Iran's hydrocarbon profile: Production, trade and trend

Abstract

Iran has vast oil and gas reserves. Wish 5 per cent of the world's oil and 14 per cent gas it is placed as an important country on the world energy map. Iran is the second largest oil and gas producer among the Gulf States after Saudi Arabia. It is the second largest owner of gas reserves after Russia. Despite having huge amounts of oil and gas, it has been unable to translate these into production and exports due to many reasons. There is a difference between the pre‐and post‐Revolution petroleum industry because of changes in the physical aspects of the industry, domestic demand, and the world market. Oil production had fluctuated in the 1980s as a result of the Revolution and the Iran‐Iraq War. The war with Iraq and political instability were major factors for disruption of oil production and exports. But in the 1990s, oil production returned to normal with the end of the war with Iraq, and political stability. Despite resumption of normal oil production, it could not reach the mid‐1970s’ oil production levels. So, oil exports passed through ups and downs. In order to increase its oil and gas production, the Government of Iran has adopted many measures. It has invited many foreign companies to invest in its oil and gas industry. Some foreign companies have been investing in its oil and gas industry under “buy‐back” arrangements despite the US sanctions. However, the US sanctions have adversely affected Iran's oil and gas industry.