Supply Irregularities in IT thesis example

A wide preponderance of the reserves and deposits of crude oil in Iran are discovered and explored in Khuzestan, which is located in close proximity of Iraqi border and the gulf of Persia (Petrochemical Industry and Market of Iran, 2005). Nearly half of the most important working oil fields of Iran, which are forty in number contain more than or equivalent to oil quantity of one billion barrels each. The reservoirs, which are located at Ahvaz, Bibi Hakimeh, Marun, Agha Jari and Gachsaran have a total of two-thirds of oil collection and production of Iran (Ule and Alexander, 2004). The crude oil that is found mostly contains sulphur in fewer amounts and is light. It has a gravity of three hundred to three ninety API range.

Production of Oil

With a bloody ruthless war going on in Iraq since for the last eight years, the production of oil has been affected drastically. Khuzestan province became the centre for fighting as most of the fighting had taken place in this province. Due to this long war period in Iraq, the competence of Iran to produce over five million barrels per day, reported in 1970s, decreased to three to three and half million barrels per day nearly after a decade (Petrochemical Industry and Market of Iran, 2005). Due to the war, the rate of investment in Iran got a set back because investors looked towards the war instead of looking towards the oil fields of Iran. The reduction of investment rate in the oil field is also considered as a loss in terms of commencement of war (Ule and Alexander, 2004). In the middle of 1990s, the investment raised and there was also renovation of several spoilt mechanism units. Due to these reinstallations and more investments, the production competence and capability of Iran increased to nearly 3.6 million barrels per day (WWP, 2006).