He bombing of the Iranian South Pars gas field open one new phase in the Iran war. The initial reaction of the Iranian Government is a clear example of the new situation. Iran has warned Gulf countries that any country’s energy assets are now “legitimate targets.” Facilities in Qatar, Saudi Arabia and the United Arab Emirates are on the list of places at risk of airstrikes by Tehran.
What is the South Pars deposit?
He South Pars-North Dome natural gas field is a condensate natural gas reservoir, shared by Iran and Qatar, located in the depths of the Persian Gulf. It has an area of 9,700 square kilometers, of which 3,700 square kilometers (South Pars) are in Iranian territorial waters and 6,000 square kilometers (North Dome) are in Qatar’s territorial waters.
Under the sea, the world’s largest gas field
The field, located largely under the sea, consists of two independent gas-bearing geological formations. One of them is Kangan (Triassic) and the other is Upper Dalan (Permian). Each formation is divided into two different reservoir layers, separated by impermeable barriers. The field is made up of four independent reserve layers. According to the International Energy Agency (IEA), the combined structure is the largest gas field in the world with gas pockets that were in full production before the war. It is considered that these pockets make up the largest accumulation of conventional hydrocarbons (gas and oil) in the world, even larger than the oil field of Ghawarlocated in the Al-Ahsa Governorate, in the Eastern Province of Saudi Arabia. Ghawar occupies an area of 280 kilometers by 30 kilometers, the largest conventional oil field in the world.
The South Pars field’s recoverable gas reserves are equivalent to about 215 billion barrels of oil, and it also has about 16 billion barrels of recoverable condensate, corresponding to about 230 billion barrels of oil equivalent of recoverable hydrocarbons.
The attack, a dangerous step
The Israeli attack on the South Pars field has been considered a priori as a “dangerous and irresponsible” step, as stated by Majed Al Ansari, spokesperson for the Ministry of Foreign Affairs of Qatar, in a publication on X. The threat of hydrocarbon production in the Middle East could even cause a lack of supply on a global scale, especially in Europe and Asia. If the United Arab Emirates becomes more involved in the war, the war escalation will be consolidated, due to the great military power of the UAE with bases in different parts of the planet. Anwar Gargash, senior advisor to UAE President Sheikh Mohamed bin Zayed, said Iran made a miscalculation in attacking Arab states. The strikes will bring them closer to Israel and the United States, further demonstrating why the region cannot accept Iran’s nuclear and missile programs, he added. Gargash indicated that the United Arab Emirates might be willing to help secure the Strait of Hormuz.
Brent rises more than Texas
Brent crude oil soared this Wednesday following Iran’s new threats to attack oil facilities, rising up to 6% and exceeding $109 per barrel. The reference gas price in Europe increased by up to 9.1%, according to data from ICE Futures Europe. Oil prices have skyrocketed by nearly 50% since the United States and Israel began their war on February 28, prompting an Iranian response with the launch of missiles and drones against Middle Eastern countries. The reference prices for Brent oil and West Texas Intermediate oil showed greater divergence than usual this Wednesday. The US is almost self-sufficient in energy terms and with the contribution of Venezuelan oil, dependence on oil from the Middle East is reduced.
Hormuz loses importance if there is no hydrocarbon production
The region’s main energy companies have been forced to reduce production, mainly due to the effective blockade of the strategic Strait of Hormuz. But in the event of indiscriminate attacks against oil wells, the security of the Strait of Hormuz could cease to be a priority, as production is paralyzed.
The US depends less on Hormuz
US President Donald Trump, who has repeatedly complained about the lack of interest from supposed allies in joining the war or helping to secure Hormuz, said on social media Wednesday that countries other than the United States should take responsibility for the sea route. “US allies must take action: they must act and help open the Strait of Hormuz,” he declared.
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