Iran’s Oil Potential Not as High as They Think

Under Islamic Republic rule for 37 years, Iran’s oil infrastructure is detreating. Poor management and corruption have further changed a once healthy oil economy producing 6.3 million barrels per day to a nearly bankrupt economy producing barely 3 million bpd. Production has declined over 200,000 bpd per year over the past decade. Lack of regular maintenance has damaged Iranian reservoirs. Iranian operators have failed to inject gas to maintain reservoir pressure, “which causes 8 to 13 percent oil production to deplete each year.” New technology has been ignored and Iran’s estimate of a rapid production increase once sanctions are dropped is unrealistic.