come on! Would the US be jealous of Iran and invade it to capture the oil?

well I thought I was the only person to make insane analogies like that so thanks - the iranians need to continue to build their own internal military system as they got burned on those old f-14's and probably alot more - did the u.s. ever give them back their money - even after shooting down an antire plane of 300 people by the u.s. miitary?

Are the numbers right? 46.2 trillion/(10+12.2)billion = 2081 days. In less than 6 years.... would all be gone? Somebody need to double check the numbers.

I agree. They should first build up an ICBM force with 200 hydrogen bombs. Then tell the world about it. I wonder if some ten person "oppressed" minority won't ask the US for help and away we go - oh wait, I forget Cheney is no longer in charge. My bad...

Not wise to advertise your wealth until you can protected it in full.
What do you think it would of happened if Native Americans deliberately would have let European know where they are, well before chance discovery of America continent!


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