Iran set to produce 1 million barrels of oil a day 'within months'

[webfact]

Iran set to produce 1 million barrels of oil a day 'within months'
By Keith Walker



LONDON: -- Iran’s oil sector will be the first to benefit from the lifting of sanctions against Tehran.

As it re-enters the market, it eventually wants to produce the same volume of oil as it did about six years ago: 3.5 million barrels a day.

Analysts question how quickly Tehran can bring that volume to the market. The government says production will be raised in two phases.

Iran’s deputy oil minister Amir-Hossein Zamani-Nia explained that, “the Iranian national oil company has the capacity to add 500,000 barrels per day to its oil exports, and bring this amount up to the figure 1 million in the next few months.”

Iran ‘unconcerned’ by plunging oil prices

Oil prices have fallen by 70 percent over the last 15 months, slumping below 28 dollars a barrel yesterday (January 18), yet Iran says it is unconcerned.

“Iran’s full return to the market will happen in the next few months and this has already left its effect on the present prices. We should not be worried about the price,” said oil minister Bijan Namdar-Zanganeh. “Those [countries] who have produced too much oil and have taken too much advantage of Iran’s absence, should be worried.”

Oil reserves

As Iran steps up production, it will export the oil it already has in storage, as economic journalist Ali Pakzad explains.

“Now what we have to offer in order to increase the production and get back to the market is possible through using our reserves. Priorities for Iran are to increase production and to invest [in the oil industry] in order to make up for the damage that our reserves have sustained in the past years. This can be a good priority for foreign investment which, in itself, is a long term issue.”

Euronews Tehran correspondent Javad Montazeri reported: “The Iranian market has turned into an attractive place for foreign investment. Now that sanctions are not an issue, Iran’s domestic economic problems will be the main obstacle to constructive cooperation with international companies, which can help the Iranian economy prosper.”

-- (c) Copyright Euronews 2016-01-20

[rasmus5150]

OOOoohhhhh. The gasoline prices are gonna be so cheap.

That means that the taxi prices in Bangkok is going to be cheaper as well Or maybe not

[khwaibah]

I see 1996 price returning. About 8.50 liter diesel.

[trogers]

OOOoohhhhh. The gasoline prices are gonna be so cheap.

That means that the taxi prices in Bangkok is going to be cheaper as well Or maybe not

Time to switch those taxis back to gasoline...

[sanukjim]

Having worked there in the 70s for 4 years I can tell you that they can not do this alone.When the Brits were forced out in the late 60s their daily production dropped to half in about 3 years ( they have no understanding of preventive maintenance).They then hired the Americans and in a few years were doing well.Then after 1979 when the Assatolla took over they were dropping the out put daily .When there in the mid 70s I aks what next when the Americans left and were told that the Russians could in then. They do need help as the oil business is a bit different then raising camels .

[TheCruncher]

OOOoohhhhh. The gasoline prices are gonna be so cheap.

That means that the taxi prices in Bangkok is going to be cheaper as well Or maybe not

I doubt they gonna get cheaper, since they still charge prices from before the oil boom.

[ExpatOilWorker]

Having worked there in the 70s for 4 years I can tell you that they can not do this alone.When the Brits were forced out in the late 60s their daily production dropped to half in about 3 years ( they have no understanding of preventive maintenance).They then hired the Americans and in a few years were doing well.Then after 1979 when the Assatolla took over they were dropping the out put daily .When there in the mid 70s I aks what next when the Americans left and were told that the Russians could in then. They do need help as the oil business is a bit different then raising camels .

They have actually done surprisingly well, especially since the Iraq/Iran war ended.

[OMGImInPattaya]

Ten dollars a barrel oil here we come...I wonder where all the "peak oil" crowd is now...oh yeah, "climate change" is the disaster de jour.

[tonbridgebrit]

Let's get real here, Iran should be the big power in the Middle East, NOT Saudi Arabia.

[OMGImInPattaya]

Let's get real here, Iran should be the big power in the Middle East, NOT Saudi Arabia.

The Persians have a long history of learned culture, including science, medicine, and the arts...so much more to offer the world than those Wahabi desert rats the Al Sauds!

[ToS2014]

Let's get real here, Iran should be the big power in the Middle East, NOT Saudi Arabia.

I do understand your point but do have a different opinion. My opinion is not who should be the hegemony in the the region, but Iran's increased influence in the region certainly balances the power structure. On a larger scale, you might be wise in looking at the general population numbers of the Shia (Iran Inc.) and the Sunni's (Saudi Inc.). Times are indeed changing in the ME.

[wabothai]

Let's get real here, Iran should be the big power in the Middle East, NOT Saudi Arabia.

The Persians have a long history of learned culture, including science, medicine, and the arts...so much more to offer the world than those Wahabi desert rats the Al Sauds!

Funny, nobody reacts to this one.

[OMGImInPattaya]

Let's get real here, Iran should be the big power in the Middle East, NOT Saudi Arabia.

The Persians have a long history of learned culture, including science, medicine, and the arts...so much more to offer the world than those Wahabi desert rats the Al Sauds!

Funny, nobody reacts to this one.

Hopefully soon, the US will give the Al Sauds the shove off into the dustbin of history they so rightly deserve.

[NickJ]

In California in the seventies there were jillions of Iranian students studying agriculture and engineering....They seemed to all drive Trans-Ams and hang out in discos. Nowadays its the sleezeball Saudis racing Ferraris through the streets of Beverly Hills using the US as there toilet. Hoping on planes home when they get into trouble...

[Rossen]

Why are you so hateful in our time?

[peergin]

How about electricity rates?

[ExpatOilWorker]

How about electricity rates?

What a weird question, but here you go:

Iran has increased the electricity price by 25 percent since the current Iranian calendar month of Esfand (started on Feb. 20), Iranian energy minister, Hamid Chitchian said, the country's IRIB news agency reported on Feb. 27.

Chitchian went on to say that the new price will be applied in the first electric bill in the next Iranian calendar year (to start on March 21), which also includes the current month's electric consumption.

It should be noted that Iranian consumers pay for electricity once per each two moths, or each 45 days.

In late September 2013, the managing director of Iran's Power Generation Transmission and Distribution Management Company (TAVANIR), Homayoun Haeri said that electricity production in Iran costs three times more than its income.

Iran should increase an electricity price, he said, adding that reviewing the electricity power price is necessary for saving the country's electricity power industry.

Haeri went on to note that generating each kilowatt hour of electricity costs 680 rials (about 0.027 cents based on an official rate of 24,800 rials per each USD), while it is being sold for 430 rials (about 0.017 cents). Some 266 rials (some 0.010 cents) of that amount is being paid to TAVANIR.

Iran's Subsidies Organization receives 166 rials (about 0.006 cents) of the figure, he added.

Currently, some 28 million users are connected to Iran's national electricity power grid.

Iran also trades power with Turkey, Azerbaijan, Armenia, Turkmenistan, Pakistan, Afghanistan, Syria, and Iraq.

The country seeks to become a major regional exporter of electricity and has attracted more than $1.1 billion investments for the construction of three new power plants

[RuamRudy]

I am curious as to how they will be able to ramp up production so quickly, and sustain it at the levels they forecast - investment in facilities and access to technology has been severely curtailed for decades. The condition of their wells and processing facilities must be very poor.

[peergin]

It is not the question that is weird, it is the answer that is weird. Who cares about electricity rates in Iran?? What I meant is whether electricity rates in Thailand have kept pace with the enormous decline in oil prices.

What a weird question, but here you go:

Iran has increased the electricity price by 25 percent since the current Iranian calendar month of Esfand (started on Feb. 20), Iranian energy minister, Hamid Chitchian said, the country's IRIB news agency reported on Feb. 27.

Chitchian went on to say that the new price will be applied in the first electric bill in the next Iranian calendar year (to start on March 21), which also includes the current month's electric consumption.

It should be noted that Iranian consumers pay for electricity once per each two moths, or each 45 days.

In late September 2013, the managing director of Iran's Power Generation Transmission and Distribution Management Company (TAVANIR), Homayoun Haeri said that electricity production in Iran costs three times more than its income.

Iran should increase an electricity price, he said, adding that reviewing the electricity power price is necessary for saving the country's electricity power industry.

Haeri went on to note that generating each kilowatt hour of electricity costs 680 rials (about 0.027 cents based on an official rate of 24,800 rials per each USD), while it is being sold for 430 rials (about 0.017 cents). Some 266 rials (some 0.010 cents) of that amount is being paid to TAVANIR.

Iran's Subsidies Organization receives 166 rials (about 0.006 cents) of the figure, he added.

Currently, some 28 million users are connected to Iran's national electricity power grid.

Iran also trades power with Turkey, Azerbaijan, Armenia, Turkmenistan, Pakistan, Afghanistan, Syria, and Iraq.

The country seeks to become a major regional exporter of electricity and has attracted more than $1.1 billion investments for the construction of three new power plants

Edited January 31, 2016 by peergin

[TheCruncher]

It is not the question that is weird, it is the answer that is weird. Who cares about electricity rates in Iran?? What I meant is whether electricity rates in Thailand have kept pace with the enormous decline in oil prices.

What a weird question, but here you go:

Iran has increased the electricity price by 25 percent since the current Iranian calendar month of Esfand (started on Feb. 20), Iranian energy minister, Hamid Chitchian said, the country's IRIB news agency reported on Feb. 27.

Chitchian went on to say that the new price will be applied in the first electric bill in the next Iranian calendar year (to start on March 21), which also includes the current month's electric consumption.

It should be noted that Iranian consumers pay for electricity once per each two moths, or each 45 days.

In late September 2013, the managing director of Iran's Power Generation Transmission and Distribution Management Company (TAVANIR), Homayoun Haeri said that electricity production in Iran costs three times more than its income.

Iran should increase an electricity price, he said, adding that reviewing the electricity power price is necessary for saving the country's electricity power industry.

Haeri went on to note that generating each kilowatt hour of electricity costs 680 rials (about 0.027 cents based on an official rate of 24,800 rials per each USD), while it is being sold for 430 rials (about 0.017 cents). Some 266 rials (some 0.010 cents) of that amount is being paid to TAVANIR.

Iran's Subsidies Organization receives 166 rials (about 0.006 cents) of the figure, he added.

Currently, some 28 million users are connected to Iran's national electricity power grid.

Iran also trades power with Turkey, Azerbaijan, Armenia, Turkmenistan, Pakistan, Afghanistan, Syria, and Iraq.

The country seeks to become a major regional exporter of electricity and has attracted more than $1.1 billion investments for the construction of three new power plants

Then it seems you are in the wrong thread mate.