Oct 17, 2018 | Updated: 04:34 PM EDT

Iran's 2 Million Barrel Shale Oil Reserves Discovered In Western Province

Feb 22, 2017 12:43 AM EST

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New reports just recently surfaced that the area of the western province of Lorestan will get a big notice from the Iranian oil ministry due to the discovery of the significant shale oil reserves and stocked in the region. Bahman Soleimani, the National Iranian Oil Company's Soleimani, said on Monday, "The oil is light."

The shale oil found was totaled of two billion barrels and were found in the Ghali Koh Field. Soleimani said that their research and exploration on the study of the zone's shale gas reserves is expected to be complete by October 2017.

The same discoveries also happened in other provinces such as the places of Khouzestan, Kerman, and Semnan as reported in Reuters. Nonetheless, there were no such significant developments to establish how much shale oil they were maintaining and holding or whether producing oil from those reserves would be economically practicable.

It is still not clear on how the NIOC can produce oil from Lorestan shale reserves. According to the company, the exclusive technology that can do the work is in the hands of the US companies that is unfortunately banned from the Iran's oil projects. Apart from that, there are already speculations on whether creating and producing oil from shale reserves would be economically inexpensive for Iran assuming the high costs involved.

According to the Oil Price, Iran has the fifth's lowest costs for manufacturing and producing each barrel of crude oil. Rystad Energy, a global energy consulting enterprise, showed that the cost estimates for producing every barrel of oil in Iran stand at $12.6 while the highest and the lowest worth of price belonged to Britain and Kuwait respectively at $52.5 and $8.5.

Based on statistic quantity amount provided by the International Energy Agency (IEA), producing every barrel of shale oil ranges and costs from $95 to as low as $25. Iran's proven oil reserves at about 160 billion barrels are almost the amount to 10% of the world's total, was rank fourth among the petroleum-rich countries.

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