Middle East Focus: Iranian Smugness on Petroleum Boycotts: What is Behind it? Is it Real?.................

Arabia Deserta

Iranian Smugness on Petroleum Boycotts: What is Behind it? Is it Real?.................

“Iran's oil industry has not been dented by sanctions, Oil Minister Massoud Mirkazemi said on Thursday, dismissing a potential threat to the country's vital gasoline imports as "a joke." Iranian Oil Minister Massoud Mirkazemi attends the 15th International Oil, Gas, Refining & Petrochemical Exhibition in Tehran April 22, 2010. Mirkazemi's comments, at an energy conference in Tehran, come as the United States pushes for a fourth round of United Nations sanctions to pressure Iran to curb a nuclear program the West fears is aimed at building a bomb. "Despite all limitations imposed on Iran's oil and gas industry, we have been able to improve," Mirkazemi told delegates. "Imposing sanctions has not isolated Iran but helped the country to improve its oil industry."……………”

I am not sure how international boycotts helped improve Iran’s petroleum industry. Iran, like other countries, needs international investment and expertise in its vast petroleum and even larger gas fields. The boycotts may force them to be more self-reliant and improvise through learning, but that has its limitations. There is a bit of bragging here by the Iranians. Yet the fact is that Iran has huge untapped petroleum reserves, and it has the second (for now) natural gas reserves after Russia.
They can afford to be smug about gasoline supplies: the Chinese or Indians will never consent to cut off these supplies. Some Persian Gulf states will not either in the absence of a UN mandate. The gasoline cut off will not be part of any UN Security Council resolution that may be voted. There are also reports that they have learned their lesson and are rapidly expanding their local refinery capacity.
Cheers
mhg

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