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| Image source: bidnessetc.com |
Although the lifting of sanctions on the Islamic Republic of Iran has yet to become fully manifest until later in the year, the country’s thawing relations with the U.S. are expected to have a profound impact on the petroleum industry as Iranian crude makes its way to the world's market. While the obvious projections have been put forward, the oil industry is rarely simple enough to be summed up in a global manner.
There are specific instances where the arrival of Iranian crude to the market is welcome. Likewise, the expected negative setbacks may hit some states more heavily than others.
On one hand, Russia can stand to lose considerably in this scenario. The arrival of Iranian crude to the European Union, expected to be 25-35 billion cubic meters, could jeopardize Russia's exports to Europe. The implications are also staggering, as the Russian oil industry is based particularly on high cost exploration in the Arctic Ocean.
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| Image source: euobserver.com |
Growing economies like South Africa, on the other hand, are one of the clearest winners in the lifting of sanctions. As the second-largest economy in the continent, South Africa has a growing demand for energy. Moreover, South Africa's refineries specialize in processing much of the crude produced by Iran's oil fields, making the country a prime customer for Iranian oil. Other nations in the region, including Angola, are also expecting to benefit from the lifted restrictions.
Brian Alfaro heads Primera Energy, LLC, which has invested in several oil shale exploration ventures in Texas using state-of-the-art technology. Visit this website for more on the company and its projects.
