Iran's energy sector review

Rising USD rate by 40 percent and more than 45 cents difference between the rate in the open market and official statistics in Iran caused some serious confusion. Iranian Mehr News Agency reported on Wednesday, that rising USD is happening with out any obstacles. According to the stats of Iran's Central Bank, the USD rate is 11,000 rials, while USD rate in the open market it is 16,000 rials. Just two days ago, the rate was 14,250 rials, while this figure was 10,600 rials last year. Liquidity and bank interest One of the major causes of increasing USD rate is the existence of high liquidity in Iran, which has exceeded equal to over $300 billion, according to the latest statistics by the Central Bank of Iran show. Iranian government cut the subsides since December 2010 and pays more than $3 billion of cash subsides to citizens per month. International Monetary Fund says Iran's liquidity growth in 2012 will reach 15.9 percent as well. Increasing liquidity results in

Twelve OPEC member countries agreed to officially fix cartel's output ceiling to 30 mbpd, a 6 million barrel increase over the ceiling they set in 2008. According to official OPEC reports, member countries ignored quotas and increased their oil production level, which totaled 30.47 mbpd by November of 2011. Six months ago, at a meeting of OPEC oil ministers, Iran, Venezuela and Algeria opposed Saudi Arabia's proposal to increase the OPEC's production ceiling by 1.5 mbpd. This created a split among members and the meeting ended inconclusively. In reality, OPEC's production ceiling unofficially reached more than 30 mbpd in November (with Saudi Arabia's sudden increase of its crude oil production to 10 .047 mbpd), excepting condensate, Libya's increase of its production ceiling again by a million bpd, and Iraq's production increase to 2.135 mbpd . Saudi Arabia's oil production hasn't been more than 10 mbpd since 1980. It is likely that

Iran says it will discuss the international gas prices at the first summit of the heads of state of the Gas Exporting Countries Forum (GECF), which will open in Doha, the capital city of Qatar on November 15. Could Iran, holding almost 16 percent of the global gas reserves, influence the global gas prices in the current state of affairs? Iran is the only member of the GECF, which unites Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago and Venezuela, who insists to control the international gas price by defining the protecting packages at the Forum. But to what extent does it rely on realities? One can suggest the GECF with its eleven members holding 42 percent of the global gas production, 70 percent of the world gas reserves, 38 percent of gas pipelines and 85 percent of LNG trade is giant enough to influence on international gas markets by acting similar to OPEC in determining the oil price. However, Iranian officials have been annou

Despite Iranian officials' constant rejections of releasing the information about the decrease in the country's oil production, The Organization of the Petroleum Exporting Countries' (OPEC) new report confirms dropping of Iranian oil output by 120,000 barrels during the current year. The National Iranian South Oil Company Managing Director Hourmuz Galavand claimed in October 2011 that Iran's current oil production is 3.9 million barrels of oil per day. Meanwhile, Ghalavand said earlier that Iran's oil production reduces by around 300,000 barrels per year because about 80 percent of oil wells in the country are in their second half-life. According to OPEC's new report published on Nov.9, Iranian oil output decreased to 3.578 million barrels per day in October 2011. The country's production was 3.598 million in August and 3.601 million in September. With comparing the figure with 2006, Iran's oil production has fallen by 0.5 mb/d. OPEC'

The economic and political interdependence between the two Persian-language nations - Iran and Tajikistan, with $200 million worth trade turnover is not as vital as the matter of sink or swim, but significantly important for both them. Five mutual trips of Iranian and Tajik presidents over the recent two years demonstrate the significance of bilateral relations between the two countries. Iranian Foreign Minister Ali-Akbar Salehi in a meeting with his Tajik counterpart Hamrokhon Zarifi on the sidelines of Istanbul Conference on Wednesday stressed importance of finalizing joint economic projects. Tajikistan is one of the most vulnerable economies in Central Asia, as it is not as energy-rich as other countries in the Central Asia, the International Monetary Fund said in April. This fact is enough for encouraging any international super power to get a firm footing here. For instance, during independence Tajikistan's goods turnover with China increased roughly by 15 times

Iran, with its largest population on the Caspian Sea shore among other littoral countries, is keen to save the world's biggest inland body of water from pollution and has initiated a "Comprehensive plan to reduce pollution" plan. The Fars News Agency quoted the head of Department of Environment Mohammad-Javad Mohammadzadeh as saying that the plan targets preventing entry of pollutants, including household waste, especially in Gorgan and Mazandaran provinces, to the Caspian. Meanwhile, Abdolreza Karbasi, the deputy head of Environmental Protection of Iran alarmed about the ecological state of beaches, releasing warning to swimmers in the Caspian Sea. "The pollution at some parts of the sea has exceeded the authorized limit by 100 times," he said. Iranian coastal population is around 6 million people, including residents in the regions en route the rivers that flow to the Caspian, whose household waste waters enter the sea without passing through wa

Construction of artificial islands with glorious buildings on them has own aesthetic aspects to attract more tourists. The international law provides legal frames for them, but still puts some limitations. Ecology should not be damaged and the nature should be preserved. Ecologists alarm Does these islands are built with observing these principles? Ecologists alarm not. Kuwaiti periodic head of Regional Organization for the Protection of the Marine Environment (ROPME) Abdul Rahman Al-Awadi warned against building artificial islands, hinting at negative ecological consequences. Construction of artificial islands causes the increase of mud density of the water, entering the waste materials, such as heavy metals massively into the sea. Furthermore, embanking and filling dusts into the sea damages coral reefs, their associated mangrove and sea grass habitats which are providing the food and shelter for a wide range of marine species. But does it worth to go on building thes

Iran says attempting to keep oil production ceiling at OPEC meeting and discussing the gas price at the upcoming Gas Exporting Countries Forum (GECF) are Iran's top agenda. The 160th OPEC meeting, headed by Iran, will be held in the Austrian capital, Vienna, on December 14 and the 11th ministerial meeting of GECF will open in Doha, Qatar on December 2. Iranian oil minister Rostam Ghasemi says maintaining OPEC output due to stable oil prices is major topic to be reviewed in OPEC. Iran's pale clout on international oil market According to the U.S. Energy Information Administration (EIA) report, OPEC members' oil income was $780 billion in 2010 and this figure would hit up US $1 trillion in 2011. The International Energy Agency released 60 million barrels of oil from its 4 billion emergency stocks four months ago to decrease the oil price. Opposing this action by the IEA Iran came out with a strict statement, accusing the western countries of setting 'unfair

Russian Foreign Minister Segey Lavrov proposed ‘step-by-step’ plan to resolve Iran’s nuclear problem two weeks ago during his tour of the U.S. This plan was surprisingly refuted by Iranian president, but was welcomed by Iranian Foreign Minister Ali Akbar Salehi. Lavrov says each step by Tehran towards the IAEA’s concerns should be rewarded by freezing some sanctions or shortening the volume of sanctions. Russia has proposed several plans to solve the Iranian nuclear disputation so far. It included a proposal of forming international nuclear fuel bank at Angarsk site with Iran’s participation or the proposal of shifting Iran’s low-enriched uranium to Russia for making 20-percent enriched nuclear fuel bar for the reactor of Tehran’s Amirabad nuclear research center and others, which failed. On the other hand, the West countries have also made attractive proposals, including economic aids and launching light water nuclear power plants for Iran instead of halting enrichment of uranium and

Iranian ruling Conservatives Coalition formed "Unification Committee" without inviting and involving Iranian President Mahmoud Ahmadinejad’s representatives. This Committee is aimed at unifying conservatives to direct the participation and competition of representatives in next parliamentary election scheduled for March 2012, reported Fars News Agency. This Committee has been formed by influent conservative representatives close to Supreme Leader Ayatollah Khomeini such as Secretary-General of the Islamic Coalition Party Habibullah Asgaroladi, Khamenei's advisor Ali Akbar Velayati and former Speaker Gholamhossein Haddad Adel. The contradictories between Ahmadinejad and Supreme Leader Ayatollah Khamenei began earlier on Iranian Information Minister Heidar Moslehi’s sacking by Ahmadinejad. Khameni did not allow Ahmadinejad to sack Moslehi and then Ahmadinejad abstained from participating at work for two weeks. After that, several Ahmadinejad’s government senior officials in

Russian Deputy Foreign Minister Sergei Ryabkov's statement regarding opening of Bushehr Nuclear Power Plant in the near future has again raised the question of safety of this plant. Ryabkov said that the operations to inject fuel into the core of the reactor of the Bushehr Nuclear Power Plant have been completed and the plant will start working in the near weeks. Bushehr NPP, which is Iran's first and only nuclear power plant, will produce 1,000 megawatt power per year. Its construction was started by Germany in early 1970s and afterwards, was stopped and shifted to Russia in 1995. The safety of the Bushehr nuclear power plant is Iran’s first priority, so Iran has tried to observe all necessary safety precautions before launching the reactor, Iranian Foreign Minister Ali Akbar Salehi said. Launching the station is considered the next success in the nuclear program, which is a priority for Ahmadinejad's government, and Iran tries to launch this plant as soon as possible,

The International Monetary Fund (IMF) predicted the economic growth of Iran at zero for 2011. The IMF estimated Iran’s economic growth at 1 percent in 2008, 0.1 percent in 2009, and 1 percent in 2010. In its 2010 report, the IMF reported that Iran’s GDP growth was at 1.1 percent in 2009 and forecasted the figure to reach 1.6 percent. Iran refused to publicize the official economic development data from 2009. Claiming about a continues rapid economic development in the country, the Iranian president stressed that 1.6 million jobs were opened over the last year and 2.5 million in this year. The Iranian officials link the high index and increase in the price of shares in the exchange observed over the past year, particularly the fact that the index reached its record in the past ten days, with a normal and constant situation in the country. Roughly 375,000 million shares were sold at the Tehran Exchange on Monday. Based on the official data, the share price hit $135 million, which lea

Iranian labor minister Ali Reza Sheykholeslami said that roughly $100 million were allocated in 2011 within the program of creating the working conditions at home, namely, working and earning money at home instead of working in the office. Iranian President Mahmoud Ahmadinejad announced about creating about 1.600.000 new jobs in the country for the last year (the New Year starts in Iran on March 21). He also promised to create 2.5 million new jobs this year. At present, roughly 75 million people live in Iran. The youth represents the most part of the population. According to the statistics, roughly 900,000 young people are able to work per year, that is, minimum 900,000 new jobs must be created to provide these people with jobs. According to the statistics, the unemployment rate hits 14.5 percent in the country. This statistics includes people working an hour per week, students, housewives and soldiers as those provided with jobs. According

Iranian president Mahmoud Ahmadinejad presented "last minute" next year's budget project to Parliament.(the New Year starts on March 21due to Iranian history ). The Parliament needs 45 days to approve the budget draft. Although there is no details given on the information, Ahmadinejad said the total volume of the budget would be 539 billion dollars. In comparison with the current year's budget (from March, 2010 to March, 2011) this figure exceeds it by 46 percent (171 billion dollars) The total volume of the 2010 budget was 368 billion dollars. Ahmadinejad's budget plan submitted to Parliament two months later than expected indicates different factors that may cause its increase. With the cancellation of subsidies in December 2010 the Iranian authorities reduce state expenditures by 57 bln dollars per year. Although the US currency's exchange rate in 2010 was 950 tumens (Iranian currency), it is 1050 tumens in 2011 budget, as well as oil price in 2010 budget

The Iranian people overthrew the rule of Shah Mohammad Reza Pahlavi 32 years ago on Feb.11. The escaped King, who was exiled from the U.S., could find asylum at Egyptian President Anwar Sadat, but after a while he passed away. Today, 32 years later on the same day Hosni Muburak, who replaced Sadat, has resigned. Of course, the dates coincide by chance, but both events have similar features in many cases. The result in Iran is obvious - the first generation of revolutionaries created an Islamic republic, but the revolution is still continuing, despite the fact that the first generation of the revolution are now in the opposition camp. Despite the fact that the second generation leading the country differs in terms of tactics, they continue the mission of the Islamic revolution. But, how the things will be in Egypt? Liberal and democratic forces have harassed and were weakened by the Shah government as a result of pressure. Thus, after the revolution, the Islamists, without enemies and

Iran's prospects to increase production of LNG in the near future are doubtful. Low production levels, the stagnation in gas production projects, and the lack of local infrastructure for the construction of a gas liquefaction plant, outweighs the high demand for gas in the country. As LNG production company head, Ali Kheyrandish said in an interview with the Iranian Mehr news agency, $ 450 million are allocated for the implementation of projects for gas liquefaction, and by 2015 the plan is to bring LNG's production to 70 million tons per year. Last month, Qatar, the world leader in LNG production, brought the export of liquefied natural gas to 77 million tons per year, while launching the 6th and 7th phases of the "Katargaz" project. Leaving behind in 2002 Indonesia, ensuring 21 percent of the world's LNG, Qatar by upgrading its plants, produced 21 million tons of liquefied natural gas in 2006 . Over the past four years, Qatar has been able to increase LNG pr