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Page added on January 14, 2015
Iran out billions of dollars in oil revenue
A decline in oil exports, largely because of Western economic sanctions, has cost the Iranian economy more than $100 billion, a senior official said.
Iran under the terms of a November 2013 agreement is allowed some oil exports in exchange for commitments to curb some of its nuclear research activity. Mohsen Rezaei, secretary of the influential Expediency Council, said exports since have dropped by 1.5 million barrels per day and inflicted more than $100 billion in revenue losses.
Iranian officials have said the government is working to decrease the share of oil revenues in the budget. The government in early January said non-oil exports from the beginning of the Iranian year, which starts in March, increased to $35 billion, or about 20 percent year-on-year.
Iran emerged from recession last month, which a government spokesman said came as a result of heavy government investments in national development projects. Rezaei, however, said a budget that relies in part on oil revenues could incur heavy damage should the low price of oil continue.
“Over the past two months, price sanctions, which happened with the help of countries like Saudi Arabia, have caused a 50 percent decline in Iran’s oil price,” he said.
Iran historically has been a hawk in the Organization of Petroleum Exporting Countries, advocating for a price per barrel of around $100. OPEC leader Saudi Arabia, the largest producer of the 12-member group, has said it would hold its production steady, rather than trim it in an effort to boost global prices.
Iranian officials have said they envision a budget for the next calendar year based on oil priced at about $70 per barrel, about 20 percent higher than the current market price.
25 Comments on "Iran out billions of dollars in oil revenue"
Makati1 on Wed, 14th Jan 2015 7:36 am
Iran will survive, but the US economy surviving is questionable. The oil related layoffs have begin and will only speed up as the year progresses, not to mention the corporate bankruptcy.
The distraction of the sheeple requires that the finger of fate be pointed at anyone but the US. Americans really are becoming a herd of sheep.
Davy on Wed, 14th Jan 2015 7:57 am
Iran is a basket case Islamic theocracy in a state of population overshoot and ecological degradation in a region of overshoot. It has natural disaster issues and water problems. It is beset by an unstable Afghanistan with a flow of drugs and other social ills. It is at odds with its Sunni Islamic competition in a unholy struggle of death and destruction that may bring down the entire Islamic region in an ash cloud of battle and destruction. Iran is now suffering not only economic sanctions but also a reduction in an already low oil revenue. Iran’s economy is following the policy of a large military and social programs supported by oil revenue. Iran’s economy is undiversified and resource heavy mainly oil. This is always a bad policy. Iran’s two closest allies are suffering similar fates. One such ally is a terrorist group Hezbollah with an alliance with the failed state of Syria.
How could one ever look at this being a country with a positive outlook? That person must have an agenda IMO. An agenda that sees Iran as a competitor to the evil empire. Iran has been marginalized and at the moment is a powder keg of potential ME disruption. It is on the cusp of either normalizing global relations or seeking confrontation on several fronts. An Iranian war is almost as bad a situation as a Russian war. There is little idea where a war in that area will stop. Let us hope cooler heads prevail on all sides.
peakyeast on Wed, 14th Jan 2015 8:45 am
Yeah Iran is a basket case…
They should never have removed the democracy that was installed by the US and UK back in 1953.
http://en.wikipedia.org/wiki/1953_Iranian_coup_d%27%C3%A9tat
I suppose the definition of a democracy in the US is what normal people would define as religious dictatorship – since they installed the Shah back then.
dave thompson on Wed, 14th Jan 2015 8:55 am
Silly PR. With the down turn in oil price, ALL oil producing nations are bringing in less money.
bobinget on Wed, 14th Jan 2015 10:27 am
Just say, you had a stripper well, not at all uncommon here in the US. This well has produced
about 1.2 barrels p/d for the last 29 years.
Should you shut-in that well till oil prices go higher?
After all, in time, a month, a year you will get double or perhaps triple revenue you receive today.
http://www.ft.com/intl/cms/s/0/f72c4c2c-8340-11e4-b017-00144feabdc0.html
Costs are simply to high to keep the average stripper well in operation.
If you are Iran or Venezuela or Libya or Nigeria and need to ‘make payroll’ so to speak,
were do you go for that ‘bridge loan’?
http://www.nytimes.com/2009/02/21/business/worldbusiness/21yuan.html?_r=0
“China goes on shopping spree”
cute title for this most serious of problems for the US. I’ve been saying, on line, for two years, China is on a (oil) buying tear. Only now, in this low price environment is China able to really stick it to us.
Forget about Libya, Iran, Nigeria, Syria, North Africa in general, Where on Earth will the US find Venezuelan replacement crude? If the aforementioned exporters were able, they are not,
to replace one million Venezuela’s B p/d?
So far, the only answer is Iran and Iraq and Saudi Arabia. IOWs, greater ME dependence.
Have a teen-age boy who loves video games.
Make sure he (or she) gets a flight program to
opperate drones. There will be full employment
in that field, I promise.
Apneaman on Wed, 14th Jan 2015 10:50 am
Davy, your description of Iran sounds a lot like California. Except California has more competing magical thinking groups.
Apneaman on Wed, 14th Jan 2015 10:53 am
California still needs a ridiculous amount of rain to end its drought
http://www.vox.com/2015/1/13/7538163/california-drought-rainfall
Mountaintop sensor finds high methane over LA
http://climate.nasa.gov/news/2219/
Davy on Wed, 14th Jan 2015 10:56 am
Peak yeast does your comment make Iran any more or less a basket case? If we wanted to we could go all the way back to you European colonial lingers that are responsible for the majority of the original world problems. Just imagine a world without Europeans ever subjugation every corner of the world. So if you want to point fingers point them back at yourself. I fully acknowledge US sins but please let’s acknowledge all participants in global sin.
Davy on Wed, 14th Jan 2015 10:58 am
AP, I bet you can’t wait until all those Californian migrants head up into the cooler wetter Canadian climate.
Apneaman on Wed, 14th Jan 2015 11:33 am
You betcha, Davy. I’m going to make my fortune selling them New Age woo woo accessories; Dream Catchers, Crystals, Incense, Candles, etc. I don’t really know the lingo, but I have the only tool one ever needs to sound like a well seasoned Guru.
New Age Bullshit Generator
http://sebpearce.com/bullshit/
Perk Earl on Wed, 14th Jan 2015 1:03 pm
On a slightly different bend, I was wondering this AM if QE/Zirp/cash for clunkers, Obama re-fi, and all other forms of stimulus artificially providing the foundation for oil north of 100 dollars (but now QE ‘action’ at least is gone in the US) oil price is dropping as far as it has been due to a sharp ‘opposite reaction’ in essence to make up for the time it was over 100.
In other words, the price of oil should have been more like what shortonoil suggests at about $76 a barrel, but instead due to stimulus it was over 100, and now QE has been removed (in the US) it’s now over-reacting to a much lower price.
You know the old scientific adage, ‘For every action there is an equal and opposite reaction’. Possibly that is the primary cause of the price response going so low. In this respect we would expect oil price to slowly rise back up at some point to the 76 dollar amount short suggests it should be.
bobinget on Wed, 14th Jan 2015 1:57 pm
car·tel
kärˈtel
noun
an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.
“the Colombian drug cartels”
historical
a coalition or cooperative arrangement between political parties intended to promote a mutual interest.
Poster’s notes:
The duty of OPEC cartel was to keep oil prices
within a trading range, suitable.
US deep water, Argentine shale oilers, Russian, Mexican, Canadian, Norway, oily ones are not members. Maintaining cartel discipline…..
Not Their Job Description.
If the Saudis are shorting oil markets as you can be certain they are, KSA will come out of this with huge MONETARY profits, little else.
The Saudi positions as the world’s swing producer grows more tenuous daily. “It’s geology stupid”.
IT’S OBVIOUS.. Today’s EIA report is showing;
“Total products supplied over the last four-week period averaged 19.9 million barrels per day, up by 3.9% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged 9.2 million barrels per day, up by 7.1% from the same period last year. Distillate fuel product supplied averaged over 3.8 million barrels per day over the last four weeks, up by 7.8% from the same period last year. Jet fuel product supplied is up 2.7% compared to the same four-week period last year”.
GROWTH
Today’s market sell-off is all phony baloney.
Combine Venezuelan, Russian and Iranian and Iraqi, production, if truly unified, can and will carry the day. Exactly What Day is still a mystery.
The Second Coming of another major bombing event intended to bring the Syrian situation to a head. (its ok to kill folks en mass provided you have,
A Flag and Highly Mechanized killing machines).
None of this ultimate single use, ‘smart bomb’ stuff. AKA “suicide bombers”
Bottom line, I don’t believe even Saudi Wells can
hold out long enough to beat down Iran and Russia
backed up with Chinese money.
peakyeast on Wed, 14th Jan 2015 2:13 pm
Davy – it doesnt change a thing. But when you say that they are a basket case – it should also be said why they are a basket case now – and there i believe the US and UK has a big part of the responsibility.
Especially since a lot of people dont seem to understand why they themselves are so afraid and aggressive against Iran.
Plantagenet on Wed, 14th Jan 2015 2:57 pm
Iran can cut production any time they want. But as long as Iran is selling every barrel they can then they are responsible for the oil glut just like all the other oil producers
GregT on Wed, 14th Jan 2015 2:59 pm
I had a friend who was from Iran. She moved to Canada with her teenaged daughters after her husband passed away. After living here for 8 years all three of them had enough of the shallow, consumer minded population here. They moved back to Iran last year.
Dredd on Wed, 14th Jan 2015 3:33 pm
The price of poison yada yada yada.
bobinget on Wed, 14th Jan 2015 4:02 pm
Apart from U.S. & Saudis, the two regions with greatest potential to increase supply are Libya & Kurdistan.
Libya seems to have caught the extreme Islamic bug with Libyan Dawn in Tripoli seeming to dominate & little sign of settlement.
Iraq imo very unlikely to meet expectations. In fact hard to know what’s going on there ( worth looking at Debka today. They say Gen.Soleimani the commander in chief of iran’s revolutionaty guard wounded in Iran & everything seems to indicate much greater Iran involvement. Even Gen Dempsey seems to be encouraging this. that hardly pleasing for Israel/Saudis )
But this article by Motley fool worth looking at. gulf Keystone one of the major players in Kurdistan & it gives an idea of costs.
http://www.iii.co.uk/articles/216801/how-low-oil-price-will-impact-gulf-keystone-petroleum-limited?context=LSE:GKP
What media ( & market ? ) constantly ignore is that different crudes are priced differently AND there are costs of transportation.
With Kirkuk disputed & production down & further military activity planned in that area & lower oil prices, I just can’t see how N.Iraq will greatly increase production.
If U.S. production falls because of price & price then rises, Saudis won’t need to cut they may well have to increase.
In any case increasingly Iraq, Iran & libya are more political enemies than business partners in Opec. So increasingly Saudi decisions on whether to increase/decrease will be tempered by political implications.
The result of Saudis effectively abandoning role of swing producer may well be vicious price swings as the normal.
Odd you know, that was one of the predictions of the much maligned peak oil aficionados.
Speculawyer on Wed, 14th Jan 2015 4:11 pm
Well, Iran, this would be a great time to sign an agreement that reduces uranium enrichment, allows inspections, and removes sanctions against you.
We are ready for you to join the rest of the free world.
Or as Monty Hall would say . . . “Let’s make a deal!”
GregT on Wed, 14th Jan 2015 6:28 pm
There has only ever been one country that used Nukes on a civilian population, twice ……………just saying.
Whether or not Iran builds a Nuclear bomb is irrelevant. If she used it Tehran would be vaporized in a matter of minutes. The US knows this, and the Iranians know this.
Iran is one of three nations that are still hold outs to the international banking cartel. That’s right Spec, the ZIONISTS. It is the rest of the world that isn’t free, not Iran. The very reason that the US finds herself in such a bind, is from massive debt loads. There is no good reason for an independently owned bank to be printing a nation’s currency with interest attached, other then to line the pockets of the bankers themselves. The debtor is always enslaved by the creditor.
You have fallen for the propaganda again Spec, but not to worry, you are definitely not alone. The vast majority of people don’t remember what the US achieved independence from, never mind where money comes from.
Makati1 on Wed, 14th Jan 2015 6:37 pm
Speculawyer, Iran is only dong what it is entitled to do as a sovereign country. There is no real ban against nukes except by those who already have them and want to keep the domination going. North Korea is a prime example of a small country with nukes. It keeps the terrorist Empire at bay.
I predict that, if the US doesn’t start a nuclear war before that, there will be many countries with nukes by 2025. Either by theft, purchase or help from the anti-Empire countries. That is how Israel got theirs and probably Pakistan and India. I see Japan as one of the first to have them. We shall see.
Apneaman on Wed, 14th Jan 2015 6:40 pm
Iran: A Nuclear Program, a Monkey in Space, No Water
http://www.dailyimpact.net/2014/01/31/iran-a-nuclear-program-a-monkey-in-space-no-water/
Apneaman on Wed, 14th Jan 2015 7:08 pm
The French PTB send a message to the plebs. Let Fascism reign.
Days After Free Speech Rally, France Arrests 54 People for Offensive Speech
http://www.commondreams.org/news/2015/01/14/days-after-free-speech-rally-france-arrests-54-people-offensive-speech
GregT on Wed, 14th Jan 2015 7:33 pm
Apnea,
From your linked article:
“France ordered prosecutors around the country to crack down on hate speech, anti-Semitism and glorifying terrorism,”
Anti Semitism is wrong? Yet dissing Islam is OK? Hmmm.
Speculawyer on Thu, 15th Jan 2015 4:44 pm
“Speculawyer, Iran is only dong what it is entitled to do as a sovereign country. There is no real ban against nukes except by those who already have them and want to keep the domination going.”
Well, Iran signed the non proliferation treaty. They are not supposed to build a bomb. They are free to do nuclear power. But the rest of us would like to make sure that is all they do.
And, guys, don’t wrap the tinfoil on so tightly. Cuts off circulation.
GregT on Thu, 15th Jan 2015 10:11 pm
“Well, Iran signed the non proliferation treaty.’
Well, so did the US. 47 years ago. But of course the NPT only applies to other nations, right Spec.
“They are not supposed to build a bomb.”
Nobody was ‘supposed’ to build the bomb Spec. But the US lead the way, using German scientists, and went on to kill hundreds of thousands of innocent people.
“They are free to do nuclear power.”
Well, glad to hear that you have given them permission Spec. I’m sure that 80 million Iranians feel relieved, now that you have told them what they can or cannot do.
“But the rest of us would like to make sure that is all they do.”
The rest of us? So now you are speaking for whom Spec? Your alter-personalities?
“And, guys, don’t wrap the tinfoil on so tightly. Cuts off circulation.”
If by tinfoil hats you would be referring to conspiracy theorists, I wear my hat proudly. People conspire, they always have, and they probably always will. Those that can’t figure out such a simple concept, I affectionately refer to as sheep.