How are we doing on the global oil market these days? Not much news coming out of Iraq in particular.
Wonder what happened to all of that oil we were fighting to defend over there.
Iran has a lot, but I don’t think we are going to get any of it anytime soon. We have to play nice and work with the U.N. to try and sort out this nuclear business. In the meantime, China says to hell with the rest of you, and goes about its business of locking in oil supplies with whoever wants to play, in this case, Iran seems like a good partner. It seems it is about to invest, not just in developing the northern, but also the southern Iranian oil fields (which are capable of producing 700,000 barrels per day of crude). Perfect for the Chinese.
One of the southern fields, Azadegan, has one of the world’s largest oil deposits, with in-place oil reserves estimated at 42 billion barrels, and recoverable resources estimated at about 5.2 billion barrels. It is one of the biggest oil fields found in Iran, in the last 30 years, and enough to tide China over a for a while.
Speaking to reporters in a visit to the Petropars Company on Sunday, Iran’s Oil Minister Rostam Qasemi said the agreement for developing Azadegan and Yadavaran oil fields has been reached after 10-15 years of negotiations with the Chinese side.
He added that the Chinese side has started its activities by investing USD20 billion dollars in the oil fields. Must be the interest from all those U.S. Treasury bonds.
“So far, more than 20 drilling rigs have been installed in Azadegan and Yadavaran oil fields and plans have been made for the daily production of 700,000 bpd of crude oil [when development of both fields is complete],” Qasemi stated.
The minister said contracts have been signed for the development of 12 new oil fields in the past few months, adding, “Development of some fields, including Azar and Changouleh oil fields has also begun.”
Yadavaran oil field is located in the southwestern Khuzestan Province bordering Iraq. The development project of the oil field is expected to be implemented in three phases. Upon the completion of all phases, some 300,000 barrels of oil are expected to be pumped out on a daily basis.
Iran holds the world’s third-largest proven oil reserves and the second-largest natural gas reserves.
The country’s total in-place oil reserves have been estimated at more than 560 billion barrels, with about 140 billion barrels of extractable oil. Moreover, heavy and extra heavy varieties of crude oil account for roughly 70-100 billion barrels of the total reserves.
Between Clinton’s ‘prices to be paid’ and Obama’s new trade-war, is it any wonder the Chinese have decided to escalate their ‘more-than-rhetoric’ from bartering away from the USD. After ignoring the sanctions and then receiving their exemption, they are doing what they usually do and sending a major F-you to our girl in the mid-east? What’s next? Oh. Defending their new investment in global oil reserves. That’s what.
Do the Iranians look like dummies to you?