BAKU, Azerbaijan, March 10
By Elnur Baghishov - Trend:
Iran's role will be smaller and less important in OPEC, Iranian expert on energy issues Mehrdad Emadi told Trend.
According to Emadi, there are two main reasons why Iran does not play a major role among OPEC member states.
Emadi said that while Iran is third in terms of oil reserves, it doesn't matter, because it has the technology to increase its production compared to other countries.
"That's right, Iran has large oil fields, but it is capable of producing a small amount of oil," Emadi said.
He said that if the oil sector is not investing in technology properly, then it will be impossible to export oil.
"For example, this did not happen in oil reserves in the Ilam province. Although Iran wants to extract oil from these wells, it has realized that it is not possible," Emadi said. "Oil recovery in the Iranian oil industry is moderate; prior to the sanctions, recovery was 18 percent, at present, it is 5.5 percent. Saudi Arabia's recovery 52 percent, in Iraq, it is 47 percent.”
Emadi said that US oil sanctions against Iran have created a lack of net investment in Iran's oil sector.
According to the expert, great race has started between OPEC member states.
"Saudi Arabia has announced that it will enter the shell oil market. Russia, on the other hand, is pursuing a policy of becoming a major player in the oil market," he said.
Emadi added that the second reason why Iran's role in OPEC is less important is that there are political tensions among Saudi Arabia, the UAE and Kuwait and Iran.These countries by pulling Iraq on its side and reduce Iran's importance in the oil market.
In general, Iran has 125 oil fields and 59 gas fields. Iran's total hydrocarbon reserves are 836 billion barrels. With its technology equipment, it can produce 239 billion barrels. Iran can use 29 percent and 71 percent remain underground.
The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions included Iranian oil exports, more than 700 banks, companies and individuals.