...With Natural Gas Byproduct, Iran Sidesteps Sanctions By CLIFFORD KRAUSSAUG. 12, 2014 Iran is finding a way around Western sanctions to export increasing amounts of an ultralight oil to China and other Asian markets, expanding the value of its trade by potentially billions of dollars a year. The exports come during a slight thaw in Iran’s relations with the West as negotiations over its nuclear program continue, and energy experts say it is counting on the United States and Europe to tolerate an increasing export stream. According to Iranian customs data, the country in recent months has exported 525,000 barrels a day of the ultralight oil, known as condensates, over two times more than it did a year ago. In the last three months, the sales have generated as much as $1.5 billion in extra trade — a rate of about $6 billion a year — based on Iranian trade figures and market prices, analysts said. The result has been an overall increase in petroleum shipments to China and other Asian markets without violating the letter of the sanctions. American officials have aimed to keep Iranian oil exports at around one million barrels a day, but when combined with condensate sales, they averaged 1.4 million barrels a day between January and May, according to the Energy Department. Administration officials said that they were aware of the increased sales and had periodically discussed them with Iran’s trading partners, suggesting that such purchases were not in the spirit of sanctions agreements...
Words: 1196 - Pages: 5
...IRAN OIL AND SANCTIONS MGT5A6 Issues in contemporary management Contents Introduction…………………………………………………………………………………………………..3 About Iran oil…………………………………………………………………………………………………3 About Iran Sanctions and problems…………………………………………………………….3-4 Group recommendation………………………………………………………………………………4-5 Bibliography………………………………………………………………………………………………….6 Introduction: This report focuses on Iran national oil company and sanction regarding the atomic energy in Iran and how people in Iran dealing with this problem. About Iran oil: According to OPEC Iran comes second in the world with highest level’s of oil reserves estimated at 150 billion barrels and this is ten percent of total proven reserves in petroleum. Iran is the fourth largest producer of oil in the world and second largest after Saudi Arabia in Middle East but this was all before the sanction. Sanction against Iran and problems: Sanctions against Iran are commonly against nuclear and certain military exports to Iran and this have been affecting all Iranian people around the world. Sanction started five years ago and day by day they make it harder for Iranian people and USA and all the European countries said many times in news that we don’t have anything against Iranian people, we just want to make your government to stop nuclear progress but this didn’t effect Iranian governments but since 2011 the crises start hitting Iranian much more then before, even the price of the product’s and services increased...
Words: 1245 - Pages: 5
...RETURNS: THE IRANIAN CASE by ABSTRACT The purpose of this study is to examine the effect of oil and gas prices on transportation and storage sector’s equity returns in Iran. To this end, we analyze Iranian transportation and storage sector index for the period from the first week of January 2005 until the third week of March 2010. Based on the multifactor model and using time-series regression, our findings indicate that oil price is not an important determinant of returns in transportation and storage sector. Similarly, the findings suggest that gas price movements do not seem to play a role for transportation and storage sector. However, consistent with the capital asset pricing model (CAPM), the market portfolio is a significant pricing factor in the sector’s stock returns. In addition, the estimated regression indicates that the exchange rate is not priced for this sector’s stock returns. The results of this study help domestic and potential foreign investors to understand the effect of energy price changes on transportation and storage sector stock returns in order to manage their portfolio effectively. KEYWORDS Energy prices, Transportation and storage sector, Equity returns, Iran INTRODUCTION Recent years have witnessed massive price movements of the energy markets. The price of energy has a large impact on economy of the world (Huang et al., 1996; Nandha & Brooks, 2009; Chen et al., 1986; Nandha & Faff, 2008). The EIA report (2007) indicates that higher oil prices affect...
Words: 4747 - Pages: 19
...Iran and the Western World Sanctions on Nuclear Enrichment and Weapons development. The challenges between Iran and Western World started after the Iranian Revolution of 1979, and the United States imposed sanctions against Iran and expanded them in 1995 to include firms dealing with the Iranian government. In 2006, the UN Security Council passed Resolution 1696 and imposed sanctions after Iran refused to suspend its uranium enrichment program. U.S. sanctions initially targeted investments in oil, gas and petrochemicals, exports of refined petroleum products, and business dealings with the Iranian revolutionary guard corps. UN sanctions against Iran The UN Security Council passed a number of resolutions imposing sanctions on Iran, following the report by the International Atomic Energy Agency Board of Governors regarding Iran's non-compliance with its safeguards agreement. These are the sanctions below that were passed on Iran United Nations Security Council Resolution 1696 – was passed on 31 July 2006. Demanded that Iran suspend all enrichment-related and reprocessing activities and threatened sanctions. United Nations Security Council Resolution 1737 – was passed on 23 December 2006 in response to the proliferation risks presented by the Iranian nuclear program and, in this context, by Iran's continuing failure to meet the requirements of the International Atomic Energy Agency Board of Governors and to comply with the provisions of Security Council resolution 1696 in...
Words: 2162 - Pages: 9
...Gas Worlwide Environmet Economic Environmet. Macroeconomics. Dña. Susana Garcia Andión Dña. Iria Regueiro Espiñeira D. Ernesto Rodríguez Cuervo D. Cesar González Soto D. Damián Rodriguez Estévez 2012 GAS WORLWIDE ENVIRONMET 10/02/2012 INDEX. 1. Introduction. 2 2. Major world producers, exporters, importers and reserve holders. 3 * Producing Countries. * Exporting Countries. * Proved Reserves. * Importing Countries. 3. Leading players at “gas game”. 6 * Russia. * Qatar. * Saudi Arabia. * USA. * Turkmenistan. * China. * Canada. * Spain. 4. Largest companies. 8 * National Iranian Oil. * Saudi Arabian Oil. * Qatar General Petroleum Corporation. * Iraq National Oil Company. * Petroleos de Venezuela SA. * Gazprom Group. 5. Main pipelines. 11 6. Conclusion. 12 BIBLIOGRAPHY. 14 1. INTRODUCTION. Petrol is currently the “star” resource when analyzing world energy resources according to their relative weigh and its price’s impact on world economy. On the other hand, renewable energies tend to focus attention when innovation or sustainability is the main analysis factor. Maybe because these are most common approaches, we have consider that focusing on gas might be a pretty original one, once it was...
Words: 3584 - Pages: 15
...21 and ends on March 20 of other year. TYPES OF TAX 1 Income tax 2 Islamic taxes 3 Real estate taxes 4 Capital gain tax 5 Indirect taxes ECONOMICAL FACTORS: Inflation rate for IRAN is 13.50% for year 2010 while in 2009 it was 25.60%. It is transition economy with large public sector and estimated 50% of economy centrally planned. A unique feature is the large size of religious foundations whose combined budget makes up more than 30% of central government. Unemployment rate is 11.80%. According to official estimates some 3.5 million working age Iranians are currently unemployed. The jobless rate is high among women and youth of Islamic republic. GDP- real growth rate is 1.50%. GDP per capita is $ 4732. It is 18th largest economy purchasing power parity. Iran's non-oil exports, excluding gas condensates to the Gulf Cooperation Council [GCC] were valued at $2.281 billion during the first 9 months of the current Iranian calendar year (March-December, 2010), showing 25 percent over the same period last year. The...
Words: 1487 - Pages: 6
...Islamic Republic Iran is the twenty-eight largest in the world by GDP (nominal) and the nineteenth largest economy in the world by Purchasing Power Parity (PPP). Iran is the world’s second largest proven oil and gas reserves after Saudi Arabia and Russia. It is the first exporter of the Organization of Petroleum Exporting Countries (OPEC). Oil and gas aside, Iran is rich in other resources and has a important agricultural sector with the culture of cereals (wheat, corn, barley, rice), fruits (dates, figs, pomegranates, grapes, melons and watermelons) and vegetables, cotton, pistachios, olives, spices (saffron), tobacco and tea. Thanks to its location, Iran has an easy access to markets of neighboring countries Furthermore, Iran has one of the highest urban growth rates in the world. From 1950 to 2002, the urban proportion of the population increased from 27% to 60%. TSE (Tehran Stock Exchange) has been one of the world's best performing stock exchanges in recent years. The Foreign Investment Promotion and Protection Act (FIPPA) gives some protection to foreign investors and relatively good terms for the repatriation of profits. We can also underlight that Iran has a young population, two thirds of its population is under the age of 25 year old. The Iranian...
Words: 730 - Pages: 3
...In 1976 the Democratic Party chose Jimmy Carter as its nominee for president, and the American people elected him to that office over the incumbent president, Gerald Ford, bringing to a climax the most meteoric rise in modern U. S. politics. In choosing Jimmy Carter, the voters gained a president about whom they knew little and one who prided himself on being relatively unknown outside his home state of Georgia. He had never been a national candidate and had no significant experience on the national scene or any close ties to Washington. Jimmy Carter decided to run for president after his second term as governor of Georgia. (Goldfield, 2007, p.869) He sensed that the mood of the country was anti-Washington and that people were interested in a candidate who had not been associated with the Watergate scandal or with the Vietnam War. His campaign was built on moderate positions on most major issues, and he set a moral tone for the election by promising never to lie to the American people and to institute a government that was decent, compassionate, and responsible. In foreign affairs, Carter wanted to establish human rights as a tenet of American policy. (Jimmy Carter, n.d., ¶5) His frequent criticism of nations that violated basic human rights and his pleas in behalf of Soviet dissidents angered the Soviet government, which viewed the statements as intervention in its internal affairs. Despite these differences, Carter and Soviet President Leonid Brezhnev signed the...
Words: 1078 - Pages: 5
...Sea 2. Iran is the eighteenth largest country in the world 3. The economy of Iran is the twenty-fifth largest in the world by GDP (nominal) and the eighteenth largest economy in the world by purchasing power parity (PPP) 4. world’s second largest proven oil reserves, after Saudi Arabia, 5. world’s second largest proven gas reserves after Russia 6. It is OPEC's (Organization of the Petroleum Exporting Countries) 2nd largest oil exporter and is an energy superpower. 7. Subsidy reform has cut domestic consumption of oil and gas and provides more for export 8. Oil and gas aside, Iran is rich in other resources and has a strong agricultural sector 9. Easy Access to markets of neighboring countries 10. Iran has one of the highest urban growth rates in the world. From 1950 to 2002, the urban proportion of the population increased from 27% to 60% 11. TSE (Tehran Stock Exchange) has been one of the world's best performing stock exchanges in recent years. 12. The Foreign Investment Promotion and Protection Act (FIPPA) gives some protection to foreign investors and relatively good terms for the repatriation of profits 13. Although stifled in the years since the revolution, Iranians are known for their entrepreneurial skills, which is potentially a strong pull for foreign investors. 14. excellent reverse engineering capabilities and technical innovation 15. A large army including elite units 16. two thirds of Iran's population under...
Words: 1179 - Pages: 5
...Sri Lankan Oil Market Introduction Crude oil was naturally occurred a period of millions years ago. It has found in certain rock formations in the earth. It is not appearing all the area in the earth. Only few of countries are drilling crude oil in the world. This substance is a dark, sticky liquid known scientifically known as a hydrocarbon. That is a compound of carbon and hydrogen, with or without metallic elements such as oxygen and sulfur. Combination of these elements make the oil burned in case of excitation. Process does not stop after absorption of crude oil. There are lots of steps such as extraction the crude oil into category such as petrol and etc. Let’s look at measurement of crude oil. Not like other substances crude oil is measured in barrels. In the 19 century, it was stored in the wooden barrel in developed countries. In present, one barrel equals 42 US gallons, or 159 liters. Also, it is measured in ton scale. We clearly know that number of barrels contained in each ton varies depending on the type and density of each crude (average-7.33 barrels per each ton). Extraction procedure of petrol Petroleum is extracted crude oil which was absorbed from oil wells found in oil field. There some technologies to extract the petroleum but few of them are improved technologies such as fisher-Tropsch process. With higher demand for hydrocarbons miscellaneous method are used in petroleum exploration and development to optimize the recovery of oil and gas known as enhanced...
Words: 3070 - Pages: 13
...with Iran Jeremy Bondy American Military University DEFM600 B001 Win 12 Dr. Oliver Hedgepeth February 25, 2012 Table of Contents Introduction 3 History 4 Assumptions 5 Secrecy of Iran's Nuclear Program 6 Evidence of Nuclear Weapon Development 6 Refusing IAEA Inspections 7 Closing the Straits of Hormuz 8 Iran Aid to Syrian Government 9 Iran's Supporting of Militant Groups 10 Replacing the Iranian Regime 10 Variables Used to Define a Model 11 Conclusion 12 References 13 Introduction As time goes on Iran is becoming an increasing area of concern and threat to the United States and its allies. Iran has been working for some time at trying to establish itself as a dominant power, especially within the Middle East. This quest for recognition has caused rising national security concerns within the United States and some of its allied countries. Some of the most recent concerns include; Iran's nuclear program, threats of closing of the Straits of Hormuz, the oil sanctions, and Iran's threats towards other oil producing Arab nations. Iran has also been working at strengthening its ties with Syria, the Hezbollah in Lebanon, Shiite groups in Iraq, and ties to groups in Palestine and Afghanistan. According to Mansour (2008), Iran has many tools in place that have a major impact on their surrounding countries and on the United States. Iran is gaining allot of ground on becoming a dominating force within its region and is...
Words: 3169 - Pages: 13
...Markets KCB ID: 12449. Course Instructor: J.Naidoo Student ID: 12449 INTRODUCTION: That assignment consists of two parts. In first part, we will discuss the macro environmental factors that will affect BP (British Petroleum), when they have to consider their future strategic decision in order to regain their market position in the USA. In second part, we will suggest a marketing plan for BP to consider to recover from this ‘‘marketing disaster’’. The disaster is the Gulf of Mexico oil platform (which is the Deepwater Horizon) explosion occurred, millions barrels of oil have been leaked in the region for a few months. That infiltration is the largest environmental disaster in U.S. history. The goal of macro environment analyse is to see that marketing opportunity and threats were given by changes and trends in macro environment. Focusing on them for marketers helps to take decision and modifies their strategies and plans. The marketers wish to know which elements of macro environment affect their planning and how they influence future strategies. We will see the strong point and factors of macro environment which are the social and cultural environment, political and legal environment, economic environment, technology environment and demographic...
Words: 3060 - Pages: 13
... A rise in price tends, sooner or later, to decrease demand and to increase supply. conversely a fall in price tends, sooner or later, to increase demand and to decrease supply. III. Price tends to the level at which demand is equal to supply. So Sir Hubert states that these three laws are the cornerstone of economic theory. (Henderson ,1922). I think that gas prices are a very good example of this concept. Whenever you see any type of conflict happening in the Middle East where the large oil fields are, the price of oil will rise. An example of this would be when the antigovernment protest began in Lybia, the price oil surged more than 6%. (Rooney, 2011). So this shows that if the supply is short or maybe even perceived to be in short supply, then the demand rises and so does the price of the item. You might have noticed that I said perceived. Even though the item might not be in short supply, if buyers think that the item may be in short supply will cause the price of the item to go up as well. That’s why you see some people being investigated about speculation on the oil price fluctuation. The next topic I would like to discuss is Consumer Surplus. The definition according to our book is “consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it”. (Mankiw, 2007) So we have something for sell, but...
Words: 822 - Pages: 4
...Ethical Challenges 1. You are an executive for a U.S. oil firm interested in forming a partnership with an Iranian oil producer. This will be a challenge because of the poor relations between the United States and Iran over the years. Since the early 1980s the United States has drawn fire from the business community for imposing economic sanctions (similar to an embargo) against Iran for primarily political reasons. Those sanctions disallow international trade and investment between U.S. and Iranian businesspeople. Business leaders in the United States would like the sanctions removed so they can be included in lucrative Iranian oil and gas deals in which firms from other countries are engaging. Other sanction opponents wonder if a policy of offering “all stick and no carrot” is undermining social and political change in Iran because the offending regime goes largely unpunished while ordinary citizens suffer. What arguments would you present to the U.S. government for removing sanctions on Iran? Do you think that one country, acting alone, can bring about reforms through the use of economic sanctions or embargoes? 2. You are the president of a sugar company based in southern Florida. Your firm is struggling lately to meet demand because of poor harvests in the Caribbean Islands, where your firm sources much of its raw product. Because of the Helms–Burton Act and the U.S. embargo on Cuba, your firm is not allowed to trade with Cuba. If the embargo were dropped, your firm would...
Words: 429 - Pages: 2
...Oil prices to average $33/barrel on low demand: Moody's Business Standard, 22 January 2016 Increased supply of oil from Iran and concerns over demand growth in countries like India and China will drive oil prices yet lower in 2016 as output vastly exceeds consumption, Moody's Investors Service has said. The rating agency estimates crude oil prices to average $33 per barrel in 2016, $10 lower than its previous estimate and expects rates rising by $5 a barrel each in 2017 and 2018. "We are reducing our oil price estimates in light of continuing oversupply in the global oil markets, with Iran poised to add more than 500,000 barrels per day (bpd) to global supply while demand growth remains tepid," Moody's said in a statement. Stating that it has adjusted its view downward for the likely range of prices, the rating agency said it saw "a substantial risk that prices may recover much more slowly over the medium term than many companies expect, as well as a risk that prices might fall further." "Even under a scenario with a modest recovery from current prices, producing companies and the drillers and service companies that support them will experience rising financial stress with much lower cash flows," it said. Oil cartel OPEC and many non-OPEC oil producers continue to produce without restraint as they battle for market share, and the addition of Iranian oil to the market in 2016 will offset or exceed a roughly 500,000 bpd decline in the US production, it added. ...
Words: 513 - Pages: 3
