Sour & Sweet Milestones of Oil Industry in Last Year
اشتراک گذاری :
Iran’s glorious return to world oil market following the implementation of the JCPOA was a new dawn for its oil Industry and a victory for Iran’s Ministry of petroleum diplomacy. As a matter of fact, petroleum Ministry card report is satisfactory.
Naft & Energy Milestones Agency (NaftEMA): Oil Industry has spent milestones in the year of 1395 (20 March 2016-20 March 2017). In one side of the coin, one of the positive events was OPEC’s deal on cutting its oil production from 33.8 million barrels a day (b/d) to 32.5 million b/d. to prop up prices and to stabilize and balance the global oil market. Iran’s glorious return to world oil market following the implementation of the JCPOA was a new dawn for its oil Industry and a victory for Iran’s Ministry of petroleum diplomacy. In gas field, launching Iranshahr-Zahedan gas pipeline project offers the development to Sistan and Baluchestan Province and provide a potential opportunity to export gas to Indian subcontinent in the future.
Iran produces 420mn m³/d of gas from South Pars. With regard to inauguration of phases 14, 17, 18, 19, 20 and 21, the total is to exceed 570mn m³/d. Iran plans to produce more than 700mn m³/d of gas from all 24 phases of South Pars by 2018. This event will have economic, political and geopolitical implications.
On Petrochemical industry, five petrochemical projects are expected to go on stream by the end of the current fiscal year in March 2017. Iran's annual installed petrochemical capacity, stands at 64 million tons, although plans are in place to boost it by 40 million tons over the next five years and reach 100 million tons a year. Iran exported 10 million tons of petrochemicals, worth $9 billion, in the first 10 months of the current fiscal year Iran holds 38% of the petrochemical market in the Middle East. As a matter of fact, petroleum Ministry card report is satisfactory.
But in the other side of the coin, President Trump’s policies on energy field, will revive the US shale industry, then the U.S. will become the world’s biggest oil producer this year. Trump could destroy OPEC and its manipulation of the oil market. Of course, non-commitment of some OPEC members and non-OPEC countries could destroy this game plan. The US also will become the largest LNG supplier and exporter (about 8 billion cubic feet), marks a turning point in LNG global market which will face stiff competition from leading exporters in Gas Exporting Countries Forum (GECF). The US shale gas will bring a tsunami of cheaper petrochemical products which will shift the petrochemicals market.
Iran's serial incidents in petrochemical complexes occurred because of the lack and support of HSE guidelines. Petroleum Ministry responded in an official notice to certain failed privatization policies and cut of feedstock to petrochemical complexes that not observing the HSE mandates. In the other event, Turkmenistan halted gas export to Iran, but Iran’s Petroleum ministry could manage the crisis by the promotion of saving through the media and public solidarity in gas consumption.
Nadali Bay- Chief Editor & Director of Napta Gita Think-Tank