Not a Drill: Iran As a Player In The Oil And Gas Industry

In 2014, the United States became the world’s largest oil producer. This shook the normalized global economic order and stirred some internal cultural shifts in significant oil-producing countries. The fracking boom, responsible for the oil and gas preeminence enjoyed by the U.S., along with simple economic realities, also sent global supply outrunning demand. The oil-exporting countries that are not taking this too well---Russia, Venezuela, and in the spotlight, Saudi Arabia---are now in a pickle apropos cooperation toward curbing global production.

Image source: LeMonde.fr

While the U.S. is also hurt by falling oil prices, it can afford some ascendancy where supply is concerned. It can go as far as being the playground elder, giving Saudi Arabia a sermon about sharing oil markets. President Barack Obama’s landmark leniency toward Iran has also thrown up conspiracy theories about the causes of falling oil prices. Some have accused Saudi Arabia of sabotaging the prices to put competitors like Russia, Iran, and the U.S. in a tight spot. Some see the U.S. using Iran as a pawn against Russia.

Image source: iran-oilshow.ir

Wherever the undercurrents lie, Iran will again be making its mark in an industry where it has a historical and competitive advantage. Before Western sanctions obstructed the flourishing of its oil and gas industry through the denial of Western technology, Iran exported oil to Europe. The relationship has been given another go this year, with the signing of the nuclear treaty and the lifting of the embargo. Iran will also likely look to the Old World for technologies in refining and developing hydrocarbon fields.

Its four-year absence in the industry might reveal new, oil-hungry export markets such as China, the world’s largest importer, Japan, and India. The country’s oil potential could revert to pre-sanction, historical highs of six million barrels a day, the going rate on the eve of the 1979 Revolution. Iran’s potential in the oil and gas industry could introduce more geopolitical upheavals, not least in the board rooms of OPEC.

The president and founder of Southlake Resources Group, Cody Winters is an experienced and accomplished oil and gas businessman for over 12 years. Visit this blog for more updates about the industry.

Which Country Has The Greatest Oil Reserves To Date?

Saudi Arabia has always been a big name in the global oil industry. But in a recent turn of events, the United States was named as the country holding the most number of oil reserves in the world. This information came from Rystad Energy, a consultancy firm based in Norway.

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The firm further estimated that the United States holds 264 billion oil barrels, and more than half of this is in shale. This total exceeds the number of barrels found in Russia (256 billion) and Saudi Arabia (212 billion), placing said countries in second and third place, respectively.

These findings counter the normal perception that Venezuela and Saudi Arabia hold the earth’s biggest oil reserves. According to Rystad Energy, Venezuela only has 95 billion barrels, including its undiscovered oil fields. The company also argues that countries do not have a uniform way of measuring oil reserves. But Rystad, for its part, applied a standardized metric for the purpose of comparison. Texas alone has about 60 billion barrels of oil.

Nobody knows the true amount of Saudi’s oil reserves, which remains a closely guarded state secret. However, the Deputy Crown Prince, Mohammed bin Salman, has recently initiated an economic transformation, which involves weaning the economy from its dependence on oil sales. This transition includes the partial IPO of Saudi Aramco, and the state is looking into taxing the population for their consumption of oil.

Image source: cnbcarabia.com

Cody Winters is the founder and president of Southlake Resource Group. Mr. Winters has been making a name in the oil and gas industry in the past decade. Visit this blog for more updates on the energy industry.