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By: 2nd July 2007 at 14:39 Permalink - Edited 1st January 1970 at 01:00
-Maybe they, for some reason, believe that being the western nations up to their neck already in the Iraq mess that they would think twice before starting a third open war in the region... Or maybe they just want to see the price of the oil barrel surge even higher...
;)
Regards
Hammer
By: 4th July 2007 at 00:12 Permalink - Edited 1st January 1970 at 01:00
-Driving the price of oil higher would be an interesting strategy. Given the sentiment that Ahmadinejad has been ignoring the Iranian economy, which is in need of some sort of reform or assistance, driving the price of oil up would at least provide them with some additional revenue.
By: 4th July 2007 at 11:14 Permalink - Edited 1st January 1970 at 01:00
-Driving the price of oil higher would be an interesting strategy. Given the sentiment that Ahmadinejad has been ignoring the Iranian economy, which is in need of some sort of reform or assistance, driving the price of oil up would at least provide them with some additional revenue.
Not really, Iran, due to a lack of refining infrastructure, is a net importer of petrol. They export oil at$XX and import petrol at $XX + 15%
Higher prices mean more money in the government coffers, but they have to import petrol to meet domestic demand and the public gets very restive when the price of petrol soars, so the government has to subsidise the price of petrol at the bowser.
Higher prices are a two edged sword for the Iranian government.
Unicorn
By: 4th July 2007 at 12:29 Permalink - Edited 1st January 1970 at 01:00
-Not really, Iran, due to a lack of refining infrastructure, is a net importer of petrol. They export oil at$XX and import petrol at $XX + 15%Higher prices mean more money in the government coffers, but they have to import petrol to meet domestic demand and the public gets very restive when the price of petrol soars, so the government has to subsidise the price of petrol at the bowser.
Higher prices are a two edged sword for the Iranian government.
Unicorn
I am not an economist. Actually, I sucked at it during school :D So, I have ask, how on earth did that happen? (The bold part)
By: 4th July 2007 at 12:44 Permalink - Edited 1st January 1970 at 01:00
-refining in iran
Is their any particular reason for iran lacking the necessary capabilities for refining? Its hardly rocket (or nuclear) science is it?
By: 4th July 2007 at 13:50 Permalink - Edited 1st January 1970 at 01:00
-Several.
Much of the Iranian petrol productin infrastructure was located within range of Iraqi bombers during the Iran - Iraq war and were prime targets, with some completely destroyed and many of the remainder badly damaged.
Thus the seeds were sown for the limitations in Iranian domestic petrol refining capacity seen today.
So why haven't they built new ones I hear you say?
The US embargo on financing any construction in Iran (and a similar ban is in place in the UK and much of the EU). Companies are strange like that, they like to be paid, with lots of hard cash up front and regular progress payments.
But Iran can finance it themselves I hear you say?
The main companies who could build the Mullah's their petrol refining facilities are affiliated with the major oil companies, all of who hate the Mullahs with a passion, as Khomeini and his merry gang nationalised the foreign oil company's assets after the Islamic revolution in Iran.
The construction companies are not going to piiss off their main customers and business partners to do deals with a bunch of West-hating clerics.
Surely there are non-Western construction companies who would do the construction you ask?
Indeed, however the demand for refining capability worldwide is such that they have a long list of other, less politically unacceptable customers to build for first, Anyway, very few of them want to really piiss of the US, because the industry is a small one, and what comes around, goes around.
Thus Iran has to buy most of the petrol it uses, which suits the oil companies, the US and the other oil producing countries.
Hope this helps.
Unicorn
By: 5th July 2007 at 12:18 Permalink - Edited 1st January 1970 at 01:00
-Several.Much of the Iranian petrol productin infrastructure was located within range of Iraqi bombers during the Iran - Iraq war and were prime targets, with some completely destroyed and many of the remainder badly damaged.
Thus the seeds were sown for the limitations in Iranian domestic petrol refining capacity seen today.
So why haven't they built new ones I hear you say?
The US embargo on financing any construction in Iran (and a similar ban is in place in the UK and much of the EU). Companies are strange like that, they like to be paid, with lots of hard cash up front and regular progress payments.
But Iran can finance it themselves I hear you say?
The main companies who could build the Mullah's their petrol refining facilities are affiliated with the major oil companies, all of who hate the Mullahs with a passion, as Khomeini and his merry gang nationalised the foreign oil company's assets after the Islamic revolution in Iran.
The construction companies are not going to piiss off their main customers and business partners to do deals with a bunch of West-hating clerics.
Surely there are non-Western construction companies who would do the construction you ask?
Indeed, however the demand for refining capability worldwide is such that they have a long list of other, less politically unacceptable customers to build for first, Anyway, very few of them want to really piiss of the US, because the industry is a small one, and what comes around, goes around.
Thus Iran has to buy most of the petrol it uses, which suits the oil companies, the US and the other oil producing countries.
Hope this helps.
Unicorn
Cheers Unicorn, as informative as always.
Posts: 357
By: tiddles - 22nd June 2007 at 01:27
It seems that our ship boarders had a similar problem to the British that were captured by the Iranians but managed to avoid being captured .I am glad that this story did not break while the British were negotiating the release of their own captives.
www.smh.com.au/news/world/aussies-repel-iranian-gunboat/2007/06/22/1182019309654.html