Iran: Oil, Nuclear Power & the Challenges At hand...

Iran continues to claim that its' quest for Nuclear Power is for peaceful purposes. The world continues to think otherwise. There is continued discussion about enhancing the sanctions regime. Yet, some of the statistics that came out a few months ago in a Businessweek Article ON December 11, 2006 shows that Iran has some long-term challenges that it neeeds to deal with. Some of the notable challenges are:
1) Aging Fields: Three-fifths of Iran's output comes from oil that are 50-plus years old;
2) Low Investment: Iran Isn't spending enough to replace output.
3) Oil Politics: Companies linked to the Islamic Revolutionary Guard Corp have gotten $ 8 Billion in development deals;
4) Rising Consumption: Consumption is growing @ 10% a year, forcing Tehran to spend $ 5 Billion annually for imports.

Source: http://www.businessweek.com/globalbiz/content/nov2006/
gb20061130_396971.htm?chan=search retrieved March 13, 2007

Iran's parliament (the Majlis) just passed a law rationing Gasoline. The long-term challenges within Iran cannot be ignored. Iran, though, should be proud of one thing: its' National Oil Company (NIOC) was named one of the new "Seven Sisters" of Oil Companies by the Financial Times.
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