Iran Rations Gas - What???

I just ran across this video where Iran requires drivers to have a smart card to buy gas. They say this will cut consumption by 7%. In this report they also mention that the Iranian Government rations gas. How the heck can a MASSIVE oil producing country ration Gas?? Do they have any refineries??? Do they by there gas from US Gas companies???

I could not believe it when I saw it. It must be fake.

www.livevideo.com...

Theres a couple YouTube videos which are both in Arabic so I cant understand what there saying. Maybe there is someone here who can translate.

Part 1


Part 2

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.

Makes sense to me. They obviously want to conserve their national resources as they know they are facing sanctions due to their nuclear program for who knows how long?

So, do we know who they import there Gas from???

Could our massive presence recently of another carrier group pave the way for us to stop shipments to Iran through the Persian Gulf???

The USS Nimitz was a replacement for the USS Eisenhower. The Eisenhower left and is on the way back to her home port. So there are still the same number of Carrier Battle Groups that were in the area before. But I had heard from several sources that Iran was going to run out of oil within 10-15 years.

Maybe I misspoke, but we just recently sent 9 warships into the Persian Gulf supposedly to show force to Iran. I thought this included a Carrier. Anyway, pretty interesting if you believe in the Peak Oil theory and every report I hear is that Iran has the 3rd biggest oil reserves in the world. I think Canada is No. 1 and followed by Saudi Arabia.

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.

Sitting just outside the Gulf would be a better location to try to embargo any shipping though. They're too vulnerable inside the Gulf. There's only one way in or out, and it's not like you can hide something the size of a supertanker. I would think that if they were going to try to blockade they would have sent in more than just 9 ships, and the last thing they'd send in would be a CVN. Destroyers and Cruisers are MUCH better suited for something like that. If you put a CVN into the middle of it, they'd have to spend more time protecting the carrier and less time intercepting ships.

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???

it looks to me as though at least some of Iran's refined imports are delivered via pipeline from neighboring gulf states. This would completely negate any sort of naval blockade.

I was just thinking that maybe with the increase in Oil prices, Iran now has more citizens who can afford cars and they didn't plan far enough ahead to account for that. Why wouldn't Iran build there own Refineries??? I would assume they have the know how considering someone in there Government probably has some ties to the major Oil companies just like they used there Know How from probably Pakistan to build there Nuclear reactors.

I would need to look at a map to see who they might be getting there Gas from. I don't think Russia refines much of there own gas and I would guess most middle eastern countries don't refine there own as well. I think Iraq was the most developed Middle Eastern country before we bombed the heck out of them. I would assume thats where they were getting there refined gas from unless we were exporting it to them through a third party.

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.

www.murdoconline.net...

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.

www.eia.doe.gov...

So from what I've found, the OIL is still going to be there, but their ability to retrieve and process the oil is what's in trouble over the next 10-15 years. And if they lose the ability to process and export oil then the economy is in HUGE trouble.

Its interesting that the article mentioned the Shah of Iran.

The CIA placed the Shah in power after they overthrew the party that was elected by the people. Maybe we did this for a reason and just like Russia which couldn't sustain itself anymore Iran will just implode upon itself. Another great orchestrated take over and strategy by the US Government.

The military build up by the US maybe there to help just in case Iran has a civil war. We won't actually need to attack them as they will take care of that themselves.

The only mention of the shah is that the infrastructure that's breaking down is from that era.

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.

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.

Perhaps they are just trying to keep up.

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.

Military budget of the United States

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Quote Reference (review link)


[edit on 10-6-2007 by UK Wizard]

Russia tried to keep up as well. Look where that got them. They needed the US to bail them out and we lent them Billions, as well as the opening up of Russias markets to US influence.

If we cant bomb you to death we spend you to death. Our power is unchecked, and this is a scary thing.

Originally posted by hoochymama
Wonder why it broke down in the era of the person we placed in power??

what? do you only selectively read things? The shah was in power 20 years ago - machines in daily use wear out so need to be replaced - they have failed to replace them so they are litterally falling apart now 20 years later - like any item 20 years old with minimal maintance

Having a lot of crude oil (which Iran does) isn't the same thing as having a lot of usable petroleum products (which Iran seemingly doesn't). Iran's capacity to refine its oil (as opposed to loading it onto tankers and selling it) could be unable to meet demand, particularly if (as implied) maintenance and upkeep on the refineries has been lacking for a few decades.

Harlequin- I was probably grasping at straws there, but it is relevant.

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.

It didn't break down in that era. It was BUILT in that era, and is still in use today. Which is why it's breaking down now. The point they were making is that they're trying to extract the oil using equipment that was installed almost 30 years ago, and it's getting more and more expensive. If they can't get new equipment then in a few more years they won't have any left to extract oil.