The Oil Drum: There’s A New Kid In Town — Iran Versus Kazakhstan

The world oil peak is obviously a popular topic here and many reports look at depletion & production as a function of world supply and demand as a whole. For countries, Chris Skrebowski speaks of Type III depletion which he defines as the tipping point “when a country produces less oil in a year than it did the year before”. But what the OECD countries, along with India and China, are most interested in is the oil export capacity of producing countries because almost without exception (Canada), each OECD member plus China and India must import large volumes of oil to meet their internal demand. If a producer is in Type III depletion or close to it, how severe that depletion is as regards exports will depend on it’s own internal consumption as well as the geology or economics of its existing production. If that domestic demand is high, this describes the worst case for big consumers who can not meet their own demand. Iran is such a country. On the other hand, the best of all possible worlds is a producer country with little domestic consumption and growing export capacity. And that would be Kazakhstan.
much more after the jump to The Oil Drum.