• 20 mins Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 hour Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 hours Whitefish Energy Suspends Work In Puerto Rico
  • 3 hours U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 15 hours Thanksgiving Gas Prices At 3-Year High
  • 19 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 21 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 1 day Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 1 day Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 1 day Iraq Steps In To Offset Falling Venezuela Oil Production
  • 1 day ConocoPhillips Sets Price Ceiling For New Projects
  • 4 days Shell Oil Trading Head Steps Down After 29 Years
  • 4 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 4 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 4 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 4 days Venezuela Officially In Default
  • 4 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 5 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 5 days Rosneft Announces Completion Of World’s Longest Well
  • 5 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 5 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 5 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 6 days Africa’s Richest Woman Fired From Sonangol
  • 6 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 6 days Russian Hackers Target British Energy Industry
  • 6 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 6 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 6 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 7 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 7 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 7 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 7 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 7 days OPEC To Recruit New Members To Fight Market Imbalance
  • 7 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
Can Oil Majors Continue To Beat Estimates?

Can Oil Majors Continue To Beat Estimates?

As oil prices claw their…

Iran: Most OPEC Producers Back Extension Of Cuts

Iran: Most OPEC Producers Back Extension Of Cuts

The majority of OPEC members…

Beyond Oil, Iran Mulls Ramping Up Gas and Electricity Exports

Beyond Oil, Iran Mulls Ramping Up Gas and Electricity Exports

If and when Western sanctions are lifted, Iran plans not only to resume large exports of oil, but also gas, and is even considering expanding its sales of electricity to foreign customers within its reach.

Before the sanctions, which were imposed because of Iran’s nuclear program, the Islamic Republic exported an average of 2.3 million barrels of crude per day, but once the sanctions were tightened in 2012, that amount shrank to about 1 million barrels per day.

Now that Tehran has agreed to limit the nuclear program, the sanctions probably will be lifted in the near future, and Iran has said repeatedly that it intends to increase oil production to 500,000 per day immediately, and to 1 million barrels per day within six months. Eventually it hopes to at least double that volume to match its pre-sanctions output.

Related: Potentially Worth Trillions, But Is Aramco A ‘Good Deal’ For Investors?

So far, though, not much has been said about plans for other forms of energy. But now Azizollah Ramezani, the director of international affairs for the National Iranian Gas Co. (NIGC), said Iran plans to develop technology that would allow it to vastly increase its output of gas for export to China, Europe and India.

Under the sanctions, such technology wasn’t available to Iran, he said, but with the lifting of sanctions, new foreign investment in his country’s gas sector could lead to record production of gas, which would allow it to compete more capably in the European market with gas-export giants such as the United States and Russia.

“The United States is trying to export liquefied natural gas to Europe to reduce [Europe’s] dependence on Russian supplies,” Ramezani said, and added that Iran should do its utmost to acquire a share of that market, despite the doubts of some critics who say it wouldn’t be profitable.

Related: Was Iran’s Claim About Ramping Up Oil Production Just Hype?

“Some claim that it is not economical for Iran to export its natural gas to Europe,” Ramezani said, “but this is not true.” He explained that the recent plunge in the price of oil has bolstered the market in gas and enhanced Iran’s position as an exporter.

As for competing with Moscow, Ramezani said, “Russia is currently exporting natural gas to Europe through a 3,000-kilometer [1,800-mile] pipeline,” and Iran can use a similar conduit for shipping gas to Europe.

Another technology that will be available to Iran once the sanctions are lifted would allow it to transform conventional power generators to efficiently produce electricity for export, rather than just exporting the gas itself.

Related: Rig Count: Capitulation?

Veteran diplomat Kamal Kharrazi, a former foreign minister, said Friday in Tehran that Iran must put more emphasis on exporting electricity because it has a greater added value than gas and therefore mean greater profits for the country.

In fact, Kharrazi said, because Iran’s production of gas is now so low, it should import gas from neighboring countries such as Turkmenistan and re-export it, some of it in the form of electricity, a move that would have both strategic and economic benefits for the country.

Already Iran is the leading producer of electricity in the Middle East and ranks 15th among the world’s largest producers. It now exports electricity to Afghanistan, Armenia, Iraq, Pakistan, Turkey and Turkmenistan.

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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