The oil and gas markets of the world have recently been buoyed by the news of negotiations taking place to ease the economic and cultural embargo placed upon Iran by the US and her global partners. One of the main reasons for seeking out an end to the frosty relationship between the West and the Islamic state is the fact that Iran was named in 2011 as having the largest proven gas reserves in the world. Because the vast majority of these gas reserves have remained untouched the level of gas Iran is able to produce is said to be akin to an infinite supply being released onto the world markets.
Major problems face Iran in its bid to rival Russia as the major supplier of gas to the world is the financial investment required to build an infrastructure capable of supplying the gas needs of the world. Iran’s International Affairs and Oil Ministers have recently been negotiating with governments and large oil and LPG companies in Paris, France to find a source of funding and investment that will meet their needs. The politicians from Iran stated their happiness at any proposed gas industry investments that would total $100 billion in new technologies.
Iran has recently become the major source of interest for most oil and gas producers who are seeking ways of rivaling the shale gas production of the US, natural gas production in Russia and Saudi Arabia’s vast oil reserves. Iran currently produces 800 million cubic meters of natural gas each day but hopes to increase this to more than 1.2 billion over the next five years as the foreign investment opportunities are taken. Around the world energy experts in gas consumption are hoping a deal can be put into place by the June 30, 2015 deadline that will allow natural gas production to begin in Iran and maintain a competitive natural gas price throughout the 21st century.