Rezaei: Iran's Oil Revenues Decreased by $100 Billion in the Last Three Years

The Secretary of the Expediency Discernment Council stated that recent sanctions have reduced Iran's crude oil exports by 50% and the country's oil revenues by "$100 billion." He also mentioned that if the decline in oil prices continues for another three years, another $100 billion will be lost from Iran's oil revenues. According to IRNA news agency, Mohsen Rezaei emphasized on Sunday, January 21, that "in recent years we have faced two types of sanctions, the first being related to the quantity of Iran's oil, which has decreased from over two million barrels a day to one million barrels a day." He added, "As a result, over one billion barrels of Iran's crude oil remain in the wells and have not been exported." Before the international sanctions due to its nuclear activities, Iran exported two and a half million barrels of oil daily and produced about three million and 700 thousand barrels of oil. According to the current budget law, it is projected that Iran will export 1.3 million barrels of crude oil and gas condensates daily. The U.S. Energy Information Administration reported on September 9 that due to the natural decline in production from aging oil fields, sanctions, and slow project advancements, it will take years for Iran's oil production to recover. Mr. Rezaei further stated, "The second type of sanctions relates to price sanctions, which have significantly reduced prices in recent months." He noted, "The U.S. implemented the first sanctions with the help of the Security Council and the second sanctions with the cooperation of Saudi Arabia and several other Gulf producers." The Secretary of the Expediency Discernment Council emphasized, "If the price decline continues for another three years, another $100 billion will be lost from Iran's oil revenues." Oil prices have now fallen below $50 per barrel, reaching their lowest level in six years, and according to OPEC statistics, the price of this organization's oil basket is currently around $45. Iran and Venezuela emphasize the need for OPEC production cuts, while Saudi Arabia argues that cuts by OPEC members will allow other oil producers to quickly fill the gap in global markets. Mr. Rezaei also mentioned two "scenarios" for oil prices in the 2015 budget, set at $72 and $50. In the 2014 budget bill, the price of oil was projected at $100 per barrel, but due to the unprecedented drop in oil prices in recent months, the Iranian government was forced to reduce this figure to $72 for the following year. The Secretary of the Expediency Discernment Council also stated, "If Chinese companies cooperate well, there is a possibility for joint investment between Iran and China in Iraq, utilizing Iran's position in Iraq." Mr. Rezaei added, "Although Iran's money is blocked in many countries, none of them allow Iran to use this money, while the Chinese provide it as financing to Iran." Following the onset of Western sanctions against Iran's nuclear program, Iran's oil sale proceeds have been blocked in countries like China, India, Japan, and South Korea, and Iran still does not have permission to use most of this money. In November 2013, Mohammad Baqer Nobakht, the spokesman for Hassan Rouhani's government, stated that China's oil debt to Iran was 22 billion euros (about $30 billion). Yahya Al-Ishaq, head of the Tehran Chamber of Commerce, said on December 26 that Iran has "about $100 billion of frozen currency" in countries like China, India, and Japan, but "cannot quickly use it."