Dr. Peter Wells is an international oil and gas expert with over 30 years of technical and business experience, including at senior levels with major oil companies such as Shell and BP, in the Middle East, Caspian region and west Africa. He has been closely involved with several major oil and gas deals in the Middle East and Caspian regions, most notably in Azerbaijan and Iran. Dr Wells is currently an advisor to Toyota Motor Company on world oil and gas supply. He is also a founding director of the geological consulting company Neftex Petroleum Consultants.
When I worked for Chevron we bought oil by the barge from the world market. Chevron is known as an Investor-owned Oil Company (IOC). They are headquartered in the United States but are not owned by the United States. The goal of Chevron, and other IOCs, is to report a profit to their shareholders.
There are oil companies that work with their governments for the strategic well being of the country. There are also oil companies that are extensions of their government.
In the past, almost all oil was sold on the world market and purchased in US dollars. Wells asserts that Iran is selling crude oil directly to China, in large numbers.
Does this make a difference? Yes, says Wells, Iran is effectively taking oil off the world market.
Why is Iran selling directly to China? Iran needs the money and the technology.
Is sanctioning Iran a good idea, since China is not complying?