Fuelishness! Feed: Iran Removes Oil Chief Torkan Amid Political Unrest; Iran’s oil supply and potential for disruption; [Flashback 2006] Why Iran oil cutoff could be suicidal
Some fresh Fuelishness!
- Iran Removes Oil Chief Torkan Amid Political Unrest – The sudden dismissal could raise concerns that political unrest in the second-largest member of the Organization of Petroleum Exporting Countries may be spilling over into the country’s oil industry.”If his removal is for political considerations, it is sad to bring in politics into the oil industry,” Manouchehr Takin, an analyst covering Iran at the U.K.-based Centre for Global Energy Studies. “He was considered a ‘doer’, someone getting things done. He got projects moving.”
- Iran’s oil supply and potential for disruption – Disruption to Iran’s oil exports would drive up the oil price as refiners that buy the Islamic Republic’s oil would be forced to buy elsewhere. Strikes in the run up to the Iranian revolution in 1978 stopped the flow from the southern fields, and the country’s capacity has never recovered to the 6 million bpd of before the revolution.The disruption was keenly felt by top oil consumer the United States, which had to ration fuel. The shortfall ruptured global supply lines, sparked panic-buying and saw a sharp rise in oil prices that contributed to the U.S. recessions of 1980 and 1981.
Iran now pumps around 3.8 million barrels per day, or about 4.5 percent of global supply.
- [Flashback 2006] Why Iran oil cutoff could be suicidal – Iran’s nuclear standoff with the United States, Europe, and other nations has led to considerable speculation of $100-per-barrel oil and $4-per-gallon gasoline in the US. Such high prices might kick off a worldwide energy crisis and recession.