Energy expert reveals positive & negative aspects of Iran’s oil industry

Oil&Gas Materials 15 January 2019 17:32 (UTC +04:00)

Baku, Azerbaijan, Jan. 15

By Elnur Baghishov - Trend:

Supplying gas to cities and villages in Iran, turning of gas into an alternative to oil, as well as development of the petrochemical industry are positive aspects of the oil industry, energy expert Murtaza Behroozifar said in an interview with ISNA, Trend reports.

Naturally, the non-use of reserves and the loss of Iran’s position as the energy center in the region are one of the weak points, he said.

Behroozifar added that many major oil-related spheres have been expanded. Instead, smaller areas that would result in creation of more jobs were left aside, he said.

Therefore, Iran currently imports some petrochemical products, he noted.

“There is such an opinion that if a city has a petrochemical complex, that city is considered developed,” he said. “However, some of the products manufactured in the complex are intended for export and must be located by the sea. On the other hand, a petrochemical complex can produce raw materials for another company. But since this complex is located far from the sea, transportation costs should also be considered.”

Regarding supplying gas to cities and villages in Iran, he said that turning of gas into an alternative to oil was a very positive step.

“Non-improvement of fuel consumption in recent years has resulted in the waste of energy resources,” he noted. “The capacity of refineries can be increased. However, the automobile industry didn’t progress and no cars with little gasoline consumption were produced.”

“As for oil and gas exports, during these years, we could have laid pipes for gas exports to the European continent or even create complexes for LNG,” he said. “Iran could have become an energy center in the region thanks to its oil and gas reserves as well as its geographical position. But we have lost many opportunities in this direction. If we had succeeded, it would have been impossible to impose sanctions on Iran.”