Energy-rich and strategically located, Iran is the second- largest producer of crude oil in the Organization of Petroleum Exporting Countries and holds about 9 percent of the world's proven oil reserves, as well as natural gas reserves second only to Russia's. In 1999 Iranian oil output averaged 3.6 million barrels of oil per day, although Iran's sustainable production capacity has been estimated to be as high as 4 million barrels per day. Net exports currently run about 2.3 million barrels per day, about half going to Asia and the rest to Europe and Africa. Total refining capacity, about 1.5 million barrels per day, is insufficient to meet domestic demand.
Iran's estimated natural gas reserves of 812 trillion cubic feet are mostly undeveloped and thus hold enormous potential for expanded output to supply growing domestic consumption and to increase exports. A number of efforts to develop gas fields and pipelines are under way, including a $2-billion project involving the French firm Total, Russia's Gazprom, and Malaysia's Petronas, to develop the vast South Pars natural gas field. Iran has also concluded a $20-billion deal to supply Turkey with natural gas, although that project is currently on hold.
More than 90 percent of Iran's installed electric power generation capacity of 27 gigawatts is in thermal power plants, mostly fired by natural gas. The government intends to expand both thermal and hydroelectric capacity and has said it expects to privatize the generation industry in order to reduce energy waste and state subsidies. Foreign investment will reportedly be welcome. Iran's Atomic Energy Agency has also announced the goal of supplying 20 percent of electricity consumption from nuclear power plants. The country has five nuclear reactors and is building others with Russian help. The United States opposes Iran's nuclear program on grounds that it could support development of nuclear weapons.
Per-capita energy consumption in Iran was estimated at 72 million Btu in 1998, about one-fifth the U.S. level. Per-capita carbon emissions, estimated at 1.3 metric tons of carbon in 1998, were about one-quarter U.S. per-capita emissions. The Iranian gross domestic product reached $201 billion in 1999 and is expected to grow 4.2 percent in 2000. Inflation, however, though down from last year, is still expected to reach 13.4 percent, and external debt was estimated at $16.3 billion in 1999. Iran's 67 million people are overwhelmingly Shi'a Muslim and Iran has been an Islamic republic for more than 20 years. Elections in February of this year produced a compelling victory for reformist candidates to the country's parliament.
Country Analysis Brief: Iran is available only via the Internet.
If you are having technical problems with this site, please contact the EIA Webmaster at webmaster@eia.doe.gov or call 202-586-8959. For general information about energy, contact the National Energy Information Center at 202-586-8800 or infoctr@eia.doe.gov.
URL: http://www.eia.doe.gov/emeu/plugs/pliran.html
File last modified: March 27, 2000