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Post by 3bid on Dec 16, 2015 23:12:09 GMT -5
Nowhere else, Iran can produce oil at $1
Mon Dec 14, 2015 | PressTV
Iran’s push for big investment in its oil industry comes amid crude prices sliding to new record lows but officials are confident the low cost of production in the country will supersede any drawback.
The collapse of oil prices has driven many US shale and other high-cost producers out of business and forced companies to put their development plans on hold.
Nevertheless, it is business as usual in Iran where production costs in some central oil fields wallow at $1-$1.5 a barrel.
“Currently, the cheapest crude oil in terms of recovery costs is produced and supplied in Iran’s central regions where production is possible at $1-$1.5 a barrel,” CEO of Iranian Central Oil Fields Company Salbali Karimi said.
The country’s oil reserves, the world's fourth largest estimated about 150 billion barrels, are mainly based in the Zagros belt and the Persian Gulf.
An aerial view of an anticline in the Zagros Mountains. About a third of these anticlines contain hydrocarbons.
With crude prices on a tailspin, officials have taken new measures since last year to cut costs further and make production more efficient, Karimi said.
“With the implementation of the existing plans, we expect oil and gas production costs to reach a minimum,” he said.
Each barrel of conventional crude oil in the Persian Gulf costs Iran between five and 10 dollars to recover versus $40-$80 for the shale oil.
Iran is “the world’s cheapest country” for oil production, head of investment at the National Iranian Oil Company (NIOC) Ali Kardor said in October.
“The finished cost of each oil barrel produced in Iran is about $5. This price tag doesn’t exceed $10 with the costliest of processes,” he said.
Iran needs $250 billion of investment in its oil industry between 2016 and 2025, including $176 billion in its upstream sector and another $77 billion in downstream spending, Kardor said then.
The country plans to boost oil production to 5.7 million barrels a day and gas output to 1.4 billion cubic meters a day by 2021.
Last month, Iran hosted leading energy companies from around the world at a conference in Tehran to unveil its new framework for oil and gas contracts and present $30 billion worth of projects to investors.
As many as 250 representatives of companies from 33 countries attended the event.
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Montana Kid> Teen defender
Price they will get will be somewhere between 1 and 2 US$ per 1000 cubic meters.
But most will be turned into petrochemicals and exported.
www.presstv.ir/Detail/2015/12/14/441662/Iran-oil-production-costs-prices-Karimi
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Post by vulcanized crawler on Dec 17, 2015 6:52:37 GMT -5
iran can produce oil for less than a buck. that is what you can do with slave labor. hitler did it well all over europe in the 30s and 40s.
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Post by thunkerdrone on Dec 17, 2015 8:05:25 GMT -5
Russia's costs are probably low too for same reason, are we flooded with cheap oil these days?
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Post by 3bid on Dec 17, 2015 9:23:54 GMT -5
Product Tankers Turn Back as European Storage Fills
By Reuters 2015-12-15 12:24:07 | The Maritime Executive
Tankers laden with diesel heading from the U.S. Gulf Coast to Europe are turning around in mid-ocean as European storage is nearly filled to the brim.
At least three 37,000 tonne tankers - Vendome Street, Atlantic Star and Atlantic Titan - have made U-turns in the Atlantic ocean in recent days and are now heading back west, according to Reuters ship tracking.
It is unclear if the tankers will discharge their diesel cargoes in the Gulf Coast or will await new orders, according to traders and shipping brokers.
"European prices are so soft," one trader said. "Sellers must see better numbers."
The Vendome Street was more than three quarters of the way to Europe, turning around just 800 miles off the coast of Portugal. Ship brokers said a turnaround so late in the journey would come at a cost to the charterer.
European diesel prices and refining margins have collapsed in recent days to six-year lows as the market has been overwhelmed by imports from huge refineries in the United States, Russia, Asia and the Middle East.
At the same time, unusually mild temperatures in Europe and North America further limited demand for diesel and heating oil, ptting even more pressure on the market.
Gasoil stocks, which include diesel and heating oil, in the Amsterdam-Rotterdam-Antwerp storage hub climbed to a fresh record high last week.
Prompt Low Sulphur Gasoil futures, the European diesel benchmark, have been trading at sharp discount to later contracts, in what is known as contango, prompting traders to store product.
In some cases, traders opted to store product on tankers. At least 250,000 tonnes of diesel are currently anchored off Europe and the Mediterranean seeking a discharge port, according to traders.
"The idea is to keep tankers on the water as long as you can and try to find a stronger market," a trader said. (Editing by William Hardy)
www.maritime-executive.com/article/product-tankers-turn-back-as-european-storage-fills
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Post by thunkerdrone on Dec 17, 2015 16:10:05 GMT -5
Trump predicts that Iran is going to take over Iraq, which would mean that America is due back in Iraq soon
to prevent it, or ....Iran takes over even more of the world oil supply.
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