Iran surpasses Russia in having the largest gas reserves in the world

[Surenas]

Oil major BP cut its global natural gas reserves estimate for the first time in decades, revising Russia's still classified holdings down sharply and putting Iran at the top of the world league table.

In its Statistical Review of World Energy published on Wednesday, BP put global proven gas reserves at 187.3 trillion cubic meters as of the end of 2012, enough for about 56 years of global production at current rates.

BP's annual review of energy statistics, first published in 1951, is considered an industry benchmark. Last year's report put gas reserves at 208.4 trillion cubic meters. The cut of 21 trillion equals roughly seven years of global gas use.

Russia, the world's biggest gas reserves holder for many years, was responsible for the bulk of the reduction, with its reserves estimate downgraded to 32.9 trillion from 44.6 trillion in last year's report.

BP's chief economist, Christof Ruhl, said at a news conference the company decided this year to adjust its estimates for the former Soviet Union, including Russia, where data on reserves is classified.

"Traditionally countries of the former Soviet Union had different criteria than used elsewhere. So we used a conversion factor to convert that from those countries where we don't get direct data," Ruhl said.

"In some countries, reserves are still a state secret, so we have to rely on these data," he added.

BP also cut its estimate of gas reserves in the United States, where the energy industry has been transformed by shale oil and gas, due to lower prices and reduced drilling. U.S. reserves ended 2012 at 8.5 trillion cubic meters, down 0.3 trillion from 2011.

The downgrade left Iran at the top of the table of the world's largest gas reserves holders for the first time in decades, with its broadly unchanged reserves of 33.6 trillion.

Russia remains a much larger gas producer than Iran, which is unable to exploit the full potential of its resources, because U.S. and European trade sanctions over its nuclear program have stalled energy projects.

BP has had a bumpy experience in Russia over the past decade. TNK-BP, its venture with Russian billionaires, generated billions of dollars in dividends for BP but also led to clashes with the Kremlin.

The company sold out of the venture this year to become a major shareholder in state-controlled champion Rosneft (ROSN.MM: Quote, Profile, Research, Stock Buzz). The latter is pursuing an aggressive gas strategy to rival state-controlled Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz), Russia's gas export monopoly and holder of most of its gas reserves.

In its review, BP also steeply downgraded Turkmenistan's reserves to 17.5 trillion from 24.3 trillion and cut its reserves estimates for Kazakhstan, Uzbekistan and Azerbaijan.

OilVoice | BP ranks Iran as top holder of gas reserves

 

[Surenas]

So Qatar climbs to the third place, leaving Turkmenistan on the 4th place.

@Abii

Whats up with this new shale gas hype? I'll guess the cut of 21 trillion gas reserves makes Iran's gas reserves (or of any other country) more valuable since the demand has remained the same (or even increased), while the supply has decreased?

 

[Abii]

So Qatar climbs to the third place, leaving Turkmenistan on the 4th place.

@Abii

Whats up with this new shale gas hype? I'll guess the cut of 21 trillion gas reserves makes Iran's gas reserves (or of any other country) more valuable since the demand has remained the same (or even increased), while the supply has decreased?

We need to start producing NOW.

The industry in North America is exploding. Oil giants are constantly inventing new ways to extract oil and gas and every time they do, their share of the pie gets larger and larger. Unlike OPEC nations, Canada/USA don't inflate their reserves. They'll only give figures for "recoverable deposits." Canada, for example, has the largest oil deposits on the planet, by a vast margin too, but with current tech they can't tap those deposits. So Canada officially has the third largest deposits of oil as a result of that, but with time this will change.

This means that as deposits become recoverable, the supply increase will drastically lower prices. Iranian oil and gas is also easier and cheaper to recover. Saudis spend the least/barrel (2 dollars a barrel), Iran is next and the price to produce a barrel increases drastically till you get to Azerbaijan. Oil sands of Canada are even more expensive. But once all the infrastructure is built, the costs will be quickly recovered and from then on they will be able to set prices just like OPEC is doing.

Iran is losing a major opportunity to produce at a time where demand is still higher than supply. But hey, Palestine, Israel, zionism, the great satan blah blah

Edit: we also don't know what the Russians are up to. The article mentions that BP is only giving estimates based on old figures and that the Russians and former Soviet Republics are still super secretive about their deposits. Russians could be hinding vast deposits to keep prices high.

 

[Scythian]

We have so many other parts that could potentially have huge reserves.

 

[AUSTERLITZ]

We need that gas,eventually we will find way around UN sanctions and such crap hindering developing countries.