Wednesday, February 13, 2013

Oil Sanctions Cost Iran $40 Billion in 2012

Oil Production in January Hit 30-Year Low

Iran lost an estimated $40 billion in 2012 in oil export revenues, the International Energy Agency (IAE) reported today. Meanwhile, oil production in January hit a 30-year low. (Reuters, 13 February)

Iranian oil output fell to 2.65 million barrels per day in January, and the fall is likely to continue, the IEA said in its report. In 2011, before the oil sanctions, Iran produced 3.7 million bpd.

On 6 February, a new round of U.S. sanctions went into effect, barring Iran from repatriating earnings from its oil exports, depriving the country of much needed cash. The countries that buy Iranian oil will have to retain their payment for the oil and Iran will be able to use the proceeds only to buy goods in the countries where it exports its oil, effectively bartering oil for locally produced goods at those countries.

For Iran, the latest expansion of sanctions is expected to further undermine government finances as its oil export earnings are now effectively locked into the buyers' countries,” the IEA said.

File photo: Iran’s oil export terminal at Kharq Island (Getty Images)


Anonymous said...

Los of revenue is not important, oil is always there and can be sold tomorrow
but if Nuke technologie given up, it comes never back.

anyway today Russia has announced to invest in iran oil industry

Mark Pyruz said...

So what is the actual revenue figure? That's the important figure.

2012 saw revenue at 2008 levels, which exceeded 2005 and 2006 levels. With projections for 2013, they'll likely be somewhere near 2004 and 2005 levels.

So instead of just citing the potential figures of revenue without the economic war being directed at Iran, the actual projected revenue should be forecasted.

Anonymous said...

That is the stupidest thing I have ever read.
Oil is not a limitless resource.Once gone is gone for good.
People like you reflect the type of stupid people that have power in Iran and have given away our resources for nothing to Russia,China,India and god knows where else.

Nader Uskowi said...

Iran's annual oil export revenues in 2011 was estimated at $95 billion. The figure for 2012 is $55 billion. This is a $40 billion drop in annual revenues, or 42 percent drop in one year. The worst could be in 2013: If the four Asian countries (China, Japan, India and South Korea) cut their imports in first six months by 20% to comply with the existing sanctions, as expected, and worst yet, if they comply with the new U.S. sanctions and do not pay for oil imports in cash and instead put the money in local currency in escrow accounts to be used later by Iran to purchase local goods. Short of an agreement with P5+1, 2013 is shaping up to be an extremely difficult year for Iran's oil exports.