[Iran] Opps...

I've actually been following this before this a bit. Even though they didn't plan it well, it is my understanding (in spite of what the story indicates) that people would have flipped out under any circumstance. Perhaps not as much if everything goes right, but as I understand it, rationing could not have been introduced without some significant 'march in the streets' type of anger.

 

They lack the refining capacity to satisfy local consumption; Iran is in deep dodo on this one and they need to quickly come up with a long-term solution that would reduce their dependence on imports.

And not to pass judgment on whether or not their nuclear program is "peaceful" ( I have my doubts), but they actually do have a pretty compelling argument as to why they need to develop a domestic nuclear energy program.

 

Maybe they should deregulate their oil industry instead of letting their state run companies dictate the supply situation.

 

It would be hard to find private investors in Iran that have the money to build a refinery, and I somehow doubt that outside investors would be falling over themselves to build one in Iran.

 

I'm sure Halliburton would love to help out. Oh wait! They already are!

Halliburton Doing Business With the 'Axis of Evil'

 

not with the signals iran shows and all of the tough talk they throw around. BUt if tensions were to cool and things became more stable (thats a big IF) i think investors would be lining up. BUt you're right, as is, i dont think investors want to build a potential cruise missle target

 

I think this is kind of true everywhere. Nobody's falling over themselves to build any new American refineries, either. It is supposedly a miniscule return for the size of the investment.

 

They are expanding American refineries. (We'll be seeing enormous gains in capacity in the next few years.) They are certainly falling over themselves to build refineries in South America, the Caribbean, and the Far East.

 

I think, however, that at this point there hasn't been a new one to complete construction in the USA in thirty years?

 

i was thinking the same thing

 

That's true. There is a conglomerate that is building a refinery in Arizona, and pre-work for another is being done in the Mountain West (Montana, I think), but the last grass-roots US refinery was built in the late 1970s.

Edit: When Motiva (Shell/Saudi Aramco JV) expands a refinery from 275,000 BPD to 650,000 BPD with only one existing unit necessary for the new units to operate, the expanding/building new is a technicality.

 

They would if there were added incentives for greater access to Iran's petroleum reserves. Maybe some companies would hesitate given the political climate and also Russia and Venezuela's shenanigans to breaking contracts, but the money is flowing and everyone is betting on high energy prices.

The main benefit towards gradual deregulation is less corruption and incompetence from officials who aren't there because of their merits. They are mainly responsible for the degraded infrastructures seen in countries with nationalized oil reserves.