U.S. puts squeeze on Iran's oil fields

[jpak]

http://www.latimes.com/news/printedition/front/la-fg-iranoil7jan07,1,7734831,full.story?coll=la-headlines-frontpage&ctrack=1&cset=true

LONDON — As Washington wages a very public battle against Iran's quest for nuclear power, it is quietly gaining ground on another energy front: the oil fields that are the Islamic Republic's lifeblood.

Iran's oil industry has raked in record amounts of cash during three years of high oil prices. But a new U.S. campaign to dry up financing for oil and natural gas development poses a threat to the republic's ability to continue exporting oil over the next two decades, many analysts say.

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"If the government does not control the consumption of oil products in Iran … and at the same time, if the projects for increasing the capacity of the oil and protection of the oil wells will not happen, within 10 years, there will not be any oil for export," Mohammed Hadi Nejad-Hosseinian, Iran's deputy oil minister for international affairs, said in a telephone interview.

If Iran were to suddenly stop exporting its 2.6 million barrels of oil a day, such as in the event of a military strike, world oil prices probably would skyrocket. But a gradual decline might be offset by other OPEC members, analysts say, particularly as Iraq increases its oil production and Saudi Arabia carries out plans for significant increases in its production capacity.

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[no_hypocrisy]

1. Iran puts squeeze on regional oil exports.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2679627

Tag. You're it.

[Roland99]

2. An Iraqi oil production increase could offset Iran shutting off exports?!??!

:wtf:

Who's the assclown that came up with that gem?

:eyes:

[NickB79]

8. Same one who thinks Saudi Arabia will increase oil output

The Ghawar field is declining and is pumping at 50% watercut or more, yet somehow they'll miraculously increase production.

Oh yeah, and Mexico is declining.

And the North Sea is declining.

And Kuwait is declining.

And China's Daquit field is declining.

And so on and so on.....

[whistle]

3. This is the Bush/Cheney strategy for $120 per barrel crude oil prices

[endarkenment]

4. Planet desperate for more oil.

Mr. Stinky proposes blockading Iranian oil development. Brilliant. Who profits?

[GliderGuider]

5. Talk about cutting off your nose to site your face!

There is no spare capacity to replace oil production shortfalls from any region or for any cause.

These people are all insane.

[formercia]

6. Which brings up the point of striking at Iran's nuclear

program, even if it is a peaceful one. Iran having nuclear power generating capacity allows them to sell the oil they would otherwise use to produce electricity. That would severly limit Fearless Leader's plan.

[bananas]

7. That article has a lot of good information

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Likewise, increased output from refinery construction is being outpaced by the swelling number of young Iranians with a fondness for gas-guzzling cars. Heavily subsidized gasoline is just 35 cents a gallon, a price that invites smuggling, and talk about raising the price has, until recently, gone nowhere.

Moreover, the country has one of the most extensive residential heating infrastructures in the world, with homes in the most remote villages warmed toastily with cheap natural gas.

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