Anatole Kaletsky, the man who predicted that oil would fall to $20 a barrel last year, now says that Iran could produce oil for as little as $1 per barrel.
Kaletsky’s prediction is raising eyebrows in energy circles, and for good reason: if Iran is able to produce oil at such a low rate, it would prove detrimental to major oil producers like Saudi Arabia and Russia who are already suffering from remarkably cheap oil prices.
Saudi Arabia spends anywhere between $10 to $20 per barrel in its oil production, meaning Iran could severely undercut the market thus endangering Saudi Arabia’s position in OPEC (Organization of the Petroleum Exporting Countries).
“Iran, for example, claims to produce oil for only $1 a barrel.
Its readily accessible reserves — second only in the Middle East to Saudi Arabia’s — will be rapidly developed once international economic sanctions are lifted,” writes Kaletsky in a column for The Guardian.
Its readily accessible reserves — second only in the Middle East to Saudi Arabia’s — will be rapidly developed once international economic sanctions are lifted,” writes Kaletsky in a column for The Guardian.
Kaletsky cites a release from the National Iranian Oil Company website which quotes Iranian Central Oil Fields Company President Salbali Karimi as saying: “with the implementation of the existing plans, we expect oil and gas production costs to reach a minimum.”
The piece notes that the central oil fields in Iran can produce oil at “$1-$1.50 a barrel.”..
The piece notes that the central oil fields in Iran can produce oil at “$1-$1.50 a barrel.”..
No comments:
Post a Comment