A new renewable hydrogen technology,…
The underlying price of oil…
Hassan Rohani, the new Iranian President who succeeded President Mahmoud Ahmadinejad in August, has announced that his government will use the upcoming United Nations General Assembly, to be held in New York later this month, to begin talks with world powers about resolving the dispute over Iran’s nuclear program.
Rohani claimed that they are serious about finding a resolution that will prove a win-win final outcome to the situation. “The nuclear issue will be resolved soon if the other side is serious. The final result should be a win-win. We are ready for it.”
Upon being named the new President of Iran, Rouhani promised to his people that he would reduce international sanctions against his country. The US, UN, and EU have put in place sanctions to try and restrict Iran’s energy industry, oil exports, foreign investment, and a major source of revenue to the economy, all due to accusations that Iran is developing nuclear weapons.
Related article: Why Military Action Against Syria could Cause Oil Prices to Fall
IAEA Director General Yukiya Amano, stated that “given the nature and extent of credible information available to the agency about possible military dimensions to Iran’s nuclear program, it remains essential and urgent for Iran to engage with us on the substance of our concerns.”
Rohani has also said that Iran, already the sixth largest oil producer in the world, and holding the largest proven reserves of natural gas according to the BP Statistical Review of World Energy, plans to increase its output of crude oil and natural gas.
Rohani stated that the current “gas production is not enough” and that Oil Minister Bijan Namdar Zanganeh hopes to boost natural gas production by 30 million cubic metres a day by the end of the fiscal year in March 2014. This increase in natural gas production will begin with the development of the South Pars gas fields phases 12, 15, 16, 17, and 18.
Iran has predicted that it will boost oil production to four million barrels a day by the end of the year, helping it to increase exports, and earn more revenues for the struggling economy. This would be up from the 2.57 million barrels a day produced in August of this year, according to Bloomberg.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com