Energy-hungry Iran may end up without oil, gas to export by 2025

Business Materials 24 February 2016 14:59 (UTC +04:00)

Baku, Azerbaijan, Feb.24

By Emil Ilgar - Trend:

With current pace of energy intensity, Iran may end up without having any surplus oil and gas to export, said a top Iranian official.

Without decreasing the energy intensity, the country's energy consumption would reach 2.6 billion barrels of oil equivalent (OE) per annum by 2020 and the continuance of the current pace would leave Iran without any surplus oil and gas to export by 2025, Director of Iranian Fuel Conservation Organization Nosratollah Seifi said, the official website of the Organisation reported.

Energy intensity is the ratio between the gross inland consumption of energy (or total energy consumption) and Gross Domestic Product (GDP) calculated for a calendar year.

* Energy intensity (Barrel per 1 million rials)

* Energy productivity (1000 rials per barrel)

According to the International Energy Agency, the energy intensity index in Iran is one of the highest in the world (twice as much as the world average) and has been increasing on average by about 3.4 percent per year over the past 40 years.

Seifi added that with 6-percent GDP growth a year, halving the energy intensity would push the energy consumption to 1.414 billion barrels of OE annually by 2020.

The official added that halving the energy intensity requires some $192 billion worth of investment, however this way Iran would eventually save some 5 billion barrels of OE worth $870 billion, along with 1.8 billion tons of CO2 emissions less, create 3 million jobs in 15 years.