Iran is Slowly Killing OPEC

Iran may be the bullet that finally takes down OPEC.

The country’s already riddled with controversy surrounding alleged terrorist connections.

Sounds familiar, doesn’t it? It’s only been a few weeks since Qatar came under fire from Saudi Arabia for its ties to terrorism.

It’s a geopolitical powder keg, and things are not getting better.

And neither side is willing to back down.

But while we’ve waited to see if Qatar would capitulate to Saudi Arabia’s (and friends’) demands, you might’ve missed another story…

Iran: Back on the Oil Map

Let’s face it: Iran is officially back on the world’s oil stage, and it was the U.S. that helped it get there.

Sanctions from countries around the world have kept Iran’s production levels down for the last few decades.

Between 1979, when the sanctions went into place, and 2016, the country’s oil production plummeted from nearly 7 million bpd to less than 4 million.

It wasn’t until 2016 that the sanctions were lifted, starting with those imposed by the U.S.

Iran has been on the warpath ever since.

Even the recent production cut deal, which somehow managed to get Saudi Arabia and Russia on the same team, excluded Iran.

The country was, and still is, determined to grow its production back to pre-sanction levels, and it won’t be slowing down until it happens.

Here’s how well that’s going:

It’s a work in progress.

Meanwhile, OPEC is still fighting to keep its market share from slipping away entirely. It’s long lost the battle with U.S. shale, but the war’s not over yet…

Enemy of My Enemy

Even though Saudi Arabia and Iran seem to be on different sides of this fight, they’re going about solving it the same way: selling out.

Saudi Arabia, as you probably know, is looking to IPO its mammoth oil company, Saudi Aramco.

The company has been valued at more than $2 trillion and would be the largest IPO the world has ever seen!

That is… if anyone actually buys.

No doubt there will be people jumping on that bandwagon the moment it takes off, but there are a few things that may yet hold it back.

The biggest potential problem, of course, is the price of oil.

Oil stocks in general are looking a little speculative these days — at least those without the advantage of a good deal of U.S. Permian acreage — and Saudi Arabia is only offering around 5% of the company to IPO anyway.

If the country hopes to raise oil prices before the deal goes through, it’s got a lot of work to do.

Even though its latest deal is a lot smaller, Iran may be getting the better bargain here.

You see, instead of outright selling its business, Iran is making new friends in Europe.

This weekend, it was announced that the country signed a deal with French Total SA worth around $2 billion.

The project buys Total a 50.1% stake in Iran’s South Pars oil field, a natural gas and condensates resource jointly owned by Iran and Qatar.

Could Iran be making the switch from oil to natural gas?

More importantly, how much longer would OPEC last if it did?

Think of it like this: the better off Iran is financially, the bigger its push back into both oil and gas will be.

And now that Iran is finally getting back into the game, this certainly won’t be the last deal inked.

Their Loss

While OPEC’s problems compound, we’re seeing much brighter prospects a little closer to home.

Yet another oil resource, ignored for decades, has been quietly building up momentum.

Now, it’s ready to have what my colleague Christian DeHaemer calls its “Bakken moment.”

Longtime readers may remember when we first started talking about the Bakken shale play of North Dakota and how profitable it was for investors who got in early.

Chris has been hot on the trail of this newly revived oil play for months.

Tomorrow, he’ll be releasing his latest research detailing just how big this opportunity is and how you can get your piece of the action.

Newer readers who missed out the first time may just have a chance at their own “Bakken moment.”

Until next time,

Keith Kohl

Check us out on YouTube!

A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.