Would Iran Quit OPEC

Another interesting story from RigZone:

A top Iranian lawmaker said Tuesday that Iran should reevaluate its continued membership in the Organization of Petroleum Exporting Countries, in view of the organization's continuing demands for higher production that often overlook the long-term benefits of oil reservoirs, the official Islamic Republic News Agency reported.

The lawmaker in question is Kamal Daneshyar, the head of Iran's Energy Committee. In other words, when he talks, Iran listens.

He said Iran should pay attention to the welfare of the oil wells even if that would mean reduced production. Daneshyar, who has considerable influence on decisions in Iran's oil industry, said last week that the country's oil production has been steadily dropping over a period of decades.

The country's oil production currently stands at around 4 million barrels a day and will most likely drop down to around 2 million b/d if oil wells aren't protected.

You know what this is probably leading up to, don't you? Iran already can't meet its production quotas. I think it's likely Iran will A) cut production even more B) blame Western infidels for being forced to do so which C) gives it cover to cut the social programs that the oil production has been paying for.

After all, who has money to buy cement, water treatment plants, and other basics when you're busy trying to become a nuclear power.

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