Iran - 10 Percent of World's Oil Reserves
Iran is OPEC’s second-largest oil producer and the fourth-largest crude oil exporter in the world.
According to Oil and Gas Journal, Iran has 136 billion barrels of proven oil reserves, or roughly 10 percent of the world's total proven petroleum reserves as of January 1, 2007.
Iran has 40 producing fields, 27 onshore and 13 offshore, with the majority of crude oil reserves located in the southwestern Khuzestan region near the Iraqi border.
...Iran is OPEC’s second-largest producer after Saudi Arabia. In 2006, Iran produced an estimated 4.2 million barrels per day (bbl/d) of total liquids, of which 3.8 million bbl/d was crude oil, equal to 5 percent of global production.Iran’s oil consumption totaled 1.6 million bbl/d in 2006. The Iranian government heavily subsidizes the price of refined oil products which has contributed to increased domestic demand. Iran has limited refinery capacity to produce light fuels, and imports much of its gasoline supply. Iranian domestic oil demand is mainly for gasoline and automotive gasoils, but domestic demand for other oil products are declining due to the substitution of natural gas. However, it is an overall net petroleum products exporter due to large exports of residual fuel oil. Oil export revenues represent the majority of Iran’s total exports earnings, but the country suffers from budget deficits due to a growing population and large government subsidies on gasoline and food products.
In 2005, the International Monetary Fund (IMF) estimated that energy subsidies accounted for 12 percent of Iran’s GDP, the highest rate in the world according to an International Energy Agency (IEA) study.
Iran plans to increase oil production to over 5 million bbl/d by 2010, but it will need foreign help. According to Global Insight, an estimated $25-35 billion is required to meet the government’s 5.8 million bbl/d target by 2015. Investment in Iran’s energy sector has been tempered due to the election of the conservative government of President Mahmoud Ahmadinejad in 2005, the international controversy surrounding the Iranian uranium enrichment and nuclear program, and economic sanctions.
According to the IEA 2007 Medium-Term Oil Market Report, Iran will not be able to increase its net expansion capacity through 2012.
Cheney on the importance of Hormuz
Of oil used, the USA gets 22% of their total consumption from the Persian Gulf countries, Western Europe 30%, and Japan 76%.
All this is 20% of the world's oil, and 40% of traded oil.
If access to the Gulf were denied, assuming pipelines were to flow at maximum capacity, the world would lose 17% of its oil supply. Closure of the Strait of Hormuz would require use of longer overland routes (if available) at increased transportation cost
(http://spyingbadthings.blogspot.com/2008/01/oil-importance-of-strait-of-hormuz.html)