Dariush
Home Page Kashan Fine Art Khouzestan Slide Show Glory days Shiraz
>
Flag History
Esgh-e Vatan
Isfahan
New Year
Iran, History,
Land & People
Religions
Boustan
Art & Miniature
Shahnameh
Azarbaijan

Land & People

Goftam gham-e to daram!
hafez.gif (55312 bytes)
Arab Conquest
Rebirth
Heros
Cyrus
Isfahan 2

Reporters 1

Spy 1
Spy 2

Spy 3

Fossil Fuel


Fossil Fuel

Relying on single source of revenue such as oil, was a wrong policy from day one. Iran is a big country, with good productive lands and enough water sources (if it is used properly).

It has been estimated that Iran is sitting on 83 -85 Billion (thousand millions) barrels oil. It means one eleventh (1/11) of world oil.

Iran's oil has been abused over years in particular over last 21 years, through wrong agreements and wrong handling of oil wells. (to read more about typical agreement go to foot note 1)

An oil well requires to be pumped (injected) by gas so that a comprehensive and total production is achieved. Over last 21 years due to Iran-Iraq war and lack of knowledgeable technicians (most migrated to other countries) most oil wells inside plateau of Iran have died or  are about to die.

This wrongdoing reduced the reserved capacity to 42 Billion barrels. Iran is the second producer of gas (natural gas). This product requires planning and pipeline.

While Iran was busy in war and struggling with its interior turmoil, the U.S.A. in collaboration with Turkey signed an important agreement with separated states of Russia, at north of Caspian Sea (Mazandaran Sea), which are the most richest oil territories. It is notable that most of oil in this region is located on Iranian shores.

First oil well reached production in 1908 in Masjed Soleyman (Iran). Until 1953 the total revenue in Iranian hands was almost $360,000,000.  Whereas England received 12 times of this amount reaching ($360,000,000 X 12 = $4,320,000,000), which is a lot of money for England!

Iran's revenue through sales of oil between 1953-1979 is estimated at $35 Billions. Estimated revenue between 1979-1999 is $290 Billions.

As you have noticed I have based the starting point at 1953 (People uprising against Mossadegh, returning Shah = 28 A'mordad).  This uprising set the starting point of so called revolution at 1979.

The growth that Iran experienced between 1953 - 1979 amounting to $35 Billions is enormous if it is compared to the growth that was experienced during 1979-2000 of $290 Billions.

Who do you think benefited from this big chunk of money?

Most part of this National Revenue have been abused by "Mullas" to purchase guns and ammunition during Iraq-Iran war or have been used through different arrangements!

Iran must change it's strategies and should produce more of farm products. Once Mohammad Mossadegh (Prime Minister prior to 1953 uprising) tried and failed reducing the nation's debt to a minimal without using the oil revenue. During period which the miss-management of the Mossadegh regime forced the country stepping into recession.

Shifting from dependency on oil income will not be an easy task. Technology, expertise, professionalism and comprehensive strategic planning are required.

Iran has many other resources. If appropriate and modern irrigation technique is used, the farming alone can easily replace big part of the oil revenue.

Relieving Iran from single source of Revenue

Relieving Iran from its single-product economy is a posing challenge. Iran's economy very much anchors on oil, since it is the major source of National Revenue. The income from this Natural Resource has also become the source of much dependency for the nation.

Iran have lost level of production of crude oil both at offshore and onshore this adversely affected its income. This is due to a delay in the implementation of oil projects, in simple word;  due to wrongful and insufficient investments in oil infrastructure projects.

Iran's internal current economic situation has not kept pace with the global economic developments. International market has changed its strategy in usage of fossil fuel. Nowadays, the optimal utilization is the main issue.

Since Nationalization of the Oil Industry (1951) no major amendment has been made to Iran's oil research, development, export and employee training. Although, Iran relies heavily and rigidly  on oil revenue, no major planning has taken to consideration, in particular during the years 1979-2000.

Iran was a major player in OPEC. Its domestic mismanagement has converted the oil into a single source of income. Members of OPEC were forced to give up on the price and to increase the uncontrolled production. 

Because of certain kinds of turmoil in structure of Iran's government since 1979, they have not been able to respond to the rapid developments in the regional and international oil industry. Consequently, Iran's oil wells have  lost the production almost 30-50%. In order to meet its real export level in OPEC, Iran needs to make a dramatic change in the management of its oil policy.

An immediate plan to train new experts and develop engineering systems are an absolute necessity  to fully mobilize the present resources. Iran's oil and gas export, revenue and management figures do not appear to be realistic.

Presently, most revenues from oil are used to purchase unnecessary items or lost to un-explained expenses within various levels of government such as National Iranian Oil Company (NIOC), ministry of finance and ministry of oil. Not to mention the major conflicts among levels of the existing theocratic government. Whereas  the crude oil price is dropping substantially.  Iran's dependency on oil is increasing dramatically. At this level Iran is unable to produce by-products and invest in other industries to liberate the nation from one source of income.

Nowadays it has become necessary to undertake a comprehensive study and series of planning to liberate Iranian revenue from single source of income. 

If nation wide irrigation is modernized, modern technical cultivation and farming is developed, by-products to oil industry is expanded, petrochemical industries are developed,  production of hydro energy is increased, utilization of natural gas is expanded, development and export of other resources are added to Iran's trade, soon dependency in one source will be achieved. Consequently,  motivation of foreign nations who have been interfering in Iran's internal affairs (Foot note 2 will be diminished.

Such a shake-up will firstly lead to competition amongst affiliated investors and certainly would create incentives for better performances. Secondly, the by-products of oil, farming and other resources will contribute to the nation's revenue and will liberate Iran from keeping its eggs in one basket.

We must have learned our lesson from past, in particular the very expensive lessons that Nation learned in the period of 1979-2000. US sanctions against companies investing in Iran, fast shifting of industrial world to replace oil by another source of energy,  loss of income and increase of dependency is enough to wake-up the policy makers of the country.

Unfortunately heavy investments in Iran's petrochemical sector, nuclear power and other projects, which started well before 1979, have not yet flourished. Apparently, it will take years for the investments to yield profits. 

Iran has the capacity to produce its own farming products If supported by central government, independent investors will be motivated,  and certainly are capable to contribute to the economy. It is provident that any government, including mismanaged Islamic government cannot be a good investor and business body, therefore will not be able to handle projects efficiently and profitably.

If this is not taken into immediate consideration, soon Iran will face a gradual decline. As predicted, shall drop to the bottom of list of liveable countries. Iran must pay proper attention to non-oil exports. It is necessary for all sectors to enhance their share in the country's non-oil revenues. This requires rational planning, investments and sustained regulations.

The nation has proved that it has capacity and potentials to achieve a remarkable growth; not only in politic, but in invention, industry and most importantly towards liberating the country from dependency on the oil.

There is a high rate of visible investors  in non- oil industries and non-oil who are capable of  adopting of pragmatic approaches.

Back to Top

Foot Note 1 (Typycal oil Agreement)
Foot Note 2 (Internal Affairs)

Home Page Fine Art Khouzestan Glory Days Shiraz Side Show
40ClumnNgt.jpg (27901
 bytes)
Bottom menu

7 Faces of History | 7000 Years Civilization| 5000 Years of Engineering| Ahmad Kasravi| Ancient Women Salary, Employees | Ancient Women | Arab Conquest | Assyrians Persians | Bishapour| Chogha Zanbil - Elamid Era| Clay notes - Darius Administration | Coins | Constitution | Cyrus the Great | Departure 79| Dynasties (2 Pages) | Engineering of an Empire | Fine Art (3 Pages)| Flag History (1) | Flag History (2)| Flag History (3)| Fossil Fuel| Fossil Fuel-Concession| Glory 1,| Glory 2,| Glory 3 Ancient Iran| Glory 4, Journey to Iran | Glory 5, Iran, Nothing but Iran | Glory of Iran as per Artist| Glory of Iran by Picture| Glory of Persepolis| Hamedan | Herodotus & Iran | History of Iran | Iran heritage| Iran's Heritage (Saad Abad)| Iran, History, Land and People | Iran Farda (3 Pages) | Iranian Government | Iran Media | Iran or Persia| Iran's views| Iran Rulers | Isfahan| Isfahan Page 2| Kashan| Kavir Lout = Gandom Beryan| Khouzestan| Lakes' of Iran| Lost Civilization | Music Glory | Naghsh-e-Rostam | New Year (Now-Rooz) | New Year's Haft Seen | PERSIAN Gulf | Poet and Patriots| Old pictures of Iran 1| Old pictures of Iran 2| Old pictures 3 Kajar Era | Persepolis | Underground of Persepolis | Rebirth| Religion of Persians | Reporters 1 | Reporters 2 | Reza Shah the Great| Sayeh Jam | Shiraz| Slide Show | Spy 1 | Spy 2 | Spy 3 | Tabriz (1)| Tabriz 2| Tabriz 3| Tabriz 4| Tehran| Tehran old and new | The Land And The People | Tisfoon | Under Ground City of Zoroastrians'(!) Derinkuyu = Deep Well | Women Clothing in time | Women Clothing in time II | Xeroxes Note | Yalda | Search Engine | Directory of Related Links | Contact Us |

See our Glory pages            Iran, History, Land and Glory


© 1999-2017 All rights reserved. Last revised: 2017
Please click here to read our disclaimer
Webmaster
Page designed by Direcconnect click here -from any PC with Internet access.