Iran wants to double their exports in the next five years. Good for them. I would like to double my income in that time frame as well. Unfortunately these are both pipe dreams that will not happen without massive amounts of outside capital.
Iran has the oil. They are pumping four million BPD now, and exporting two of that. But this is a far cry from pre revolution levels. Back then they were putting out more than nine million barrels a day.
When pesky things like a revolution then a decade long war with your neighbor happen, it tends to put a halt on large infrastructure projects though.
And who has the money and knowledge to modernize Iran? Large petroleum companies. Most of which are western owned and run. And they get a little twitchy handing out money to anything called the Islamic Republic Of... at the best of times. And these are not good times. Banks are hesitant to hand out any loans, and a lot of companies are still operating in the red. So when a country run by religious hardliners (who have a history of being subjected to economic sanctions) wants a hundred billion dollars for new infrastructure, there aren't many takers.
Tuesday, July 12, 2016
Wishful Thinking
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