Beware Saudi Arabia! Iran, Iraq plan to join forces and crash the world's oil market

[shaarona]

Beware Saudi Arabia! Iran, Iraq plan to join forces and crash the world's oil market Beware Saudi Arabia! Iran, Iraq plan to join forces and crash the world's oil market 4.00 6

Published January 30th, 2014 -


Iraq is poised to triple its crude oil output from three million barrels per day to nine million by 2020.
And Iraqi ministers are helping their Iranian counterparts to attract investment in oil ahead of the possible lifting of international sanctions imposed on the country. (http://www.albawaba.com/business/iran-eu-nuclear-deal--548082)

Hussain al-Shahristani, Deputy Prime Minister for Energy in Iraq, told a conference in London: "We feel the world needs to be assured of fuel for economic growth.

"Iran has been in touch with us. They want to share our contracts model and experience."

The ambitious plan could see Iraq clash with Saudi Arabia - which pumps 9.8m barrels per day and uses its influence in OPEC to keep oil prices above $100 a barrel.

And if Iraq and Iran decide to sell more crude on the open market rather than stick to OPEC’s quotas, the price of oil could plummet (http://www.albawaba.com/business/oil-prices-2014-540591) - potentially leading to lower petrol prices.

The combined oil reserves of Iraq and Iran are greater than that of Saudi Arabia - the world’s second largest producer of crude after Russia.

Oil companies are understood to be lining up to win Iranian oil deals if sanctions imposed by the U.S. and EU are eased.

Experts warn that, if the plan is to be successful, both Iran and Iraq would need massive investment in pipelines and ports to export its crude oil.

http://www.albawaba.com/business/iraq-iran-saudi-oil-551255

[Peter1469]

But lowering the price of crude will make the new fields in North America unprofitable.

[MrJimmyDale]

But lowering the price of crude will make the new fields in North America unprofitable. If they are unprofitable then shut em' down till we need them. Let the market decide.
"Big Oil" would keep them profitable and running. They just wouldn't be making the profits that they want to make.

[Peter1469]

There is a ppb where any well is no longer profitable.

[shaarona]

But lowering the price of crude will make the new fields in North America unprofitable.

There are a number of aspects to this.

To grow their production Iran and Iraq need HUGE investments in pipelines, drilling and exploration and refineries. If they risk crashing the market, who will invest in them?

[MrJimmyDale]

There is a ppb where any well is no longer profitable. If we can get it cheaper from the ME than we can pump it ourselves then I say get it while the getting is good. I wouldn't want to put ourselves in the corner of being overly dependent(more than we already are) on ME oil but if it becomes a buyers market....use them for all that we can.

[Peter1469]

There are a number of aspects to this.

To grow their production Iran and Iraq need HUGE investments in pipelines, drilling and exploration and refineries. If they risk crashing the market, who will invest in them?


True- they want those contracts let, once the workers are in place, they are in a better position.

[shaarona]

True- they want those contracts let, once the workers are in place, they are in a better position.

Libya is losing oil companies. Syria's production is in the tank. I think they have to solve some of the problems and settle down.

[Peter1469]

Libya is losing oil companies. Syria's production is in the tank. I think they have to solve some of the problems and settle down.

They need to look at other options for economic growth.

[shaarona]

They need to look at other options for economic growth.

I agree..

[Heyduke]

wait, how many Saudi threads do we need? Confusing. Pretty soon Code Section is going to start an "Anarchists response to Saudi Arabia" thread.