IIES Warns on Unconstrained Fuel Consumption of Cars in Iran

SHANA (Tehran) -- The head of the Institute of International Energy Studies (IIES), affiliated to the Ministry of Petroleum warned on unconstrained fuel consumption of cars in Iran, saying that Iran will lose its oil export capacity in the future with the current trend of fuel consumption.

Speaking on the sidelines of the 28th Iran International Oil, Gas, ‎Refining and ‎Petrochemical Exhibition (Iran Oil Show 2024), kicked off on Wednesday (May 8, 2024) in Tehran, Mohammad-Sadeq Jokar noted that the same warning now exists for gas export due to high consumption of gas in the country.

The IIES provides consulting services to all sectors related to the oil and gas industry, he stated, noting that the services are carried out in four strategic areas.

Iran's energy security strategy has been finalized as its indicators have been defined, the official said, adding that for the first time in Iran we have a plan that is in harmony with the country's current challenges as all energy security indicators that are specific to Iran are taken into consideration.

Many problems in the country, such as energy management and the priority of demand management over supply, have been taken into consideration in the plan, he noted, explaining that the plan will be approved by the Supreme National Security Council and will be sent to all bodies, as its implementation is obligatory.

In addition to compiling the plan, the country's provincial energy perspective has been drawn, Jokar added, saying energy loss in each of the country's provinces can be identified in this way.

“For the first time, we drafted the global and regional energy pattern that plays a role in the field of export which can be effective in the patterns of neutralizing the sanctions that are based on the potentials of the private sector.”

Oil revenues are the driving force of various sectors of Iran's economy, he stated, adding that the third work is the analysis of weekly prices, as last year 93 percent of the estimates were within the predicted range.

The IIES head mentioned the fourth approach to be robotic monitoring in the market field, relying on events and trends, and stated: “The energy map of the countries is also being compiled, which is useful for all oil market dealers.”

Jokar pointed to the compilation of the country's optimal supply and demand portfolio at the request of the Plan and Budget Organization (PBO) in his organization as another step of this IIES.

He went on to say that for example, there is no place for coal in Iran's energy portfolio, while the share of coal in the world's fuel portfolio is expanding. “This problem also exists in the demand basket.”

Referring to the possibility of Iran's gas export to Europe, Jokar added that the US is removing part of the energy export market to Europe, and this is not a prospect that is attractive for Iran from an economic and security point of view.

He went on to say that the price of gas in Europe is decreasing. “On the other hand, it does not provide an advantage for Iran in terms of security, because the volume of Iran's gas exports to Europe cannot be enough to form dependence.”

There are more suitable accessible markets with lower costs and more sustainability for Iran in its neighborhood, Jokar stated.

He pointed to Iran's proposal to Russia to create a North-South corridor from Eurasia to the Persian Gulf and said the establishment of the corridor will form a network of suppliers and buyers of gas.

Referring to the smartening of the transmission network using Russia's experience in Iran, Jokar said Russia also has the agenda of using Iran's potential to use gas in the transportation network.

Other executive bodies are assigned with optimization, the official noted adding “The fact that the minister of petroleum undertakes this duty should not cause other executive bodies to neglect it.

In addition to 1,500 Iranian firms, a sum of 250 companies from 12 countries have taken part in this year’s ‎exhibition, whose motto is “Petroleum industry, production leap and technological optimization”.‎

Participants from the upstream, intermediate and downstream sectors of the oil industry, along with associations and unions of oil industry equipment manufacturers, first-time producers NTBFs are showcasing their achievements in the Iran Oil Show 2024, which is the most important Iranian event related to the oil industry.

The exhibition will be open to visitors at the Tehran International Permanent Fairground every day from 9:00 a.m. to 4:00 p.m. (0530 to 1330 GMT) until Saturday. ‎

News ID 641139


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