Energy

Total Energy Consumption in Iran, by Type (2007)
Total Energy Consumption in Iran, by Type (2007)

oil reservesIran holds 10% of the world's proven oil reserves and 15% of its gas. It is OPEC's second largest exporter and the world's fourth oil producer.

Energy resources in Iran consist of the third largest oil reserves and the second largest natural gas reserves in the world.[1] Iran is in a constant battle to use its energy resources more effectively in the face of subsidization and the need for technological advances in energy exploration and production. Energy wastage in Iran amounts to six or seven billion dollars (2008). The energy consumption in the country is extraordinarily higher than international standards. Iran recycles 28 percent of its used oil and gas whereas the figure for certain countries stands at 60 percent.[2] Iran paid $84 billion in subsidies for oil, gas and electricity in 2008.[3] Iran is one of the most energy intensive countries of the world with per capita energy consumption 15 times that of Japan and 10 times that of EU. Also due to huge energy subsidies, Iran is one of the most energy inefficient countries of the world, with the energy intensity three times higher than global average and 2.5 times the middle eastern average.[4]

Iran is one of the leading members of OPEC (Organization of Petroleum Exporting Countries) and the Organization of Gas Exporting Countries (GECF). Iran received $47 billion dollars in oil export revenues, which accounts for about 50% of state revenues.[5] Natural gas and oil consumption both account for about half of Iran’s domestic energy consumption. With its heavy dependence on oil and gas revenues Iran continues to explore for new sources of natural gas and oil. Recently Iran has focused its energy sector on the exploration of the South Pars offshore natural gas fields in the Persian Gulf.[6]

Iran has become self-sufficient in designing, building and operating dams and power plants and it has won a good number of international bids in competition with foreign firms.[7][8]

Power generation capacity of Iranian thermal power plants reached 173 terawatt hours in 2007. Accounting for 17.9 percent of power production in the Middle East and African region. Natural gas has been the main energy in Iran in 2007, comprising over 55 percent of energy needs, while oil and hydroelectricity accounted for 42 and 2 percent respectively. The region’s energy need will increase by 26.8 percent until 2012.[9]

Energy plays an important role in Iranian politics. Robert Baer in his book "The Devil We Know: Dealing with the New Iranian Superpower" argues that Iran has attained the status of an Energy superpower and is on its way to become a military-political superpower.[10]

Overview

Energy in Iran[11][12][13]
  Capita Prim. energy Production Export Electricity CO2-emission
  Million TWh TWh TWh TWh Mt
2004 67.0 1,696 3,233 1,530 137 369
2007 71.0 2,151 3,757 1,602 165 466
2008 72.0 2,350 3,801 1,429 174 505
Change 2004-2008 7.5 % 38.5 % 17.6 % -6.6 % 27.0 % 36.9 %
Mtoe = 11.63 TWh, Prim. energy includes energy losses

Energy Forecast

Source: B.M.I[14] 2010 2015 est. 2010-15 growth 2015-20 growth 2010-20 growth Remarks
MENA-Power generation 1,222 TWh 1,518 TWh +24.2% N/A N/A where markets were depressed by the economic slowdown in 2009.
MENA-Termal power generation 1.140 TWh (93.3% of total electricity supplied in the region) 1,378 TWh (90.8% of total electricity supplied in the region) N/A N/A N/A thanks in part to environmental concerns that should be promoting renewables, hydro-electricity and nuclear generation.
MENA-Energy demand N/A 1117 tonnes of oil equivalent (toe) +20.8% N/A N/A N/A
MENA-Nuclear demand N/A ~25 TWh N/A N/A N/A N/A
IRAN-Real GDP growth N/A N/A 2% per year (average) N/A N/A N/A
IRAN-Population 73.9 million 78.6 million N/A N/A N/A N/A
IRAN-GDP per capita growth N/A N/A +31% N/A N/A N/A
IRAN-Electricity consumption per capita N/A N/A +5% N/A N/A N/A
IRAN-Power consumption 161 TWh 179 TWh 2.2% per year (average) N/A N/A a broadly balanced market
IRAN-Electricity generation N/A N/A +12.2% +11.9% +25.5% N/A
IRAN-Thermal generation 192 TWh (16.85% of MENA's market share) (14.45% of MENA's market share) N/A N/A N/A N/A
IRAN-Primary Energy Demand (PED) & Growth 37.8% (gas), 40.4% (oil), 0.8% (hydro) N/A +14.4% +12.6% +28.8% N/A
IRAN-Energy demand 22.38% (Iran's MENA market share) 21.21% (Iran's MENA market share) N/A N/A N/A N/A
IRAN-Nuclear demand 0 10 TWh (38.46% of MENA's market share) N/A N/A N/A Bushehr Nuclear Power Plant set to go online in 2011. Nuclear power is one key element of generation growth.

References

  1. ^ https://www.cia.gov/library/publications/the-world-factbook/rankorder/2178rank.html
  2. ^ http://www.payvand.com/news/08/oct/1303.html
  3. ^ http://www.iran-daily.com/1387/3111/html/economy.htm
  4. ^ http://www.rferl.org/content/Sanctions_And_Irans_Achilles_Heel/2066744.html
  5. ^ BBC News, “Iran Energy: Overview”, http://news.bbc.co.uk/1/hi/world/middle_east/4688984.stm, April 1, 2008.
  6. ^ a b c d EIA, “Iran’s Energy Data”, http://www.eia.doe.gov/emeu/cabs/Iran/Background.html, April 1, 2008.
  7. ^ http://www.iran-daily.com/1387/3266/html/economy.htm
  8. ^ http://www.payvand.com/news/10/mar/1073.html
  9. ^ http://www.iran-daily.com/1387/3280/html/economy.htm
  10. ^ http://books.google.com.pk/books?id=ztdT0tncFnUC&dq=robert+baer+iran+super+power&source=bl&ots=yPlk3dMXjL&sig=J7o7a6a0AVZ5fErhjK4-EzAuopM&hl=en&ei=VnJnTOW3HYegvgP0l9n9Aw&sa=X&oi=book_result&ct=result&resnum=3&ved=0CCEQ6AEwAg
  11. ^ IEA Key energy statistics 2010 Page: Country specific indicator numbers from page 48
  12. ^ Key world energy statistics 2009
  13. ^ Key world energy statistics 2006
  14. ^ http://www.payvand.com/news/11/apr/1007.html

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