Although crude traded in the…
Oil prices fell on Wednesday…
Iran’s plans to double its natural gas production over the next few months may have to go on hold for a while after a recently erected natural gas platform in the Persian Gulf sank last week.
The $40 million platform was built a company owned by the Iranian Revolutionary Guard Corps (IRGC), and funded by the Iranian government. If this is the standard to be expected from the IRGC then maybe fears of a blockade in the Straits of Hormuz are unfounded.
A giant natural gas field exists under Qatar and the south-western part of Iran, known as the South Pars/North Dome Gas-Condensate field. Qatar’s share gives them around 890 trillion cubic feet, equating to nearly 13% of the world’s total proven reserves; Iran on the other hand has 450 trillion cubic feet
Related article: Aubrey McClendon and the Destruction of the Natural Gas Market
Iran has the largest natural gas reserves in the world after Russia, and if it manages to boost its production volume significantly, and export its product, then it could spell doom for the coal industry. Natural gas is much cleaner that coal, and generally it can be cheaper as well.
By. Charles Kennedy of Oilprice.com
Charles is a writer for Oilprice.com