Iran's Plans | Russell T. Rudy Energy LLC
“World Oil” reports that Iranian Oil Minister, Bijan NamdarZanganeh, has stated that his country will raise its oil production just as soon as internationally imposed sanctions are lifted. He contends that failing to do so would mean permanently relinquishing market share.
Among OPEC countries, Iran was second only to Saudi Arabia in terms of production prior to the sanctions. It still ranks fourth in the world in terms of reserves. Shell and BP seem eager to resume business with Iran as soon as sanctions are lifted.
Currently the world is awash in crude. OPEC is producing in excess of its official production target of 30 million barrels of oil per day (bopd) with approximately a third of this coming from Saudi Arabia. The U. S. and Russia are also increasing production. All of this has contributed to a collapse in crude prices. If Iran floods the market with incremental output as well, there will be even more downward pressure on prices.
Algeria has suggested an emergency meeting of OPEC to attempt to lower production and help raise prices. They have received support from Libya, Venezuela and Iran. However, until Saudi Arabia agrees, the cartel will not meet prior to their scheduled session on December 4.
To read the article in its entirety, please go to http://www.worldoil.com/news/2015/8/24/iran-plans-any-cost-oil-output-rise-to-defend-market-share .
