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August 2011, No. 61


Exclusive 16th International Oil Show

Parliament speaker:

Sanctions Will Only Harm Western Countries

The first national congress on outlook of oil industry for 2025 was held on the sidelines of the 16th International Oil, Gas and Petrochemicals Exhibition. The event was attended by the parliament speaker, members of parliament, oil minister and his deputies.


By allocating suitable budget, Majlis deputies are finding new ways to finance oil industry projects


First, the (former) minister of petroleum, Massoud Mirkazemi took to the podium to talk about the important role of Iran's energy resources.

Addressing the congress, he added that Western countries imposed sanctions to limit Iran's activities and in addition to forbidding gasoline sales, they have also sanctioned investment in Iran's oil industry.

"Our energy exports are mostly to East Asia…. Creating imbalance in Iran's foreign exchange revenues is a policy followed by Western countries and, at present, the balance sheet for gas sales is negative," he added.

Chairman of the OPEC also noted that more than 50 percent of resources to run the country come from oil sales and crude oil plays an undeniable role in national economy. "Therefore, we must adopt a clear-cut national strategy to achieve goals of the 20-Year Vision Plan," he added.

He stated that a daily average of more than 4 million barrels of oil and 600 million cu. m. of natural gas are produced in Iran on a daily basis.

Mirkazemi said total production of oil, gas and condensates in Iran was equivalent to about 8 million barrels of crude oil.

"Out of that figure, 5.2 million barrels are exported and the rest in consumed in the country," he said.

The minister added that Iran's oil and gas balance is currently negative and the current trend in consumption will make it even more so in the future.

He opined that in the absence of more investment in Iran's oil and gas industry and since many oil fields are past their half-life, there are concerns about continued production and export of crude oil.

Further in the conference, Dr. Ali Larijani, the parliament speaker, addressed the audience noting that defining a correct behavioral model is a requisite for the modern energy market.

Pointing to the role of energy in our country, he said that energy sector is a vital sector in all countries and Iranian officials should pay special attention to it due to its vital role in economy.

"As our mastery of oil industry technology increases, influence of buying countries reduces and we have allocated special investment to energy sector in the Fifth Economic Development Plan," he said.

Larijani expressed hope that this goal will be achieved through cooperation between the Ministry of Petroleum and Majlis Energy Commission.

Hamid Reza Katouziyan, head of Majlis Energy Commission, also addressed the congress noting that Iran's oil output was declining by an annual average of 35,000-40,000 barrels.

"By allocating suitable budget, Majlis deputies are finding new ways to finance oil industry projects," he said.

Chairman of Majlis Energy Commission stated that international sanctions have had negative impact on Iran's oil and gas industry, but they have also encouraged indigenization of modern technologies in that industry.

The MP called for correction of oil and gas contracts, saying, "There is high sensitivity about Iran's national interests in oil and gas contracts and changes to those contracts compared to other countries are necessary for that purpose."

 

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  August 2011
No. 61