Further growth in Iranian production volumes will be deterred by slow investment in Iran’s upstream oil and gas industry. Iran’s claim that it can ramp up production to 500,000 barrels per day by second quarter 2015 is quite credible, an analyst told attendees at a conference on U.S.-Iran relations held at Rice University in Houston last week. But further growth in Iranian production volumes will be deterred by slow investment in Iran’s upstream oil and gas industry. Iran, which has immense hydrocarbon reserves with low production costs, has never come close to its production potential. But a number of hurdles remain for Iranian production. Greg Priddy, director of global energy & natural resources at Eurasia Group, said that the revisal of Iran’s petroleum contract terms that are less favorable to the oil and gas industry makes it likely that interest in an Iranian bidding round will be disappointing. Initially, […]