Jim Letourneau's Blog

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Iran Out of Oil?

Roger Stern is an economic geographer working out of Johns Hopkins University. His recent analysis of Iran’s oil production indicates that it is declining by 10–12% per year. He extrapolates that Iran’s oil export income could disappear entirely by 2015. His key statement follows:

Energy subsidies, hostility to foreign investment, and inefficiencies of its state-planned economy underlie Iran’s problem, which has no relation to "peak oil."

Iran’s oil fields just need some TLC and a dash of new technology.

Sanctions against Iran’s nuclear program are a related issue. Does Iran need to develop nuclear power or should it be trying to get more oil out of the ground?