MONGABAY.COM
Mongabay.com seeks to raise interest in and appreciation of wild lands and wildlife, while examining the impact of emerging trends in climate, technology, economics, and finance on conservation and development (more)
WEEKLY NEWSLETTER
|
|
Iran
Index
In 1986 Iran's reported crude oil reserves of 48.5 billion
barrels ranked behind only those of Saudi Arabia, the Soviet Union,
and Kuwait. By February 1987, the NIOC estimated that Iran's
recoverable oil reserves had nearly doubled from the 1986 level to
93 billion barrels, a figure that could not be verified by outside
specialists. In the first half of 1986, Iran had produced 1.9
million bpd of oil, of which 800,000 bpd went for domestic
consumption and 1.1 million bpd for export. Production dropped
during 1986 as a result of the oil pricing crisis and the bombings
of Khark Island and Sirri Island. By early 1987, oil exports had
increased and neared the level set in OPEC's December 1986
agreement, averaging 1.5 to 1.7 million bpd.
Iran made strides in the development of the gas industry as
well, with efforts dating back to the 1960s. One area of emphasis
was the extraction of "associated" gas, natural gas found in
solution with oil, which previously had been flared. In 1966 Iran
reached agreement with the Soviet Union to deliver up to 28 million
cubic meters of gas per day. In return, the Soviets committed
equipment and expertise to build a steel mill, an engineering
plant, and other related facilities. In 1966 the government also
formed the National Iranian Gas Company, a wholly owned subsidiary
of NIOC, to produce gas for both domestic consumption and export.
By October 1970, the Iranian gas trunkline had been completed,
capable of moving gas from the southwestern Iranian oil fields to
the Soviet border at Astara on the Caspian Sea. Spur lines branched
off the trunkline to major Iranian cities, supplying gas primarily
for industrial use. Pipeline capacity reached 45.3 million cubic
meters per day by 1975. Iran had made a heavy investment in
developing the gas industry by 1977, anticipating a decline in oil
production in the early 1980s.
Gas production increased from 20 billion cubic meters in 1980
to about 35 billion cubic meters in 1985. Much of this increased
production, however, was flared (an inefficient but inexpensive
process), peaking in 1982 at over 50 percent of gas produced (14.2
billion cubic meters flared of 24.5 billion cubic meters produced),
largely as a result of Iraqi destruction of facilities for
producing and reinjecting natural gas. Recovery of natural gas
improved thereafter, with flaring accounting for less than 22
percent of production in 1984 and 17 percent in 1985.
The development of the Iranian gas industry was bolstered by
the discovery of several natural gas fields in 1973 and 1974.
Reserves in 1974 stood at 7.5 trillion cubic meters, and by 1977
known natural gas reserves amounted to 10.6 trillion cubic meters.
According to Iranian sources, natural gas reserves in Iran were the
second largest in the world at 13.8 trillion cubic meters in proven
reserves as of 1987. This was more than the combined reserves of
the entire Western world. Additional gas deposits were discovered
in Baluchestan va Sistan Province in August 1986. Only Soviet
reserves, estimated to be some 3.5 times larger, surpassed Iran's.
Despite its enormous reserves, Iran exported no gas from 1980, when
a pricing agreement with the Soviet Union was canceled and the gas
trunkline to the Soviet Union was closed, to 1986. Because the
Soviets refused to pay Iran's price, Iran turned its gas reserves
to domestic industrial, commercial, and residential use. In August
1986, Iran announced that it would resume the export of natural gas
to the Soviet Union, with the expectation of returning eventually
to the previous export level of 10 billion cubic meters per year.
Subsequently, the resumption of natural gas export was postponed
and no deliveries had occurred as of the end of 1987.
Data as of December 1987
|
|