• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Kurdistan Ready To Hand Over Oil For 17% Of Iraqi Budget

The Kurdistan Regional Government has…

Alt Text

Kurdistan Proposes Immediate Ceasefire With Iraq

The Kurdistan Regional Government has…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

How Bad do Sanctions Really Hurt Iran?

How Bad do Sanctions Really Hurt Iran?

With 20 governments expressing their commitment to reduce the amount of crude oil purchased from Iran, the U.S. government said oil production from the Islamic republic was down by 1 million barrels per day from October, compared with the same time last year. Sanctions imposed this year were meant to cut into Iran's oil revenue, which could be financing its nuclear activity. Washington said members of the international community were sending a clear message to Iran that it must come clean on its nuclear ambitions or face "increasing isolation and pressure."  A government watchdog report, however, said at least seven companies from countries that received waivers from the U.S. government were still investing in the Iranian oil and natural gas sector.

U.S. Secretary of State Hillary Clinton said China, India, Malaysia, Republic of Korea, Singapore, South Africa, Sri Lanka, Turkey, and Taiwan qualified for a sanctions waiver because of their reductions in crude oil purchases from Iran. Clinton said steady commitments from those countries meant Iranian funding for its nuclear program and "its support for terror(ism)" were curtailed significantly.

"The message to the Iranian regime from the international community is clear: take concrete actions to satisfy the concerns of the international community through negotiations with the P5+1, or face increasing isolation and pressure," she said in a statement.

Related Article: Who Should be Doing the Geopolitical Heavy Lifting in The Middle East?

A report from the Government Accountability Office, however, found that at least seven companies from Asian and African economies were still investing in the Iranian oil and natural gas sector. India's ONGC Videsh was listed by the GAO as an active investor in the Iranian oil sector with a 40-percent stake in the Farsi natural gas block in Iran. The GAO report noted the company's exploration contract there had expired, however. Meanwhile, the China Petroleum and Chemical Corp., known also as Sinopec, holds a majority stake in Iran's Yadavaran onshore oil field and didn't provide a comment to the U.S. government about its ongoing activity in the country.

Iranian officials last week said targeted sanctions were beneficial to a struggling economy that depends, in large part, on oil revenue. A member of the Iranian parliament's National Security and Foreign Policy Commission said Clinton's decision suggested Washington had to "think again" in terms of the consequences that sanctions have for U.S. allies.

Related Article: Tension Escalates in Syria Amid Fears of Chemical Weapons

The Organization of Petroleum Exporting Countries releases its monthly report for December later this week. Since 2010, OPEC shows that crude oil production from Iran has experienced a steady decline. The GAO, for its part, found that while some countries were still investing in Iran, most of the work and trading activity there has remained in the margins. In its report, the GAO said it was the State Department that was responsible for making determinations of what's considered sanctionable activity. But activity in the Iranian energy sector hasn't declined to the point that the country is sidelined completely, as Clinton suggests. Sanctions may be working, however, as witnessed with the collapse of the country's currency this year.
Nevertheless, Iran remains a major oil player despite its controversial nuclear ambitions. According to OPEC, and in the face of tightened sanctions pressure, Iran still managed to hold the No. 5 spot among its member states, just beating Venezuela in terms of October production levels.

By. Daniel J. Graeber of Oilprice.com




Back to homepage


Leave a comment
  • robertsgt40 on December 12 2012 said:
    Has anyone noted these sanctions are acts of war? The irony is Iran has complied with all IAEA requests and is operating within the law.(Required by IAEA). Israel is on the other end of the spectrum. Operating outside the law by not being a signatory of NNPT and stocking hundreds of nuclear warheads. Our empire is quickly fading. Thanx Israel. You want a chance at world peace, ditch Israel. You want WWIII, stay the course.
  • Danibugab on December 23 2012 said:
    Petrodollar era is broken and corporate capitalism is smashed into pieces! Falsified globally designed speculative economics system are exhausted. Hyperinflation is on its way. Over. Over again.

Leave a comment




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