You are here -allRefer - Reference - Country Study & Country Guide - Iran >

allRefer Reference and Encyclopedia Resource

allRefer    
allRefer
   


-- Country Study & Guide --     

 

Iran

 
Country Guide
Afghanistan
Albania
Algeria
Angola
Armenia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belize
Bhutan
Bolivia
Brazil
Bulgaria
Cambodia
Chad
Chile
China
Colombia
Caribbean Islands
Comoros
Cyprus
Czechoslovakia
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
Georgia
Germany
Germany (East)
Ghana
Guyana
Haiti
Honduras
Hungary
India
Indonesia
Iran
Iraq
Israel
Cote d'Ivoire
Japan
Jordan
Kazakhstan
Kuwait
Kyrgyzstan
Latvia
Laos
Lebanon
Libya
Lithuania
Macau
Madagascar
Maldives
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Nepal
Nicaragua
Nigeria
North Korea
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Seychelles
Singapore
Somalia
South Africa
South Korea
Soviet Union [USSR]
Spain
Sri Lanka
Sudan
Syria
Tajikistan
Thailand
Turkmenistan
Turkey
Uganda
United Arab Emirates
Uruguay
Uzbekistan
Venezuela
Vietnam
Yugoslavia
Zaire

Iran

Oil and Gas Industry

Petroleum has been the main industry in Iran since the 1920s. Iran was the world's fourth largest producer of crude oil and the second largest exporter of petroleum at the peak of its oil industry in the mid-1970s. The war with Iraq cut Iran's production in the 1980s, although Iranian oil reserves remained the fourth largest in the world.

Nationalization of the oil industry in 1951 resulted in temporary political and financial chaos. Production did not resume until late 1954 (see Mossadeq and Oil Nationalization , ch. 1). As part of the nationalization process, the government formed the National Iranian Oil Company (NIOC). As owner, the government directed NIOC policy. As a result of the Consortium Agreement reached in 1954 between the government and a consortium of foreign oil companies, industry control of the oil companies was left virtually intact, but the agreement greatly increased the government's share of income from each barrel of oil produced. The combination of the larger share of income and rising oil production provided the government with increased revenues with which to finance industrial development. In addition, slow but steady progress was made in reestablishing Iran's relations with Western powers in the aftermath of nationalization. The resolution of the oil crisis in 1954 (nationalization of oil and the signing of the Consortium Agreement) led to a policy of increased economic and political cooperation between Iran and states outside the Soviet sphere of influence. In 1961 Iran joined with other major oil-exporting countries to form OPEC, whose members acted in concert to increase each country's control over its own production and to maximize its revenues.

When Iran's economy worsened after the outbreak of war with Iraq, its willingness to abide by OPEC guidelines decreased. From 1983 to 1984, OPEC priced oil at US$29 per barrel, but Iran undercut OPEC prices at US$28 per barrel through October 1984 and subsequently reduced it even further to US$26.50 per barrel. Iran continued deliberate undercutting until the pricing crisis in July 1986, when prices dropped below US$10 per barrel and the oil-exporting countries met to reach agreement on both price and production levels. The thirteen members of OPEC, and several non-OPEC countries, agreed in December 1986 to a price of US$18 per barrel, with a maximum differential of US$2.65 between light and heavy crude oil. (Light crude is the source of products such as gasoline and is more expensive, whereas heavy crude provides the components used in products such as residual fuel, oil coke, and waxes.) By January 1987, as a result of war damage and government conservation policies, crude production averaged 2.2 million bpd, about 100,000 bpd below Iran's OPEC quota.

Data as of December 1987

 

Iran - TABLE OF CONTENTS

The Economy

Go Up - Top of Page



Make allRefer Reference your HomepageAdd allRefer Reference to your FavoritesGo to Top of PagePrint this PageSend this Page to a Friend


Information Courtesy: The Library of Congress - Country Studies


Content on this web site is provided for informational purposes only. We accept no responsibility for any loss, injury or inconvenience sustained by any person resulting from information published on this site. We encourage you to verify any critical information with the relevant authorities.

 

 

 
 


About Us | Contact Us | Terms of Use | Privacy | Links Directory
Link to allRefer | Add allRefer Search to your site

allRefer
All Rights reserved. Site best viewed in 800 x 600 resolution.