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The Iranian government has decided to ration gasoline in OPEC's second biggest producer in the Iranian year that starts in March 2007, state-owned Iran newspaper reported Wednesday...
After originally slashing the budget for gasoline imports to $2.5 billion for the Iranian year that runs to March 2007, parliament agreed in November to provide an additional $2.5 billion when the initial funds ran out.
Iran, which lacks refining capacity, has to import about 40 percent of the 70 million litres of gasoline it burns daily...
Many Iranian officials say Iran's dependence on imported fuel threatens national security, particularly when the country faces United Nations sanctions over its disputed nuclear program.
Source.
Iran is flush with huge oil reserves and cash, but a refinery shortage leaves it heavily dependent on imported gasoline and diesel to keeps its cars and trucks rolling....
Its oil reserves are estimated at second only to Saudi Arabia's, and Iran is OPEC's fourth-biggest producer of crude...
Iran imports more than 40 percent of its gasoline and diesel needs. It comes mostly from the Middle East but also from as far away as Venezuela...
Source.
Originally posted by hoochymama
Could our massive presence recently of another carrier group pave the way for us to stop shipments to Iran through the Persian Gulf???
Iran's oil exports are plummeting at 10pc a year on lack of investment and could be exhausted within a decade, depriving the world economy of its second-biggest source of crude supplies.
A report by the US National Academy of Sciences said rickety infrastructure dating back to the era of the Shah had crippled output, while local fuel use was rising at 6pc a year.
"Their domestic demand is growing at the highest rate of any country in the world," said Prof Roger Stern, an Iran expert at Johns Hopkins University, Baltimore.
"They need to invest $2.5bn (£1.28bn) a year just to stand still and they're not doing it because it's politically easier to spend the money on social welfare and the army than to wait four to six years for a return on investment," he said.
"They've been running down the industry like this for 20 years."
Prof Stern said Teheran faces impending disaster since it relies on oil revenues for 70pc of its budget.
In 2005, Iran imported 150,000 bbl/d out of total consumption of 400,000 bbl/d. For 2006, FACTS estimates Iran will consume 462,000 bbl/d of gasoline and import 188,000 bbl/d, or roughly 41 percent of total consumption. According to Petroleum Argus, around 60 percent of this comes from European oil trader, Vitol, with another 15 percent coming from India’s 600,000-bbl/d Reliance refinery However, although Iran imports large amounts of gasoline, it is an overall net petroleum products exporter due to its large gross exports of residual fuel oil.
Originally posted by hoochymama
So, Iran is sitting on all this oil and with the amount they can extract and sell on the market they are instead spending it a military build up and nuclear research.
Budget for 2007
The federally budgeted (see below) military expenditure of the United States Department of Defense for fiscal year 2007 is:
Total Funding $439.3 Billion +6.9%
Operations and maintenance $152.2 Bil. +6.6%
Military Personnel $110.8 Bil. +3.7%
Procurement $84.2 Bil. +10.5%
Research, Development, Testing & Evaluation $73.2 Bil. +3.1%
Military Construction $12.6 Bil. +57.5%
Family Housing $4.1 Bil. +2.5%
Working Capital Funds $2.4 Bil. +9.1%
Further, the Department of Energy will spend an additional $23.4 Bil. during FY'07 for the development, maintenance and production of nuclear warheads.
Originally posted by hoochymama
Wonder why it broke down in the era of the person we placed in power??
Originally posted by hoochymama
Wonder why it broke down in the era of the person we placed in power?? I was relating this to the current crises Iran is having and they would need a massive influx of cash to get them up to speed. Who usually has the cash to do this?? The US. So, Iran is sitting on all this oil and with the amount they can extract and sell on the market they are instead spending it a military build up and nuclear research.