• 30 mins British Utility Companies Brace For Major Reforms
  • 5 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 7 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 8 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 9 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 10 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 11 hours Rosneft Signs $400M Deal With Kurdistan
  • 13 hours Kinder Morgan Warns About Trans Mountain Delays
  • 20 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 1 day Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 1 day Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
Alt Text

China Takes Aim At The Petrodollar

In a potentially disrupting move…

Alt Text

The U.S. Shale Play To Watch In 2018

The original U.S. shale gas…

Alt Text

Corbyn Seeks To Renationalize Britain’s Utilities

Jeremy Corbyn wants to renationalize…

Historic Deal With Iran Opens Up Oil Industry

Historic Deal With Iran Opens Up Oil Industry

Iran and six major world powers have reached a historic deal that would limit Tehran’s nuclear program in exchange for a lifting of crippling economic sanctions on the Islamic Republic.

The participants at the talks were all smiles after the accord was reached on July 14, and the deal amounts to a thaw in relations between the United States and Iran for the first time since the Iranian Revolution in 1979.

The deal was not welcomed by everybody. Gulf Arab states, which practice Sunni Islam, also are concerned about Shi’a Iran’s rising influence in the Middle East. They have argued that releasing Iran from the sanctions would enrich Tehran to bankroll its sectarian allies in the region, including Lebanon, Syria and Yemen. Related: The Multi-Trillion Dollar Oil Market Swindle

In Jerusalem, Prime Minister Benjamin Netanyahu has long opposed any deal with Iran, saying it’s determined to destroy Israel and can’t be trusted to adhere to a deal that would deprive it of nuclear weapons. He called it a “historic mistake for the world.”

The oil industry, on the other hand, is eager to enter Iran and invest in its oil and gas reserves, which have largely been off limits for years. Iranian Deputy Oil Minister Mansour Moazami says his country’s exports of crude eventually could nearly double from the current 1.2 million barrels per day to 2.3 million barrels per day after sanctions are lifted.

But Gary Hufbauer of the Peterson Institute for International Relations, an economics think tank in Washington, says adding more crude to an already overflowing oil market could bring down the average global price of oil from the current level of between $50 and $60 per barrel to $35 per barrel.

Nevertheless, the agreement with Iran was a major coup for both President Obama and Iranian President Hassan Rouhani, who was elected two years ago having promised to be less doctrinaire, and more pragmatic than his predecessors, in order to free his country from its political and economic isolation. Related: Top 5 Oil Producing Countries Could See Production Peak This Year

Despite their success, even Obama and Rouhani face obstacles. Hard-liners in Iran, especially the leaders of the Revolutionary Guard, are sure to be a hard sell, given the decades of enmity between Tehran and Washington.

As for Obama, he must win over many Republicans in the U.S. Congress who believe any deal would only postpone Iran’s eventual development of a nuclear weapon.

After a 60-day review, Congress can reject the deal. Obama can veto the rejection, and overriding the veto would require the support of two thirds of all members. Even if Obama wins, he still must fight.

At the White House, the U.S. leader made an early-morning televised statement, broadcast to Iran as well as the United States, evidently aimed at persuading Congress and the American public that the agreement was “not built on trust. It is built on verification.” But he stressed, “I will veto any legislation that prevents the successful implementation of this deal.” Related: Methane Hydrates – Larger Energy Opportunity Than Shale?

Under the agreement, the six world powers – Britain, China, France, Russia and the United States, plus Germany – recognize Iran’s program is peaceful, not meant to create weapons, and that these nations respect Iran’s right to a nuclear technology in line with international standards. As a result, Iran may develop the technology under the guidance of the United Nations.

In Paris, French Prime Minister Manuel Valls said the deal made major progress in relieving the enmity between Iran and the West. “There’s been a tension with Iran for ten years or so,” he said. “Of course, it’s not over, but a very important step has been taken.”

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News