• 1 day Shell Oil Trading Head Steps Down After 29 Years
  • 1 day Higher Oil Prices Reduce North American Oil Bankruptcies
  • 1 day Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 1 day $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day 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
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 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
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 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
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 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
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 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
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
The IEA Is Grossly Overestimating Shale Growth

The IEA Is Grossly Overestimating Shale Growth

The IEA’s forecast that U.S.…

US Shale Boom May End Iran’s Dreams of Developing World’s Largest Gas Reserves

US Shale Boom May End Iran’s Dreams of Developing World’s Largest Gas Reserves

With an estimated 1,187 trillion cubic feet in the ground, Iran has the world’s largest natural gas reserves, however it has not managed to develop them for a variety of reasons. The US sanctions that restrict the Persian states energy sector, and foreign finance from reaching the country have prevented advances in the gas sector, and it now seems that the North American Shale boom may increase the supply to the global market to such an extent that there will no longer be any demand for Iran’s gas.

The US and European sanctions in place due to a disagreement over Iran’s nuclear development programme, have already cut the main source of revenue, crude oil exports, by half since 2011 according to the IEA, whilst at the same time restricting foreign financial institutions from investing in Iran.

Partners that have the money and expertise necessary to develop natural gas reserves, such as Royal Dutch Shell, Repsol, and Total, have all abandoned their plans in Iran, and this has delayed any progress in the sector.

Related article: Shale Revolution Scuppered Gazprom’s $1 Trillion Dream

Iran’s Oil Minister Rostam Qasemi argues that “energy should not be politicized. Energy in Iran should benefit all countries.” But unfortunately for him the West does not seem to agree.

The newly elected president Hassan Rohani has promised to try and find solutions to bring a gradual end to the sanctions, but even if this is the case, LNG projects currently under construction around the world will increase total export capacity by 32% by 2018. It would take around ten years in order to develop the 40 million metric tonnes a year capacity that Iran has planned, meaning that the global market would be incredibly overcrowded, and prices would likely be too low for any profit to be made on Iranian LNG.

Tony Regan, an energy consultant at Tri-Zen International, stated that“Iran has missed the boat. They should have slotted in nicely between Qatar’s projects and the new Australian ones and before anyone was talking about U.S. exports.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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