By Andrew Lumsden, Research Associate
Like many of its Middle Eastern neighbors, the Islamic Republic of Iran sits atop considerable deposits of fossil fuels. It boasts the world’s second largest reserves of natural gas and the fourth largest reserves of crude oil. Iran extracts an estimated 4.1 million barrels per day of crude oil and nearly 200 billion cubic meters annually of natural gas, making it respectively the world's fifth and third largest producer of these fuels. Oil is critical to the Iranian economy with about half of the country’s total revenue coming from its sale. Until recently, however, natural gas in Iran has been almost exclusively for domestic consumption.
Iran's oil and gas sector has been buoyed by the 2015 Joint-Comprehensive Plan of Action (JCPOA) which relieved U.S., U.N and E.U sanctions under which Iran’s ability to export oil and access foreign investment had been curtailed. With the European market again open to it, Iran’s oil exports have been on the rise. In 2017, the Islamic Republic exported nearly 800 million barrels of crude oil, 80% more than in 2016. These sales netted $41 billion in revenue.Read More