Iran is set to drill another 160 wells by March 2009. That would translate into multi-billion dollar investments, heavy mobilization of equipment and man power and potential growth for the economy. Although Total has pulled out of that race, rest assured that many National Oil Cos will participate in this endeavor.
President of Iran has also proposed the use of a single currency to help combat the ailing US dollar affect on oil price. This is both political and economic. This was also echoed by our former Prime Minister on the use of Euro for the industry.
With Iran set to be the third biggest gas producer in the world by 2020 with an estimated production of 620 billion cubic yards, no wonder it is proposing another setup similar to OPEC but for gas producers. How will this impact the politics of gas? We have seen how former USSR countries were held hostage due to the dependence of Russian gas.
Meanwhile, the US is opening up Alaska and the Arctic National Wildlife Reserve to more development drilling activities. This is totally counter productive as the reserves will not satisfy the growing consumption of gas-guzzling SUVs and others. The US alone consumes 25 million barrels a day and produces only 1/3 of it. Senator Obama is ready to set the tone for a new energy policy if installed as the new POTUS such as the use of E85, lowering carbon emission by investing in R&D and manufacturing of fuel-efficient cars (therefore creating a sustainable competition against the Japanese auto onslaught).