Mohammad-Ali Emadi said that concentrating on 20% of activities can generate 80% of the value added in production, productivity and industry development, provided those priorities are drawn from real market and industry needs.

Speaking Monday at a conference on improving and increasing output at oil and gas fields, Emadi pointed to rapid global changes in the energy sector, saying the world has moved beyond a sole focus on oil and gas. Major international players, he said, are shifting toward renewable energy, digital technologies and new business models — a trend that should not be ignored domestically.

“Change is not a choice, but a requirement for survival,” Emadi said, citing environmental pressures, sanctions, technological advances and the rise of artificial intelligence as factors forcing the oil and gas industry to rethink its structures and approaches.

Oil Engineering Association as advisory arm

Emadi described the Iranian Oil Engineering Association as the country’s only specialized scientific body in the upstream oil and gas sector operating under the Ministry of Science. Founded in 2000, the association has at times been unable to play an effective role, he said.

Following a general assembly in 1403 and the election of a new board formally recognized by the Ministry of Science, the association has entered a new phase, drawing interest from senior officials and oil industry managers, Emadi said.

He noted that the new board includes members from universities, industry and research centers, positioning the association to play a stronger role in policymaking, advisory services and problem-solving amid a global energy “paradigm shift.”

Reiterating the importance of prioritization, Emadi again stressed that focusing on the most impactful 20% of activities is key to delivering the bulk of value creation in the sector.

South Pars and investment challenges

Emadi identified the South Pars gas field as one of the country’s top current priorities, noting that the scale of required investment is substantial and that the role of private companies and contractors must be strengthened.

He said the main challenge facing the oil industry is limited financial resources at the National Iranian Oil Co., making changes in business models, attraction of private capital and use of new financial instruments essential.

Role of new technologies in boosting output

Emadi highlighted the role of digital technologies, artificial intelligence, big data processing and digitalization in improving exploration and production operations. These technologies, he said, can increase drilling efficiency, shorten project timelines, revive low-yield wells and improve reservoir performance.

He pointed to horizontal and directional drilling, multi-stage hydraulic fracturing and reservoir stimulation technologies as “quick wins” for boosting production, given their faster execution, lower initial investment needs and quicker returns.

Technologies developed in the oil industry are now being applied in areas such as geothermal energy, extraction of valuable minerals from groundwater and even clean energy production, he said, underscoring their broad potential.

Emadi emphasized that understanding global successes and failures in hydraulic fracturing and other advanced technologies is essential for proper localization and implementation in domestic fields, noting that these issues are being examined in specialized sessions at the conference.