• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 2 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 1 hour Climate Change Protests
  • 8 hours Japan’s Deflation Mindset Could Be Contagious
  • 2 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 17 hours Oil at $40
  • 2 hours "Undeniable" Shale Slowdown?
  • 56 mins China To Promote Using Wind Energy To Power Heating
  • 14 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 20 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 10 hours Ecoside
  • 23 hours Not Just Nuke: Cheap Solar Panels Power Consumer Appliance Boom In North Korea
  • 19 hours Gas Flaring
  • 23 hours Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Iran’s 14 Billion-Barrel Oil Field Comes Online

Back from the wilds of Asia. Just in time to witness one of the most critical new field start-ups the global oil sector has seen in years.

That’s the South Pars offshore field on the Iran-Qatar border. Which was officially commissioned this week, according to reports from Iran’s oil ministry yesterday.

What makes this project so important? Size — with the South Pars field holding more than 14 billion barrels, according to estimates from local engineers.

The beginnings for the field will be relatively modest. With Iranian officials saying that production has initially commenced from seven wells, with output to rise to 35,000 barrels per day over the coming week.

But given the massive estimates on the size of the South Pars reserves, this is a spot that could see production ramp up very significantly. With a number of other facts about this mega-project showing just how far Iran has come along in bringing on new crude supplies.

For one, South Pars is a very advanced project from a technical perspective. With production here achieved through the use of a floating production storage and offloading vessel, or FPSO — a next-generation piece of equipment that allows crude to be loaded for sale right at the wellhead. Related: Submerged Platforms To Revolutionize Offshore Oil & Gas

Even a few years ago, it’s unlikely a pariah nation like Iran could have delivered such advanced technology. With this week’s start-up showing how the project development environment has changed for the better here.

That’s great news for Iran’s oil developers — who now have more options than ever for tapping new crude supplies.

But it’s less welcome for the global crude markets. At a time when West Texas Intermediate has fallen below $50, and continues to see significant downward pressure.

New supplies from Iran won’t help that situation. Especially given the country is one of the few OPEC nations that still has room to increase exports under recently-agreed quotas. Watch for news on the ramp-up of production from South Pars, and for commissioning of additional projects here.

Here’s to a giant worry,

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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