Category: Crude Oil Reserves

The United States has long had its eyes on Iran. In fact long ago the US interfered in the internal affairs of Iran by assisting Mohammad Reza Shah Pahlavi, the Shah of Iran, to overthrow the democratically elected Prime Minister Mossadegh government. The Shah, with US support, served as the brutal “policeman of the Mid East” and was the monarch of Iran from September 16, 1941, until the Iranian Revolution on February 11, 1979. The American government was surprised and dismayed at this event and has been at odds with Iran’s complex structure of Ayatollah Khomeini centered government ever since.

At least part of the long standing interest on the part of the US in Iran may stem from Iran’s position as containing vast oil and gas reserves. Dick Cheney would be a good man to ask about that issue.

Iran is a founding member of the Organization of the Petroleum Exporting Countries (OPEC), and ranks among the world’s top three holders of proven oil and natural gas reserves. Iran is OPEC’s second-largest exporter after Saudi Arabia, and is the fourth-largest exporter of crude oil globally after Saudi Arabia, Russia, and Norway. Natural gas accounts for half of Iran’s total domestic energy consumption, while the remaining half is predominately oil consumption. The continued exploration and production of the offshore South Pars natural gas field in the Persian Gulf is a key part of in Iran’s energy sector development plan.

Saudi Arabia is the biggest oil producer in the Organization of the Petroleum Exporting Countries (OPEC). With one-fifth of the world’s proven crude oil reserves, some of the lowest production costs, and an aggressive energy sector investment initiative, Saudi Arabia is likely to remain the world’s largest net oil exporter. From January-November 2006, Saudi Arabia supplied the United States with 1.4 million barrels per day of crude oil, or approximately 14 percent, of U.S. crude oil imports.

Oil Exports and Shipping:

Saudi Arabia is the world’s largest (net) oil exporter and is a key oil supplier to the United States, Europe and Asia. Saudi Aramco’s plans to increase oil production capacity in the medium term hinges on the maintenance and expansion of the petroleum pipeline network, export facilities, and shipping capacity.

Saudi Arabia is a key oil supplier to the United States, Europe and Asia. In 2005, Saudi Arabia exported an estimated 8.6 million bbl/d of petroleum liquids, of which 7.2 million bbl/d were crude, 553,000 were refined product and 793,000 bbl/d NGLs. According to press reports, in 2006, Saudi had a marginal increase in exports based on long-term contracts to export just under 7 million bbl/d of crude worldwide. Asia, including Japan, South Korea, China and India, now receives an estimated 50 percent of Saudi Arabia’s crude oil exports, as well as the majority of its refined petroleum product and NLG exports. Japan remains the single largest importer of Saudi crude in Asia. In 2005, According to the IEA, Japan imported an estimated 1.5 million bbl/d on average.