Human Hopes International

 Oil Crisis

Oil prices are in a state of flux or so we are told. But the truth of the matter may be far simpler than that; maybe production cannot meet soaring global demand.

Yet behind the easy headlines, major oil fields are withering, no new ones are being found. Virtually unreported is    very slow development of Iranian Oil Fields notable is South Pars which is already fourteen years behind schedule due to US sanctions.   US diplomacy has blocked transportation of Iranian Natural Gas to Turkey, Europe and India.

Millions of Cubic meter of Natural Gas has been flared on the Iranian side of Iran-Turkey border.  This amount of hydrocarbon will definitely reduce pressure on market. 

Then factor in the millions of "lost" barrels of oil that were misrepresented by Royal Dutch Shell, to the tune of 23% of their total reserves. Mix up the fact that no major oilfields were discovered in the last 18 months, despite increased technological innovation.

As prices hit record highs, some analysts' remarks, and much of the comment in the media, are directed at uncertainty surrounding Russian company Yukos, Iraqi pipeline attacks and Nigerian strikes, thus ignoring most important Iranian factor.

Emerging economies such as China and India, added to rising American demand, are putting pressure on the price of energy. Faced with record prices and a surge in global demand, oil producers notably Iran must be encouraged to invest heavily if they want to increase output further, analysts say. 

OPEC supplies 41% of worlds crude oil and 15% of worlds natural gas requirement. Iran is having largest gas reserves in OPEC. The unfortunate US Policy to block the transportation of Iranian natural gas to Europe and India is resulting in more crude oil consumption and more carbon dioxide in air because Natural Gas is more environment friendly and produce less green house gases compared to oil or coal.

More than two decade old strict US sanctions on development of Oil Fields in second largest OPEC oil producer in Iran combined with problems in Russia and Iraq are showing now the expected results. You do not have to be mathematician to understand that if new oil fields are not developed in time or oil is not reached to the market and transportation of natural gas is blocked then prices will shoot up.

Send mail to  info@humanhopes.com and  humanhope@yahoo.com with questions or comments about this web site.