The world can live without Iranian oil
The world can live without Iranian oil
When President Trump ended the United States' participation in Iran's nuclear agreement, he promised harsh sanctions against the Iranian regime. On Monday, our government will deliver exactly that, imposing sanctions on more than 700 people and entities in Iran's energy, transportation and finance sectors.
The president has made it clear that the United States supports the aspirations of the Iranian people for freedom and prosperity. It strongly opposes Tehran's efforts to destroy those aspirations, and to threaten the world by developing ballistic missiles, launching cyber attacks and financing terrorist proxies to destabilize the Middle East and beyond.
The new sanctions will send an unmistakable message to Tehran: change its forms or suffer the consequences.
The Obama administration's agreement with Iran failed to halt Tehran's serious lack and guarantee the security of the American people. As the Trump administration puts maximum pressure on the regime to reach a new agreement, Iran's energy sector is a natural target for sanctions. Iranian leaders use oil money to fill their own pockets and finance destructive foreign adventures instead of meeting the needs of their people.
The new sanctions will severely affect Iran's energy sector. But thanks to anticipatory actions taken by the world's leading producers, including the US. UU. To make up the difference, there should be a minimal effect on global energy markets.
Iran's oil exports began to plummet months ago when the gravity of US policy became clear. Of 2.7 million barrels per day in June, Iran's oil and condensate exports fell to less than two million barrels per day in September.
In response, major oil suppliers, such as Saudi Arabia, Russia and Iraq, have increased production. So has EE UU., Which became the world's largest oil producer in August. The US Energy Information Administration expects the world's oil supply to meet demand by 2019, even without Iranian oil.
The United States has driven its energy revival with a cascade of innovation. America now produces more energy than anyone would have thought possible a few years ago. Between August 2017 and August 2018, US crude production UU It increased 2.1 million barrels per day, the largest annual increase in US history. UU
And it only improves: Crude oil exports are expected to double by 2020. When infrastructure projects in the West Texas Permian Basin come online by the end of next year, production will expand even further. The new cross-border gas pipelines will also help Mexico and Canada increase their supply.
The United States is reaching the world's energy leadership precisely at the moment when its abundance is most needed. The new energy reward of the United States gives us the power to hold Iran accountable like never before. While entities that violate our sanctions will face the full weight of the economic power of the US. UU. To those jurisdictions that are on a clear path towards zero Iranian imports can be granted temporary exemptions to give time to fully comply.
Empowered by its new arsenal of energy that can free the world from dependence on Iranian oil, the US UU They will apply relentless pressure on Tehran until their leaders modify their destructive behavior and return to the negotiating table. Until then, the Iranian regime must remain isolated from the global economy. The international community is eagerly awaiting the participation of an Iran prepared to meet the basic standards of international conduct.
Mr. Perry is the Secretary of Energy of the United States.
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