Kharg Island, Iran and its energy sector
Oil has jumped on the escalating tensions with Iran, including a post created by AI for U.S. president Donald Trump, who claimed to have seen?the Kharg Island hub of oil being destroyed', a claim that was deemed "laughable" by an Iranian official.
A U.S. official stated on Monday that there was no evidence to support such an attack.
Here are some key facts about Iran's energy industry.
KHARG ISLAND
Iran, the third-largest oil producer in the Organization of Petroleum Exporting Countries (OPEC), exported 90% of its crude through the island of?Kharg? before the war. However, since the U.S. began a blockade of Iranian exports in mid-April, the flow of crude from Kharg has been disrupted.
Kharg is located 16 miles (26km) north of Iran, at the northern end of Gulf. It's also about 483 miles (523 km) west of the Strait of Hormuz.
Hamid Bovard said that Trump's tweets are laughable, and the conditions at Kharg are calm.
According to Nournews, the website affiliated with Iran's top national security body, oil operations have not stopped, and workers are busy repairing damage and modernising equipment, he said.
The?U.S. The?U.S.
Trump stated on June 11, that he would like to take over Kharg Island. However, a U.S. military intervention there is off the table at this time, just days before Washington and Tehran signed an interim deal aimed at ending the "war" on June 17,
An attack by the U.S. on Kharg will put further pressure on Iran’s oil industry, and wider economy. Both are already suffering from the U.S. Naval Blockade. The U.S. blocked Iranian ports because Iran effectively closed the Strait of Hormuz - a waterway that transported one fifth of the world's supply of oil before the war.
The Iranian authorities have warned repeatedly that an attack on Kharg Island could lead to a regional escalation.
INFRASTRUCTURE AND OIL PRODUCTION
The Iranian fields and facilities can be found in the southwest provinces of Khuzestan and Bushehr, which are responsible for the production of oil and gas from South Pars offshore gas field.
According to secondary sources cited in OPEC, Iran produced 2.48 million barrels of crude oil per day in July. This is similar to the production of 2.45 millions bpd that was achieved in June. This is roughly equal to 2.5% of the global oil production.
The consultancy FGE said that the country's refineries are capable of producing 2.6 million barrels per day.
Kpler reported that in August, Iran only loaded 251,000 barrels per day of oil. The oil stock at Kharg Island dropped by 550,000 barrels, to 19.45 millions barrels.
According to Kpler's estimates, fuel exports (including LPG) will average 820,000 bpd by 2025. This is slightly lower than the levels of 2024.
Who buys Iran's oil?
The main buyers are Chinese private refiners. U.S. Treasury imposed sanctions against some Chinese refiners who purchased Iranian oil.
China claims it doesn't recognise unilateral sanctions against trade partners, but its purchases have decreased.
Iran has been evading sanctions by using various tactics, including ship-to -ship transfers, hiding the source of its oil and using tankers whose locations are hidden from satellites.
Tehran's earlier demands, which have since failed, included lifting of sanctions against Iran and recognition of Iran's control of the Strait of Hormuz.
The World's Largest Gas Reserves
Iran produces natural gases from the offshore South Pars field. This gas field makes up about a third of world's largest natural gas reservoir.
Iran's South Pars oil field has been hit by strikes. In May, Iran resumed gas production at three platforms offshore in the South Pars field.
Iran shares its reservoir with Qatar, a major exporter. Qatar calls their field North?Dome.
Due to technical and sanctions constraints, most of the gas produced by Iran from South Pars is used for domestic consumption.
According to the Gas Exporting Countries Forum, Iran's total gas production in 2024 will be 276 billion cubic metres, of which 94% will be consumed by Iran.
Israel attacked South Pars both this year and in the past, causing fires and some disruptions to operations.
It is estimated that the reservoir holds 1,800 trillion cubic foot of gas usable, enough to meet all world needs for 13 year.
(source: Reuters)
