One of the clearest examples of the industry’s resilience was the rapid management of the fuel supply and distribution network after an attack on March 6, 2026, damaged parts of fuel storage facilities and transmission arteries. Fuel supplies to Tehran, Alborz and northern provinces remained stable, while measures were implemented to manage distribution and prevent disruptions.

At the same time, after four natural gas refineries in the Asalouyeh region were taken out of production in late March 2026, production, supply and distribution were managed through available capacity to ensure uninterrupted delivery to different sectors.

Higher oil and gas output

Alongside emergency response, increasing oil and gas production was a key priority under the 14th administration.

Crude oil production increased by about 230,000 barrels per day from the start of the administration through the end of 1404. Raw gas production also rose by about 36 million cubic meters per day in 1404 compared with 1402.

The ministry also fully met the targets of the Seventh Development Plan for 1404 regarding increased oil and gas production from shared fields. The achievement is particularly significant given the need to protect shared resources and prevent competing countries from increasing their withdrawals.

Upstream operations also included plans to restore production and rebuild damaged facilities. The measures, along with securing necessary approvals and developing strategies to manage fuel supply and distribution, were part of efforts to maintain stable production and services during emergencies. The strategy was designed to ensure that reconstruction and capacity restoration proceeded alongside continued production and meeting the country’s immediate needs.

Faster flare gas recovery

Another major focus was the collection of associated gas and reduction of gas flaring.

Operational capacity for collecting associated flare gas reached 5.9 billion cubic meters annually by the end of 1404, with more than 95% of the target set under the Seventh Development Plan for that year achieved.

The effort reduces the waste of hydrocarbon resources, creates opportunities for the economic use of associated gas and helps mitigate the environmental impact of flaring.

In refining, increasing petroleum product output was also a priority. Refinery gasoline production increased by about 9 million liters per day during the 14th administration. The increase is particularly important as rising domestic fuel consumption has underscored the need to strengthen production capacity and improve supply management.

Rebuilding damaged units and restoring production capacity have also been incorporated into the industry’s plans.

The oil industry’s bunkering sector grew by 34% during the period. Expanding marine fuel services not only strengthens support for maritime transportation but also creates opportunities to expand Iran’s role in the regional marine fuel market.

Petrochemical capacity expands

In the petrochemical sector, plans were launched to create 5.2 million metric tons of new production capacity.

Four projects with a combined capacity of 2.6 million metric tons were completed by the end of 1404, although their commissioning was delayed because of emergency conditions resulting from the war.

The expansion is aimed at increasing the value added from hydrocarbon resources, completing the petrochemical value chain and strengthening domestic production capacity.

Moving toward smarter energy management

The establishment of a comprehensive smart energy management system was another major infrastructure initiative.

The necessary infrastructure has been developed to connect metering points to the Oil Ministry’s monitoring center. After being established and standardized, the databases of the ministry’s four main companies were connected to the center.

Data are currently transferred and displayed with a maximum delay of 24 hours. Programs to install smart electronic metering equipment are also being implemented across the main subsidiaries.

The system is expected to provide a stronger foundation for monitoring consumption and making data-driven energy management decisions.

Social responsibility projects

In the area of social responsibility, 2,858 of the 12,294 public-benefit projects assigned to the National Iranian Oil Co. were completed and put into operation under the 14th administration, with funding of about 96 trillion rials.

The projects were implemented with the participation of provincial authorities and contractors and addressed part of the infrastructure needs of communities surrounding oil industry operations.

Private sector takes larger role

The Oil Ministry also sought to use private-sector capacity to improve natural gas consumption efficiency.

The qualifications of 62 applicant companies were approved as Type 2 gas operators. Subsequently, 81 contracts were signed with 20 qualified companies across 29 provincial gas companies.

For the first time, seven investment contracts were also signed with the private sector to build fast-track crude oil processing units with a combined capacity of 430,000 barrels per day. Once operational, the projects would put more than 10% of the country’s current processing capacity in the hands of private companies.

Persistent challenges

Despite these achievements, the oil industry continued to face major challenges, including rising consumption of natural gas and petroleum products, worsening energy imbalances, damage to production, transmission, storage and distribution infrastructure, reduced petrochemical operational capacity, export restrictions and difficulties securing sustainable financing.

Other challenges included financial issues between the National Iranian Oil Co. and the government, as well as the impact of sanctions on access to banking, insurance and technology services.

Despite these pressures, the Oil Ministry’s performance under the 14th administration shows that the industry simultaneously pursued emergency management, higher production, expansion of refining and petrochemical capacity, flare gas recovery, smart energy management, private-sector investment and stronger production and energy-supply infrastructure.

Continuing these efforts could strengthen the oil industry’s resilience and further bolster the country’s energy security.