Iran needs investments, technology to become major energy player
Baku, Azerbaijan, July 21
By Aygun Badalova - Trend:
To become a major international energy player Iran needs foreign investments and modern technology, a professor of economics at U.S. Northeastern University Kamran Dadkhah told Trend.
He mentioned that Iran has the second largest proved reserve of natural gas (after Russia, although some sources put Iran as number one), and has the fourth largest proved reserve of crude oil (after Venezuela, Saudi Arabia, and Canada).
"The reason Iran is not a major player in the international energy market is that during the past 36 years Iranian fields have been deprived of adequate investment and modern technology. Even the existing fields have not been properly maintained. This has been partly due to mismanagement and partly due to sanctions," Dadkhah said.
"Thus, if the lifting of sanctions brings foreign investment and modern technology to Iran, the country will become a major player in the international energy market," he added.
Dadkhah also said that in order for Iran to become a major gas exporter to Europe, the country in addition needs to join a pipeline system to Europe for land transportation and investment in major facilities to liquefy the gas to transport it by sea.
Iran and the P5+1 have reached a nuclear deal after more than a decade of on-off negotiation, granting Tehran sanctions relief in exchange for curbs on its nuclear program.
The agreement aims to limit Iran's nuclear work for more than a decade in exchange for the gradual suspension of sanctions that have slashed Iran 's oil exports and crippled its economy.
BP Statistical Review of World Energy 2015 also shows that Iran possesses the world's largest proven natural gas reserves, at 34 trillion cubic meters - or 18.2 percent of the world's total proven reserves.
Despite having the world's biggest gas reserves only shared 5 percent of global natural gas production, at 172.6 billion cubic meters in 2014 (excluding recycled and flared gas), according to the report. The figure indicates a rise by 5.2 percent compared to country's gas output in 2013.
BP's report also indicates that Iran 's proved oil reserves reached 157.8 billion barrels in 2014, 9.3 percent of the total global reserves. The country's oil production, including crude oil, gas condensates and NGLs (the liquid content of natural gas where this is recovered separately) was 3.614 million barrels per day (mbpd) in 2014, two percent more year on year.
The figure indicates that Iran's oil output accounted for 4 percent of total global production.