The reduction of Iran's oil loading to 255,000 barrels per day is a sign of profound changes in the oil industry of this country. While Mohsen Paknejad, the Minister of Oil of the Islamic Republic, emphasized that oil exports were not halted "even for one hour" during the 40-day war, independent data show different realities.
Significant Reduction in Oil Production and Loading
Estimates from Kepler Energy Information Company in early September indicate that Iran's oil loading has decreased from about 1.83 million barrels per day in March to around 255,000 barrels in August. Additionally, Iran's crude oil production has dropped from about 3.24 million barrels per day to 1.755 million barrels. This situation has led not only to a decrease in exports but also to an increase in oil inventories at terminals and refineries.
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Storage and Production Challenges
The reduction in oil exports means that the produced oil is first stored in onshore tanks, refineries, and tankers. However, storage capacity is limited, and as tanks fill up, the pressure of the crisis is transferred to production facilities and ultimately to the wells. In this situation, the National Iranian Oil Company is forced to reduce the production of some wells or completely take them offline.
Many of Iran's oil fields are old, and wells that are stopped for a long time may no longer flow naturally. Restarting these wells may require repairs and additional costs. Meanwhile, the situation of shared fields also requires more thorough examination and evaluation.
Consequences of Reduced Production and Gas Injection
A significant portion of Iran's old fields relies on gas injection to maintain reservoir pressure and maximize oil recovery. However, currently, the reduction in gas production due to export and storage limitations can put more pressure on oil fields. This issue adds more complexities to the oil export crisis and may have serious consequences for Iran's oil industry.
Ultimately, the main issue is how many wells return without additional operations and how long it will take to revive the rest. In this regard, the costs and operational needs in oil production must be carefully examined.
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