Shana EXCLUSI VE interview with Gordon Duff

Senior Vice President of Castle, Overmyer and Poole

Gordon Duff is a Marine combat veteran of the Vietnam War. He is a disabled veteran and
has worked on veterans and POW issues for decades.
Gordon Duff is an accredited diplomat and is generally accepted as one of the top global
intelligence specialists. He manages the world's largest private intelligence organization and
regularly consults with governments challenged by security issues.
Gordon Duff has traveled extensively, is published around the world and is a regular guest
on TV and radio in more than "several" countries.
Gordon Duff is a trained chef, wine enthusiast, avid motorcyclist and gunsmith specializing
in historical weapons and restoration.
Business experience and interests are in energy and defense technology.



First of all we thank you for according this interview with Shana (Petro Energy Information
Network).

1. As that is our 1
st
interview with you please introduce yourself for our visitors & tell us
about your different international experiences on Oil & Gas issues.
My name is Gordon Duff. I served as Senior Vice President of Castle, Overmyer and Poole
along with Capital Investments USA and Capital Investments International, merchant banks
specializing in financing oil and gas transactions. I have advised a number of governments in
Africa and the Middle East on oil policy, negotiated oil agreements and been party to many
billions of dollars in oil and gas transactions. I have also worked on pipeline and refinery
projects. I am currently Managing Director of Adamas Aerospace, a London based company that
specializes in use of satellite and platform based sensors in resource and environmental
management along with security issues.

2. Can you please explain the current situation of the Global Gas Market? Who & how,
are the main players on this market?
The biggest player in the global gas market is Russia. Russia and their marketing partners control
the markets of Europe through a combination of factors, primary among these the ability to
deliver gas directly from wellhead to consumer through strategic pipelines.
The cost efficiency of this model compared to liquidification plants with costs of not only
transportation, generally ship and sometimes rail, along with storage, has left Russia paramount, a
position they use for political leverage.
The basis, the financial model, of pipeline infrastructure direct to both consumers and
commercial users inhibits competition. As we are currently seeing, the promise by the US to
offer LNG (Liquid Natural Gas) as a hedge against aggressive Russian pricing has a number of
flaws.

The gas supplies of the US are at high current levels due to fracking, a practice dangerous to
the environment that has put tens of thousands of square miles of the United States at risk of
becoming uninhabitable due to poisoning the aquifer.
Additionally, gas supplies from fracking seldom last more than 5 years, a fact ignored when
being presented to the public as an offset to environmental risks.
As with oil, gas supplies are very much a political issue, meaning that there are two directions,
gas prices and availability can drive governments to change foreign policy objectives but,
moreover, the economic power of gas producers can also push governments to change policy to
effect prices. To that extent, fabricated crises and false flag terrorism are seen as marketing
strategy.
Wars of aggression, threats to pipelines, production fields or key sea transit points such as
Hormuz, are also issues of marketing policy.
Key areas of pushback may be seen in Qatars dumping of gas supplies at less than cost, a
move tied to that small nations desire to become a global player militarily. Thus, Qatar pumps
gas into the market to suppress pricing while expending capital in support of jihadists such as the
ISIS, along with substantive funding from Saudi Arabia. As the ISIS moves into Iraq, it becomes
increasingly clear that they are chasing oil and gas supplies, not seeking to form a political entity.

3. What is Irans role on Global Sale of Gas?
Iran can and will move on the model we have seen from Russia, making use of pipelines and their
inherent economic efficiency to form long term trade relationships with Pakistan, China and other
nations that join the pipeline fed marketing group as driven by global pricing, availability and
political concerns tied to pipeline routes.
In the end, Iran will be a big player in Asia and eventually into Southeast Asia.

4. Let us know please the current situation of the World Oil market. Who are the main
players on this market?
World oil markets are subject to the geopolitical manipulations of a handful of individuals.
America's Koch brothers manipulate oil futures for instance. It doesn't take a genius to note that
oil pricing is not subject to supply and demand. When demand drops, supplies are either
mysteriously cut or a global crisis of some kind is staged in a timely manner.
After the global financial crash of 2007/8, oil prices should have returned to below $50 bbl. They
didn't. Instead, the "Iranian nuclear crisis" was invented and prices stayed up, draining the asset
base of all but the wealthiest few in the west. We call this a "pump and dump" and manipulated
oil markets were very much a part of the model used.
The ability to wildly manipulate oil and fuel pricing based on conspiracy theories, conjecture,
phony news stories and false flag terrorism has been one of the most destabilizing economic
factors of the past century.

5. What is Irans role on Global Sale of Oil?
Iran is the 4
th
largest producer of natural gas. Key to Irans marketing position is its development
of power generation including nuclear power, which will allow higher percentages of gas to enter
the world market.
Though Iran has more gas available for export than any other nation, Iran exports as yet little
natural gas. This isnt an accident, not when the players in the natural gas production and
pipeline delivery are examined carefully.
The economic impetus tied to suppressing Irans export of natural gas is clear. As a market
forces with vast production capability and an inherent unwillingness to engage in price fixing and
market manipulation, Iran has made powerful enemies.

Thus, as this situation begins to redress, the hotels of Tehran fill with newfound friends, not
simply seeking a piece of the pie, but knowing that when Irans production come on line as
deliverable, previous market paradigms will no longer be applicable.

6. Iran Capable of 4mb/d Oil Output, Irans vice-president says. What is your idea on
that?
Iran is probably capable of easily exceeding 4mb/d and can do so within three years. The key
issues are that Irans oil is highest quality, the reserves are capable of sustaining production for
many years and, with this much additional oil entering the world market while, simultaneously,
the US is becoming more energy independent, world markets are threatened with a significant
correction.
Toward that end, were Chinas growth levels to prove less than sustainable, a hypothesis seen as
likely, Iran will find herself well positioned to use oil revenue to build a diverse economy but not
capable of maintaining an exclusive hydrocarbon export economy, a serious error now
threatening Russia.

7. 3 days ago the Emir of Kuwait did travel to Iran accompanied a commercial delegation
http://www.shana.ir/en/newsagency/218587/Iran-Kuwait-to-Continue-Gas-Talks), in
your eyes what is the importance and necessity of establishing a Gas relationship
between two countries?
Natural gas exporting nations live in uncertain circumstances. The US, as the worlds largest
consumer and producer, establishes the worlds price marks. Similarly, pipeline projects and
liquification efforts are often financially squeezed as we have seen with cross Sahara pipeline
plans or supplies from Libya to Southern Europe. Predatory gas markets deeply parallel and even
drive, as mentioned earlier, global security threats. Unless global gas markets are stabilized,
global development and global security will be equally threatened.

8. Iran Oil and Gas 2014 Summit will be held in Dubai from June 23 to 25. What is the
effect of this international event on Global Market?
The Dubai Summit will help integrate Iran into the global futures trading structure and is
intended to stabilize the market effect of Irans potentially vast contribution to a world whose
hunger for natural gas during a time when supplies and pricing have been subject to uncertainty
has stifled development, particularly in Africa.

9. Please explain a little about the Iraqi Oil market & the effect of what is happening
these days in the country. What is the relation between ISIL & the World Oil
Market?
The ISIL is all about oil. Taking advantage of Shiite control of key oil regions in Iraq and the
displeasure Kurdistan has expressed at being subject to Oil policy from Baghdad, policy that
matured at the height of corruption driven by the vast US led theft of Iraqi oil, many of Iraqs
Sunni leaders are ready to separate from the Baghdad government.
Strangely, the ISIL is NOT seen as a threat to world oil markets. This, in itself, is telling.

10. In your eyes, what is the impact of US & EU sanction on Iranian Oil & Gas Market?
US and EU sanctions have been economically suicidal for the West. Walling of Iranian oil
exports has been only one of many methodologies used to manipulate oil prices, particularly the
oil futures market. Thus, when supplies are burgeoning and, with Iranian production on line,
reaching the point of potential glut, oil prices maintain disastrous levels.
The problem in the west has been that the excess profits from oil profiteering is not reinvested
nor taxed. It is expressed in lower standards of living, declining economies and political
instability.

11. IGATs Facilitate Gas Exports to Europe, how you argue that?
The IGAT pipelines are a good political move, integrating Iran with her Gulf neighbors and
adding to a global mosaic as to available on line supplies available to the gas hungry west. As
an economic move, it is very good policy for Iran and makes her less vulnerable to economic
factors effecting Pakistan, India and China.

12. Reformer Production Halt Saves $150m a Year, what is your analysis on this?
Reformer represented a health threat to Iran and was only an option because of sanctions. Iran
will now be free to use that petrochemical capacity for production of products based on global
market needs rather than political necessity.

Interview by Hamed Ghashghavi
Iranian Researcher of Western European and North American Studies