Iran Oil Production is Drying Up - Crude Prices Fall????

[Ugnmoose]

:wtf:

http://www.rawstory.com//news/2007/Newspaper_Irans_oil_production_drying_up_0220.html

A report in today's Wall Street Journal paints a picture of an Iran in the early stages of an energy crisis. Although long considered an energy giant, the Persian Gulf country is facing the prospect of an oil output crash within a decade, and it may start rationing gasoline next month.

Bill Spindle writes in the Journal this morning that Iran's oil production is stagnating. Demand in the country is high because the government makes the price of gasoline very cheap. At the same time, "a combination of Western sanctions and Iranian policies has discouraged foreign investment in oil fields," resulting in a lull in production growth. The problem is so severe that Iran's government "shelled out at least $7 billion on gasoline imports alone so far this fiscal year."

Can anyone spell PRICE MANIPULATION? Why didn't this report send the markets into a frenzy?

[Skidmore]

1. Are we panicking at DU over this?

Just askin'?

[Turbineguy]

2. I seem to recall that

Iran exports crude oil but imports the products.

[Norquist Nemesis]

3. Seems to support their argument about needing nuclear power

vs nuclear bombs.

[Ugnmoose]

4. That's exactly what I was thinking?

It may also confirm our suspicions about the Neocon Oil Grab.

[alfredo]

5. I would really like to know the truth of the matter. The UN inspectors

found no evidence of them making nuclear weapons, and let's face it, they have more credibility than bush.

[Norquist Nemesis]

7. Isn't Iran also signers of the non-proliferation treaty (NPFL)

unlike the U.S.?

onedit: I'd like to know the truth also. The UN has been suspiciously silent and Bush isn't holding them up as he was with Iraq and "UN Resolution 1442".

[alfredo]

14. I haven't heard much lately either.

[AndyA]

6. That's exactly what I thought when I heard this.

Iran has always said they want nuclear for energy production, not war use. The argument has always been why do they need nuclear when they have so much oil? (I remember making that argument a few times myself.)

Now the reason (or the excuse) becomes a bit clearer, given this news.

[Norquist Nemesis]

8. But having that oil is precisely why they would want another source

for energy, IMO. Consuming your #1 domestic resource at ever increasing rates would seem to me a path toward destroying yourself. Export it and/or trade for resources you're unable to have and it's a win-win. :shrug:

[AndyA]

10. Iran is entitled to do what they must to produce energy for its use, is it not?

Nuclear must be handled responsibly, or we wind up with another Chernobyl. So in that respect, I think international safeguards must be in place to ensure responsible maintenance and safety procedures at nuclear facilities.

But I'm sure other countries would prefer the U.S. not have nuclear weapons, especially given the idiot with the itchy finger on the button.

So who has the final say? We do because our weapons are bigger than yours? :shrug:

[Richard Steele]

11. Also, ECONOMICS. The remaining oil becomes more valuable every passing day.

And it's value will rise ever more quickly as it becomes
scarcer over the next few decades.

Using it NOW makes no more economic sense than heating a
house by burning stacks of high-yield savings bonds.

[Richard Steele]

9. This story won't get airtime because it is evidence that Iran NEEDS nuclear power plants.

And the official USA propaganda networks are pushing
the claim that Iran could -ONLY- be using nuclear technology
to build bombs.

[Sir Jeffrey]

13. But couldn't this story also be used...

to drum up support for bombing Iran?

Basically, a lot of voters are put off by the threat of an Iran attack because they fear a massive oncrease in the cost of oil/gas. Death means nothing to them....they only care about gas prices.

If Iran's oil deposits are drying up, couldn't that in some twisted conservative logic be used to say to Americans that attacking Iran will not impact global oil prices too much?

[rustydad]

12. Oil vs electricity

You have to understand that Iran wants nuclear power to produce electricity. Neither Iran nor almost any large country does not produce electricity with oil. They use coal if they have it and natural gas if they have that. Iran has lots of NG and wants to export it for cash. As many first world countries shy away from nuclear (Europe {except for France} and the US)they will pay dearly for NG via pipeline or liquefied NG. The ME countries do not have the phobia we do about the danger of nuclear power. That is why oil is not going up in price right now. Also the world wide temps in January were the highest ever recorded. That reduces the need for heating oil and hence crude oil. But don't count on this lasting for long. As the summer driving season approaches oil will be back up to $80 a barrel or higher. If we bomb Iran count on oil in the $100+ range. Time for all to get a bike. Bob